Usha Martin (NSEI:USHAMART) - Share price, News & Analysis

USHAMART fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	4/6

USHAMART Stock Overview

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

Rewards

Price-To-Earnings ratio (11.4x) is below the Indian market (19.4x)

Earnings grew by 89.1% over the past year

Risk Analysis

Unstable dividend track record

Usha Martin Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Usha Martin
Historical stock prices
Current Share Price	₹108.85
52 Week High	₹164.90
52 Week Low	₹53.00
Beta	0.78
1 Month Change	-4.10%
3 Month Change	-2.81%
1 Year Change	95.95%
3 Year Change	257.47%
5 Year Change	478.99%
Change since IPO	66.69%

Recent News & Updates

May 08

Usha Martin (NSE:USHAMART) Shareholders Will Want The ROCE Trajectory To Continue

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Shareholder Returns

	USHAMART	IN Metals and Mining	IN Market
7D	2.9%	-4.1%	2.3%
1Y	96.0%	-19.7%	-0.9%

Return vs Industry: USHAMART exceeded the Indian Metals and Mining industry which returned -18.7% over the past year.

Return vs Market: USHAMART exceeded the Indian Market which returned -1.7% over the past year.

Price Volatility

Is USHAMART's price volatile compared to industry and market?
USHAMART volatility
USHAMART Average Weekly Movement	8.1%
Metals and Mining Industry Average Movement	7.7%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

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

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

About the Company

Founded	Employees	CEO	Website
1960	2,271	Rajeev Jhawar	https://www.ushamartin.com

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, crane, mining, elevator, fishing, aerial, and general engineering ropes, as well as ropes for conveyor cords and structural systems. It also manufactures a range of industrial machines, including wire drawing machines, stranding machines, wire rope closing machines, steel plant equipment, cable machines, and material handling equipment; machines for manufacturing bright bars; machines for armoring and rewinding; and copper coating lines for CO2 welding wire manufacture.

Usha Martin Fundamentals Summary

How do Usha Martin's earnings and revenue compare to its market cap?
USHAMART fundamental statistics
Market Cap	₹33.19b
Earnings (TTM)	₹2.91b
Revenue (TTM)	₹26.88b

11.4x

P/E Ratio

1.2x

P/S Ratio

Is USHAMART overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
USHAMART income statement (TTM)
Revenue	₹26.88b
Cost of Revenue	₹14.87b
Gross Profit	₹12.01b
Other Expenses	₹9.10b
Earnings	₹2.91b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	9.56
Gross Margin	44.67%
Net Profit Margin	10.84%
Debt/Equity Ratio	21.6%

How did USHAMART perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

21%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is USHAMART undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for USHAMART?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for USHAMART. This is calculated by dividing USHAMART's market cap by their current preferred multiple.
What is USHAMART's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹33.19b

USHAMART key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	9.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does USHAMART's PE Ratio compare to its peers?

USHAMART PE Ratio vs Peers

The above table shows the PE ratio for USHAMART vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.4x

Forward PE

Price-To-Earnings vs Peers: USHAMART is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (10.4x).

Price to Earnings Ratio vs Industry

How does USHAMART's PE Ratio compare vs other companies in the Indian Metals and Mining Industry?

Price-To-Earnings vs Industry: USHAMART is good value based on its Price-To-Earnings Ratio (11.4x) compared to the Indian Metals and Mining industry average (11.8x)

Price to Earnings Ratio vs Fair Ratio

What is USHAMART's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

USHAMART PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate USHAMART's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of USHAMART when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: USHAMART (₹108.85) is trading above our estimate of fair value (₹31.61)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-13.1%

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.

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Check out Usha Martin's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Usha Martin competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Usha Martin performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

56.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: USHAMART has high quality earnings.

Growing Profit Margin: USHAMART's current net profit margins (10.8%) are higher than last year (7.3%).

Past Earnings Growth Analysis

Earnings Trend: USHAMART has become profitable over the past 5 years, growing earnings by 56% per year.

Accelerating Growth: USHAMART's earnings growth over the past year (89.1%) exceeds its 5-year average (56% per year).

Earnings vs Industry: USHAMART earnings growth over the past year (89.1%) exceeded the Metals and Mining industry 76.9%.

Return on Equity

High ROE: USHAMART's Return on Equity (17.2%) is considered low.

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Financial Health

How is Usha Martin's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: USHAMART's short term assets (₹15.9B) exceed its short term liabilities (₹7.0B).

Long Term Liabilities: USHAMART's short term assets (₹15.9B) exceed its long term liabilities (₹3.4B).

Debt to Equity History and Analysis

Debt Level: USHAMART's net debt to equity ratio (11.9%) is considered satisfactory.

Reducing Debt: USHAMART's debt to equity ratio has reduced from 445% to 21.6% over the past 5 years.

Debt Coverage: USHAMART's debt is well covered by operating cash flow (43.3%).

Interest Coverage: USHAMART's interest payments on its debt are well covered by EBIT (7.4x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: USHAMART's dividend (1.84%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: USHAMART's dividend (1.84%) is low compared to the top 25% of dividend payers in the Indian market (1.9%).

Stability and Growth of Payments

Stable Dividend: USHAMART's dividend payments have been volatile in the past 10 years.

Growing Dividend: USHAMART's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.9%), USHAMART's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (56.7%), USHAMART's dividend payments are covered by cash flows.

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Management

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

4.5yrs

Average management tenure

CEO

Rajeev Jhawar (57 yo)

14.08yrs

Tenure

₹12,339,000

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 ($USD157.86K) is below average for companies of similar size in the Indian market ($USD262.17K).

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

Leadership Team

Experienced Management: USHAMART's management team is considered experienced (4.5 years average tenure).

Board Members

Experienced Board: USHAMART's board of directors are not considered experienced ( 2 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: USHAMART 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31