⚠ 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 | 12,519 Cr. | Current Price | 411 ₹ | High / Low | 498 ₹ |
| Stock P/E | 37.9 | Book Value | 52.2 ₹ | Dividend Yield | 0.73 % | ROCE | 26.6 % |
| ROE | 21.1 % | Face Value | 1.00 ₹ | DMA 50 | 420 ₹ | DMA 200 | 409 ₹ |
| Chg in FII Hold | 0.48 % | Chg in DII Hold | 1.82 % | PAT Qtr | 84.0 Cr. | PAT Prev Qtr | 97.3 Cr. |
| RSI | 48.6 | MACD | -3.18 | Volume | 2,84,379 | Avg Vol 1Wk | 3,01,599 |
| Low price | 281 ₹ | High price | 498 ₹ | PEG Ratio | 2.16 | Debt to equity | 0.03 |
| 52w Index | 59.9 % | Qtr Profit Var | 8.99 % | EPS | 9.94 ₹ | Industry PE | 18.1 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined from 97.3 Cr. to 84 Cr., showing short-term pressure. EPS at 9.94 ₹ remains steady.
- Margins & Returns: ROCE at 26.6% and ROE at 21.1% highlight strong efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.03 indicates negligible leverage, ensuring balance sheet strength.
- Cash Flow: Supported by consistent earnings and low debt burden.
💹 Valuation
- P/E Ratio: 37.9 vs Industry PE of 18.1 → Valuation premium compared to peers.
- P/B Ratio: Current Price 411 ₹ vs Book Value 52.2 ₹ → High premium.
- PEG Ratio: 2.16 → Moderately expensive relative to growth.
- Intrinsic Value: Current price trades above fair value, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Strong brand presence in consumer goods with diversified offerings.
- High ROCE and ROE reflect efficient capital utilization.
- Low debt enhances resilience and financial flexibility.
📈 Technicals & Entry Zone
- RSI at 48.6 → Neutral zone, neither overbought nor oversold.
- MACD negative (-3.18) → Weak momentum, short-term caution advised.
- Entry Zone: Attractive accumulation between 380–400 ₹.
- Long-Term Holding: Strong fundamentals justify holding, though valuation risks remain.
✅ Positive
- High ROCE and ROE indicate strong efficiency.
- Low debt-to-equity ratio ensures financial stability.
- Strong institutional support with rising FII and DII holdings.
⚠️ Limitation
- Valuation premium compared to industry peers.
- Recent quarterly profit decline indicates short-term weakness.
- Technical indicators show weak momentum.
📉 Company Negative News
- Quarterly PAT dropped from 97.3 Cr. to 84 Cr., reflecting earnings pressure.
📈 Company Positive News
- FII holdings increased by 0.48% and DII holdings by 1.82%, showing strong institutional confidence.
- 52-week performance up 59.9%, indicating strong investor returns.
🏭 Industry
- Industry PE at 18.1 suggests sector trades at lower multiples.
- USHAMART commands premium valuation due to strong fundamentals and efficiency.
🔎 Conclusion
USHAMART demonstrates robust fundamentals with excellent return ratios and minimal debt, making it a financially strong company. However, valuations are stretched compared to industry peers. Entry is favorable near 380–400 ₹ for long-term investors. Despite short-term profit decline and weak momentum, the company remains a solid long-term hold due to its competitive advantage and institutional support.