NSEI:USHAMART

Stock Analysis Report

Executive Summary

Usha Martin Limited, together with its subsidiaries, manufactures and sells specialty and value added steel products in India and internationally.

Snowflake

Fundamentals

Good value with mediocre balance sheet.

Risks

  • Usha Martin is not covered by any analysts.

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


Market Performance


7 Day Return

-4.8%

NSEI:USHAMART

4.1%

IN Metals and Mining

1.5%

IN Market


1 Year Return

-21.8%

NSEI:USHAMART

-35.8%

IN Metals and Mining

-11.2%

IN Market

USHAMART outperformed the Metals and Mining industry which returned -35.8% over the past year.

USHAMART underperformed the Market in India which returned -11.2% over the past year.


Share holder returns

USHAMARTIndustryMarket
7 Day-4.8%4.1%1.5%
30 Day6.5%2.7%1.0%
90 Day-16.4%-12.3%-5.6%
1 Year-21.8%-21.8%-33.1%-35.8%-9.5%-11.2%
3 Year103.5%103.5%15.2%2.8%19.7%13.7%
5 Year-25.7%-25.7%-4.7%-20.4%34.6%21.9%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Usha Martin's share price is below the future cash flow value, and at a moderate discount (> 20%).

Usha Martin's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Usha Martin is good value based on earnings compared to the IN Metals and Mining industry average.

Usha Martin is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Usha Martin, we can't assess if its growth is good value.


Price Based on Value of Assets

Usha Martin is overvalued based on assets compared to the IN Metals and Mining industry average.


Next Steps

Future Growth

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

12.9%

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?

15.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Usha Martin's year on year earnings growth rate has been positive over the past 5 years.

Usha Martin has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Usha Martin has become profitable in the last year making it difficult to compare the IN Metals and Mining industry average.


Return on Equity

Whilst Usha Martin has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Usha Martin used its assets less efficiently than the IN Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Usha Martin has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Usha Martin's financial position?


Financial Position Analysis

Usha Martin is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Usha Martin's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Usha Martin's level of debt (387.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (183.6% vs 387.9% today).

Debt is well covered by operating cash flow (30.8%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Usha Martin's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Usha Martin's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Usha Martin has not reported any payouts.

Unable to verify if Usha Martin's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Usha Martin has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Rajeev Jhawar (55yo)

11.3yrs

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

Rajeev's remuneration is higher than average for companies of similar size in India.

Rajeev's compensation has increased in line with Usha Martin recently becoming profitable.


Management Age and Tenure

3.1yrs

Average Tenure

63yo

Average Age

The tenure for the Usha Martin management team is about average.


Board Age and Tenure

2.8yrs

Average Tenure

67yo

Average Age

The average tenure for the Usha Martin board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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


Management Team

  • Rajeev Jhawar (55yo)

    MD & Executive Director

    • Tenure: 11.3yrs
    • Compensation: ₹15.76m
  • Anirban Sanyal

    Chief Financial Officer

    • Tenure: 0.4yrs
  • Shampa Ray

    Compliance Officer & Company Secretary

    • Tenure: 3.1yrs
    • Compensation: ₹3.42m
  • Dhrub Basu (61yo)

    President of Human Resources

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

    Joint MD & Executive Director

    • Tenure: 9.6yrs
    • Compensation: ₹15.86m
  • S. Mazumder

    Managing Director of Brunton Wolf Wire Ropes

    • Tenure: 0yrs
  • Amitava Sircar (65yo)

    Chief Operating Officer of Steel Division

    • Tenure: 0yrs
    • Compensation: ₹13.78m
  • Jayanta Bhowmik

    Senior Vice President of Information Technology

    • Tenure: 0yrs
  • S. Birla

    Managing Director of Usha Siam Steel Industries Public Co. Ltd.

    • Tenure: 0yrs
  • S. B. Sharma

    VP & Unit Head of Ranchi

    • Tenure: 0yrs

Board Members

  • Ramni Nirula (67yo)

    Independent Additional Director

    • Tenure: 0.2yrs
  • Mukesh Rohatgi (69yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: ₹450.00k
  • Rajeev Jhawar (55yo)

    MD & Executive Director

    • Tenure: 11.3yrs
    • Compensation: ₹15.76m
  • Prashant Jhawar (56yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: ₹250.00k
  • Brij Jhawar (82yo)

    Founder & Non-Executive Director

    • Tenure: 0yrs
    • Compensation: ₹300.00k
  • Pravin Jain (65yo)

    Joint MD & Executive Director

    • Tenure: 9.6yrs
    • Compensation: ₹15.86m
  • Vijay Bapna (71yo)

    Additional Independent Director

    • Tenure: 0.3yrs
  • Venkatachalam Ramakrishna Iyer

    Nominee Director

    • Tenure: 3.8yrs
    • 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: 1961
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹7.939b
  • 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 specialty and value added steel 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 Analysis2019/09/15 12:56
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
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.