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 Analysis

Undervalued with excellent 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

2.2%

USHAMART

10.3%

IN Metals and Mining

9.3%

IN Market


1 Year Return

-55.8%

USHAMART

-44.7%

IN Metals and Mining

-24.1%

IN Market

Return vs Industry: USHAMART underperformed the Indian Metals and Mining industry which returned -47.5% over the past year.

Return vs Market: USHAMART underperformed the Indian Market which returned -26.5% over the past year.


Shareholder returns

USHAMARTIndustryMarket
7 Day2.2%10.3%9.3%
30 Day-18.7%-14.6%-12.6%
90 Day-42.1%-39.0%-24.1%
1 Year-55.8%-55.8%-43.7%-44.7%-22.6%-24.1%
3 Year-16.0%-16.0%-39.4%-44.7%-10.9%-15.8%
5 Year-29.5%-29.5%-14.3%-28.9%0.3%-4.9%

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 (₹16.05) is trading below our estimate of fair value (₹222.83)

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 (2.6x) compared to the Metals and Mining industry average (6.5x).

PE vs Market: USHAMART is good value based on its PE Ratio (2.6x) compared to the Indian market (9.6x).


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 (0.4x) compared to the IN Metals and Mining industry average (0.6x).


Next Steps

Future Growth

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

21.4%

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?

35.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: USHAMART has high quality earnings.

Growing Profit Margin: USHAMART became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: USHAMART has become profitable over the past 5 years, growing earnings by 35.4% 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 (-7.1%).


Return on Equity

High ROE: USHAMART's Return on Equity (15.7%) is considered low.


Next Steps

Financial Health

How is Usha Martin's financial position?


Financial Position Analysis

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

Long Term Liabilities: USHAMART's short term assets (₹13.7B) exceed 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 197.2% 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 well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

3.7yrs

Average management tenure


CEO

Rajeev Jhawar (55yo)

11.92s

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 ($USD207.39K) is above average for companies of similar size in the Indian market ($USD47.89K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rajeev Jhawar
MD & Executive Director11.92yrs₹15.76m2.25% 108.3m
Pravin Jain
Joint MD & Executive Director10.17yrs₹15.86m0.0033% 157.9k
Shampa Ray
Compliance Officer & Company Secretary3.67yrs₹3.42mno data
Devadip Bhowmik
Chief Marketing Officer & VPno datano datano data
Dhrub Basu
President of Human Resourcesno datano datano data
Jayanta Bhowmik
Senior Vice President of Information Technologyno datano datano data
- Bedanand
Vice President of Commercialno datano datano data
Ranajit Chakraborty
Vice President of Power Plantno datano datano data
Anirban Sanyal
Chief Financial Officer1yrno datano data
S. Mazumder
Managing Director of Brunton Wolf Wire Ropesno datano datano data

3.7yrs

Average Tenure

55yo

Average Age

Experienced Management: USHAMART's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rajeev Jhawar
MD & Executive Director11.92yrs₹15.76m2.25% 108.3m
Pravin Jain
Joint MD & Executive Director10.17yrs₹15.86m0.0033% 157.9k
Ramni Nirula
Independent Additional Director0.75yrno datano data
Mukesh Rohatgi
Non-Executive Chairman0.25yr₹450.00kno data
Brij Jhawar
Founder & Non-Executive Director15.5yrs₹300.00k0.76% 36.8m
Vijay Bapna
Additional Independent Director0.92yrno datano data
Venkatachalam Ramakrishna Iyer
Nominee Director4.42yrs₹350.00kno data

2.7yrs

Average Tenure

68yo

Average Age

Experienced Board: USHAMART's board of directors are not considered experienced ( 2.7 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 been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

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: ₹4.815b
  • 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, crane, mining, elevator, fishing, and general engineering ropes, as well as ropes for conveyor cords, aerial haulage, and structural systems. It also manufactures a range of industrial machines, including wire drawing machines, stranding machines, wire rope closing machines, steel plant equipment, and material handling equipment; machines for manufacturing bright bars; machines for armoring and rewinding; and copper coating lines for CO2 welding wire manufacture. Further, it provides pre-stressing products and services comprising anchorage, sheathing, multipull and single pulling hydraulic jacks and pumps, and grout pumps and agitators, as well as installation services. The company was founded in 1960 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 13:08
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.