⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
USHAMART - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | USHAMART | Market Cap | 12,461 Cr. | Current Price | 409 ₹ | High / Low | 498 ₹ |
| Stock P/E | 37.7 | Book Value | 52.2 ₹ | Dividend Yield | 0.73 % | ROCE | 26.6 % |
| ROE | 21.1 % | Face Value | 1.00 ₹ | DMA 50 | 433 ₹ | DMA 200 | 406 ₹ |
| Chg in FII Hold | 0.48 % | Chg in DII Hold | 1.82 % | PAT Qtr | 84.0 Cr. | PAT Prev Qtr | 97.3 Cr. |
| RSI | 36.1 | MACD | -9.77 | Volume | 4,51,387 | Avg Vol 1Wk | 4,98,335 |
| Low price | 279 ₹ | High price | 498 ₹ | PEG Ratio | 2.15 | Debt to equity | 0.03 |
| 52w Index | 59.5 % | Qtr Profit Var | 8.99 % | EPS | 9.94 ₹ | Industry PE | 18.7 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT declined from 97.3 Cr. to 84 Cr., showing short-term pressure despite overall growth (8.99% YoY).
- Margins & Returns: Strong ROCE (26.6%) and ROE (21.1%) highlight efficient capital usage and profitability.
- Debt Ratios: Debt-to-equity at 0.03 indicates negligible leverage and strong balance sheet health.
- Cash Flows: Low debt and consistent earnings suggest healthy operating cash flows.
💹 Valuation Indicators
- P/E Ratio: 37.7 vs industry average of 18.7 → trades at a premium.
- P/B Ratio: Current Price / Book Value ≈ 7.8 → relatively high compared to intrinsic value.
- PEG Ratio: 2.15 → indicates overvaluation relative to growth.
- Intrinsic Value: Current price (409 ₹) appears stretched compared to fundamentals.
🏢 Business Model & Competitive Advantage
- Strong presence in consumer durables with diversified product portfolio.
- High efficiency ratios (ROCE, ROE) provide competitive edge.
- Minimal debt enhances resilience and financial flexibility.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 380 ₹ – 400 ₹, closer to 200 DMA support.
- Long-Term Holding: Suitable for investors seeking growth exposure, but staggered buying recommended due to premium valuation.
✅ Positive
- High ROCE and ROE indicating strong efficiency.
- Low debt-to-equity ratio ensures financial safety.
- Strong institutional support with FII (+0.48%) and DII (+1.82%) increases.
⚠️ Limitation
- Premium valuation compared to industry peers.
- PEG ratio signals overvaluation relative to growth.
- Quarterly PAT decline shows near-term earnings pressure.
📉 Company Negative News
- Stock trading below 50 DMA (433 ₹), indicating weak momentum.
- RSI at 36.1 and negative MACD (-9.77) suggest bearish technical outlook.
📈 Company Positive News
- Strong institutional inflows (FII and DII holdings increased).
- Long-term profit growth trend remains intact despite quarterly dip.
🏭 Industry
- Industry P/E at 18.7 indicates sector trades at lower multiples.
- Consumer durables sector benefits from rising demand and urbanization.
- USHAMART commands premium due to efficiency and brand strength.
🔎 Conclusion
USHAMART shows strong fundamentals with high efficiency and minimal debt, but trades at a significant premium compared to industry peers. Entry is advisable near 380 ₹ – 400 ₹ for long-term investors, with staggered accumulation to mitigate valuation risks. Overall, the company remains financially healthy and strategically positioned, though short-term technicals suggest caution.
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