NSEI:USHAMART

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with adequate balance sheet.


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: USHAMART's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

USHAMART

0.09%

IN Metals and Mining

-0.6%

IN Market


1 Year Return

-30.3%

USHAMART

-23.5%

IN Metals and Mining

5.0%

IN Market

Return vs Industry: USHAMART underperformed the Indian Metals and Mining industry which returned -23.5% over the past year.

Return vs Market: USHAMART underperformed the Indian Market which returned 5% over the past year.


Shareholder returns

USHAMARTIndustryMarket
7 Day-0.3%0.09%-0.6%
30 Day16.2%9.9%5.9%
90 Day21.3%7.6%8.2%
1 Year-30.3%-30.3%-22.2%-23.5%7.0%5.0%
3 Year122.3%122.3%9.6%-2.5%36.1%29.2%
5 Year1.7%1.7%7.9%-9.4%38.6%25.8%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: USHAMART (₹30.45) is trading below our estimate of fair value (₹141.12)

Significantly Below Fair Value: USHAMART is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: USHAMART is good value based on its PE Ratio (4.4x) compared to the Metals and Mining industry average (8.4x).

PE vs Market: USHAMART is good value based on its PE Ratio (4.4x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

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

11.4%

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?

26.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: USHAMART has high quality earnings.

Growing Profit Margin: USHAMART's current net profit margins (8.9%) are higher than last year (-4.8%).


Past Earnings Growth Analysis

Earnings Trend: USHAMART has become profitable over the past 5 years, growing earnings by 26.7% per year.

Accelerating Growth: USHAMART has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: USHAMART has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (14.4%).


Return on Equity

High ROE: USHAMART's Return on Equity (17.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Usha Martin's financial position?


Financial Position Analysis

Short Term Liabilities: USHAMART's short term assets (₹13.7B) exceeds its short term liabilities (₹10.5B)

Long Term Liabilities: USHAMART's short term assets (13.7B) exceeds its long term liabilities (4.0B)


Debt to Equity History and Analysis

Debt Level: USHAMART's debt to equity ratio (45.8%) is considered high

Reducing Debt: USHAMART's debt to equity ratio has reduced from 197% to 45.8% over the past 5 years.

Debt Coverage: USHAMART's debt is well covered by operating cash flow (122%).

Interest Coverage: USHAMART's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: USHAMART has a high level of physical assets or inventory.

Debt Coverage by Assets: USHAMART's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.4%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Usha Martin's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Rajeev Jhawar (55yo)

11.5yrs

Tenure

₹15,756,000

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 ($USD219.56K) is above average for companies of similar size in the Indian market ($USD33.52K).

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


Management Age and Tenure

3.3yrs

Average Tenure

55yo

Average Age

Experienced Management: USHAMART's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

69yo

Average Age

Experienced Board: USHAMART's board of directors are considered experienced (4 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy₹3,815,14918 Sep 19
UMIL Share & Stock Broking Services(p) Ltd.
EntityCompany
Shares135,000
Max Price₹28.26
Sell₹8,090,91413 Sep 19
Peterhouse Investments India Limited
EntityCompany
Shares305,433
Max Price₹26.49
Sell₹1,362,00003 Sep 19
Peterhouse Investments India Limited
EntityCompany
Shares50,000
Max Price₹27.24
Sell₹2,707,99629 Jun 19
Usha Martin Ventures Limited
EntityCompany
Shares100,000
Max Price₹27.08
Sell₹57,768,77310 Apr 19
Peterhouse Investments India Limited
EntityCompany
Shares1,400,456
Max Price₹41.25

Ownership Breakdown

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


Management Team

  • Rajeev Jhawar (55yo)

    MD & Executive Director

    • Tenure: 11.5yrs
    • Compensation: ₹15.76m
  • Anirban Sanyal

    Chief Financial Officer

    • Tenure: 0.6yrs
  • Shampa Ray

    Compliance Officer & Company Secretary

    • Tenure: 3.3yrs
    • Compensation: ₹3.42m
  • Dhrub Basu (61yo)

    President of Human Resources

    • Tenure: 0yrs
  • Pravin Jain (65yo)

    Joint MD & Executive Director

    • Tenure: 9.8yrs
    • Compensation: ₹15.86m
  • S. Mazumder

    Managing Director of Brunton Wolf Wire Ropes

    • Tenure: 0yrs
  • Jayanta Bhowmik (52yo)

    Senior Vice President of Information Technology

    • Tenure: 0yrs
  • - Bedanand (43yo)

    Vice President of Commercial

    • Tenure: 0yrs
  • Devadip Bhowmik (54yo)

    Chief Marketing Officer & VP

    • Tenure: 0yrs
  • Ranajit Chakraborty (60yo)

    Vice President of Power Plant

    • Tenure: 0yrs

Board Members

  • Mukesh Rohatgi (69yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: ₹450.00k
  • Rajeev Jhawar (55yo)

    MD & Executive Director

    • Tenure: 11.5yrs
    • Compensation: ₹15.76m
  • Brij Jhawar (82yo)

    Founder & Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: ₹300.00k
  • Pravin Jain (65yo)

    Joint MD & Executive Director

    • Tenure: 9.8yrs
    • Compensation: ₹15.86m
  • Vijay Bapna (71yo)

    Additional Independent Director

    • Tenure: 0.5yrs
  • Venkatachalam Ramakrishna Iyer

    Nominee Director

    • Tenure: 4yrs
    • Compensation: ₹350.00k

Company Information

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


Key Information

  • Name: Usha Martin Limited
  • Ticker: USHAMART
  • Exchange: NSEI
  • Founded: 1960
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹10.056b
  • Shares outstanding: 304.74m
  • Website: https://www.ushamartin.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
USHMABDL (Bourse de Luxembourg)GDR EACH REPR 5 ORD INR1 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 Analysis2019/11/13 12:42
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.