USHAMART - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | USHAMART | Market Cap | 14,231 Cr. | Current Price | 467 ₹ | High / Low | 498 ₹ |
| Stock P/E | 36.4 | Book Value | 58.7 ₹ | Dividend Yield | 0.64 % | ROCE | 30.0 % |
| ROE | 23.5 % | Face Value | 1.00 ₹ | DMA 50 | 447 ₹ | DMA 200 | 421 ₹ |
| Chg in FII Hold | 0.15 % | Chg in DII Hold | 0.70 % | PAT Qtr | 138 Cr. | PAT Prev Qtr | 84.0 Cr. |
| RSI | 54.8 | MACD | 8.17 | Volume | 3,07,208 | Avg Vol 1Wk | 3,56,229 |
| Low price | 302 ₹ | High price | 498 ₹ | PEG Ratio | 1.63 | Debt to equity | 0.00 |
| 52w Index | 84.4 % | Qtr Profit Var | 76.8 % | EPS | 11.6 ₹ | Industry PE | 22.5 |
📊 Core Financials:
USHAMART has delivered strong financial performance with quarterly PAT rising from 84 Cr. to 138 Cr. (↑76.8%). Profitability metrics are impressive, with ROCE at 30.0% and ROE at 23.5%. Debt-to-equity is 0.00, indicating a debt-free balance sheet. EPS stands at 11.6 ₹, supported by consistent cash flows and operational efficiency.
💹 Valuation Indicators:
The stock trades at a P/E of 36.4, higher than the industry average of 22.5, suggesting premium valuation. P/B ratio is ~7.95 (Price 467 ₹ / Book Value 58.7 ₹), which is elevated. PEG ratio of 1.63 indicates growth is priced in but still reasonable compared to peers. Intrinsic value appears slightly lower than current levels, limiting margin of safety.
🏢 Business Model & Competitive Advantage:
USHAMART operates with strong brand presence and diversified offerings in industrial solutions. Its competitive advantage lies in efficient capital utilization, debt-free operations, and strong demand in its sector. High ROCE and ROE highlight superior capital efficiency and profitability.
🎯 Entry Zone & Long-Term Guidance:
Current price (467 ₹) is above both 50 DMA (447 ₹) and 200 DMA (421 ₹), showing bullish momentum. RSI at 54.8 indicates moderate strength, while MACD at 8.17 confirms positive momentum. A good entry zone would be 440–460 ₹ if undervaluation emerges. Long-term holding is favorable given strong fundamentals and growth trajectory.
Positive
- 📈 Strong quarterly profit growth (↑76.8%).
- 💰 High ROCE (30.0%) and ROE (23.5%).
- 📉 Debt-free balance sheet (Debt-to-equity 0.00).
- 🌍 Increased FII (+0.15%) and DII (+0.70%) holdings.
Limitation
- ⚠️ High P/E (36.4) vs industry average (22.5).
- 📊 Elevated P/B ratio (~7.95).
- 📉 Dividend yield modest at 0.64%.
- 📈 Valuation premium limits margin of safety.
Company Negative News
📰 No major negative news reported recently, but valuation concerns remain due to high multiples compared to industry peers.
Company Positive News
📰 Strong quarterly earnings with PAT growth of 76.8%. Both FII and DII holdings increased, reflecting investor confidence.
Industry
🏭 Industry P/E stands at 22.5, lower than USHAMART’s valuation. The sector is experiencing steady demand growth, with companies focusing on efficiency and innovation.
Conclusion
✅ USHAMART is financially strong with excellent profitability, debt-free operations, and strong growth momentum. However, valuations are stretched compared to industry averages. Best suited for long-term investors who can accumulate near 440–460 ₹. Short-term traders may benefit from current bullish momentum but should monitor valuation risks.
Would you like me to extend this into a peer comparison to see how it stacks up against competitors in terms of valuation and growth?