USHAMART - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.0

Here’s a focused evaluation of Usha Martin Ltd. (USHAMART) — a specialty steel and wire rope manufacturer with solid capital efficiency, but modest growth visibility and fair valuations.

⚙️ Core Financial Performance

Profitability Ratios

ROCE: 18.8%, ROE: 15.8% — strong returns reflect efficient asset utilization and solid earnings leverage

EPS: ₹13.4 — decent earnings at current price levels

Growth Trends

PAT Q-o-Q: ₹92.3 Cr → ₹101 Cr — mild growth

Quarterly Profit Var: -5.03% — a slight pullback that hints at margin or volume pressure

FII/DII Holding Change: Net positive — growing institutional interest, especially DII (+1.81%)

Debt Profile

Debt-to-Equity: 0.15 — low leverage gives Usha Martin stability and flexibility

📊 Valuation Snapshot

Metric Value Viewpoint

P/E Ratio 28.5 Slightly expensive vs. industry PE (23.8) — valuation premium visible

P/B Ratio ~4.19 Reflects investor optimism; justified only with sustained earnings

PEG Ratio 1.86 Acceptable but slightly rich — signals moderate growth priced in

Dividend Yield 0.79% Low — not ideal for dividend-focused investors

🏗️ Business Model & Edge

Focus Area: Wire ropes, specialty steel — key in sectors like mining, infrastructure, elevators, and ports

Strengths

Export-oriented growth with a global footprint

Niche expertise in wire rope tech

Stable operating structure with conservative debt

Risks

Highly cyclical demand tied to infra and mining capex

Steel price volatility and input cost pressures

Narrow product diversification

📉 Technical & Sentiment Indicators

RSI: 59.3 — near overbought zone; bullish sentiment present

MACD: 9.02 — strong bullish momentum

Volume Spike — far above 1-week average, indicating strong accumulation

Price vs DMA

Current price above both 50-DMA (₹352) & 200-DMA (₹341) — trend confirmation

🎯 Entry Zone & Investment Strategy

Suggested Entry: ₹355–₹370 — preferable accumulation window before breakout attempts

12-Month Target: ₹420–₹440, depending on capex cycles and margin sustenance

Investor Profile Fit

Ideal for small-cap momentum seekers

Long-term holders with tolerance for cyclical moves could benefit from sectoral upside

Would you like a margin sensitivity scenario or to compare it with peers like Ramkrishna Forgings or APL Apollo for deeper positioning? I can crunch that in no time. Let’s shape the steel of your portfolio! 🧮📈

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