BSE:517146

Stock Analysis Report

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Executive Summary

Usha Martin Limited, together with its subsidiaries, manufactures and sells wires, wire ropes, and strands products in India and internationally. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Usha Martin's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 517146 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 517146's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-6.4%

517146

-4.5%

IN Metals and Mining

2.0%

IN Market


1 Year Return

18.7%

517146

28.2%

IN Metals and Mining

17.7%

IN Market

Return vs Industry: 517146 underperformed the Indian Metals and Mining industry which returned 28.2% over the past year.

Return vs Market: 517146 exceeded the Indian Market which returned 17.7% over the past year.


Shareholder returns

517146IndustryMarket
7 Day-6.4%-4.5%2.0%
30 Day7.5%11.5%7.0%
90 Day54.2%47.9%26.0%
1 Year18.7%18.7%36.1%28.2%19.8%17.7%
3 Year16.4%16.4%-2.8%-14.7%11.9%6.5%
5 Year296.6%296.6%199.0%143.0%88.7%74.4%

Long-Term Price Volatility Vs. Market

How volatile is Usha Martin's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Usha Martin undervalued compared to its fair value and its price relative to the market?

13.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 517146 (₹33) is trading above our estimate of fair value (₹2.08)

Significantly Below Fair Value: 517146 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 517146 is good value based on its PE Ratio (13.1x) compared to the IN Metals and Mining industry average (17.6x).

PE vs Market: 517146 is good value based on its PE Ratio (13.1x) compared to the Indian market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 517146's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 517146 is good value based on its PB Ratio (0.8x) compared to the IN Metals and Mining industry average (1.1x).


Next Steps

Future Growth

How is Usha Martin forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

34.4%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Usha Martin has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Usha Martin performed over the past 5 years?

47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 517146 has a large one-off gain of ₹258.5M impacting its September 30 2020 financial results.

Growing Profit Margin: 517146's current net profit margins (4%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: 517146 has become profitable over the past 5 years, growing earnings by 47.5% per year.

Accelerating Growth: 517146's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 517146 had negative earnings growth (-63.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (-23.5%).


Return on Equity

High ROE: 517146's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is Usha Martin's financial position?


Financial Position Analysis

Short Term Liabilities: 517146's short term assets (₹12.9B) exceed its short term liabilities (₹7.9B).

Long Term Liabilities: 517146's short term assets (₹12.9B) exceed its long term liabilities (₹4.2B).


Debt to Equity History and Analysis

Debt Level: 517146's debt to equity ratio (36.3%) is considered satisfactory.

Reducing Debt: 517146's debt to equity ratio has reduced from 209.4% to 36.3% over the past 5 years.

Debt Coverage: 517146's debt is not well covered by operating cash flow (17.9%).

Interest Coverage: 517146's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Usha Martin current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 517146's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 517146's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 517146's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 517146's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 517146 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 517146's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Rajeev Jhawar (56 yo)

12.67yrs

Tenure

₹14,907,000

Compensation

Mr. Rajeev Jhawar has been the Managing Director at Usha Martin Limited since May 19, 2008. Mr. Jhawar has been associated with Usha Martin for more than a decade and has rich experience in the administrat...


CEO Compensation Analysis

Compensation vs Market: Rajeev's total compensation ($USD203.89K) is above average for companies of similar size in the Indian market ($USD44.13K).

Compensation vs Earnings: Rajeev's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rajeev Jhawar
MD & Executive Director12.67yrs₹14.91m1.76%
₹ 179.6m
Anirban Sanyal
CFO & COO1.75yrs₹8.85mno data
Shampa Ray
Senior GM4.42yrs₹5.63mno data
Murari Rathi
Vice President of Accounts & Commercialno datano datano data
Santanu Das
Senior General Manager of Sales & Marketingno datano datano data
Devadip Bhowmik
Chief Marketing Officer & VPno datano datano data
Dhrub Basu
President of Human Resources & Additional Whole Time Director0.58yrno datano data
S. Mazumder
Managing Director of Brunton Wolf Wire Ropesno datano datano data
Amitava Sircar
Chief Operating Officer of Steel Divisionno data₹13.78mno data
Jayanta Bhowmik
Senior Vice President of Information Technologyno datano datano data
Dimitri Gartner
Chief Operating Officer of Usha Martin International Limited (UK)no datano datano data
S. Birla
Managing Director of Usha Siam Steel Industries Public Co. Ltd.no datano datano data

4.4yrs

Average Tenure

55yo

Average Age

Experienced Management: 517146's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rajeev Jhawar
MD & Executive Director12.67yrs₹14.91m1.76%
₹ 179.6m
Dhrub Basu
President of Human Resources & Additional Whole Time Director0.58yrno datano data
Ramni Nirula
Independent Additional Director1.5yrs₹450.00kno data
Mukesh Rohatgi
Non-Executive Independent Chairman1yr₹650.00kno data
Vijay Bapna
Additional Independent Director1.67yrs₹350.00kno data
Venkatachalam Ramakrishna Iyer
Nominee Director5.17yrs₹400.00kno data

1.6yrs

Average Tenure

68yo

Average Age

Experienced Board: 517146's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Usha Martin Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Usha Martin Limited
  • Ticker: 517146
  • Exchange: BSE
  • Founded: 1960
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹10.178b
  • Shares outstanding: 304.74m
  • Website: https://www.ushamartin.com

Number of Employees


Location

  • Usha Martin Limited
  • 2A, Shakespeare Sarani
  • Mangal Kalash
  • Kolkata
  • West Bengal
  • 700071
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
USHMABDL (Bourse de Luxembourg)GDR REG SLUUSDOct 1994
517146BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2000
USHAMARTNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2000

Biography

Usha Martin Limited, together with its subsidiaries, manufactures and sells wires, wire ropes, and strands products in India and internationally. The company offers wire ropes, including oil and offshore, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 12:14
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.