Check Before You Invest : Usha Martin Ltd

Q: Which industry/sub-sector does Usha Martin Ltd belong to?

Usha Martin Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q: Is Usha Martin Ltd a good quality company?

Usha Martin Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Usha Martin Ltd undervalued or overvalued?

Usha Martin Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 38.16, Historic Median: 32.34. Price to Book, Current: 8.06, Historic Median: 6.96. Price to Sales, Current: 6.24, Historic Median: 4.43. EV to EBITDA, Current: 24.62, Historic Median: 21.97

Q: Is Usha Martin Ltd a good buy now?

Usha Martin Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Usha Martin Ltd?

Usha Martin Ltd revenue growth is 6.1% for FY-2025, which is below its 5-year CAGR of 9.29%, indicating slower growth.

Q: Gross Profit margin of Usha Martin Ltd?

Usha Martin Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.7% for FY-2025, which is above its 5-year median of 15.2%, indicating increasing margins.

Q: Operating Profit Margin of Usha Martin Ltd?

Usha Martin Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.43% for FY-2025, which is above its 5-year median of 14.57% indicating increasing margins.

Q: Net Profit Margin of Usha Martin Ltd?

Usha Martin Ltd Net Profit Margin is 13.92% for FY-2025, is above its 5-year median of 11.67%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 20.7, Historic Median: 15.2. Operating Profit Margin (%), Current: 19.43, Historic Median: 14.57. Net Profit Margin (%), Current: 13.92, Historic Median: 11.67

Q: Return on Asset of Usha Martin Ltd?

Usha Martin Ltd Return on Asset is 14.98%, which is above its 5-year historical median of 14.15%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Usha Martin Ltd?

Usha Martin Ltd Return on capital employed is 26.8% for FY-2025, which is in line with its 5-year historical median of 26.8%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Usha Martin Ltd

Snapshot

Q.1 Which industry/sub-sector does Usha Martin Ltd belong to?

Usha Martin Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Usha Martin Ltd a good quality company?

Usha Martin Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Usha Martin Ltd undervalued or overvalued?

Usha Martin Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	38.16	32.34
Price to Book	8.06	6.96
Price to Sales	6.24	4.43
EV to EBITDA	24.62	21.97

Q.4 Is Usha Martin Ltd a good buy now?

Usha Martin Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Usha Martin Ltd?

Usha Martin Ltd revenue growth is 6.1% for FY-2025, which is below its 5-year CAGR of 9.29%, indicating slower growth.

Q.2 Gross Profit margin of Usha Martin Ltd?

Usha Martin Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.7% for FY-2025, which is above its 5-year median of 15.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Usha Martin Ltd?

Usha Martin Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.43% for FY-2025, which is above its 5-year median of 14.57% indicating increasing margins.

Q.4 Net Profit Margin of Usha Martin Ltd?

Usha Martin Ltd Net Profit Margin is 13.92% for FY-2025, is above its 5-year median of 11.67%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	20.7	15.2
Operating Profit Margin (%)	19.43	14.57
Net Profit Margin (%)	13.92	11.67

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Usha Martin Ltd?

Usha Martin Ltd Return on Asset is 14.98%, which is above its 5-year historical median of 14.15%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Usha Martin Ltd?

Usha Martin Ltd Return on capital employed is 26.8% for FY-2025, which is in line with its 5-year historical median of 26.8%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Usha Martin Ltd?

Usha Martin Ltd Return on equity is 21.21% for FY-2025, which is in line with its 5-year historical median of 21.29%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Usha Martin Ltd?

Usha Martin Ltd Cash conversion cycle is 81 days, above its 5-year historical median of 76 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.08	1.13
ROE (%)	21.21	21.29
ROCE (%)	26.8	26.8
Cash Conversion Cycle	81 days	76 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Usha Martin Ltd?

Usha Martin Ltd Debt-to-Equity ratio is 0.08, which is lower the industry average of 0.31, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Usha Martin Ltd?

Usha Martin Ltd Debt to cash flow from operations is 0.39, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Usha Martin Ltd?

Q.1 Promoter shareholding and pledge status of Usha Martin Ltd?

Promoters hold 40.52% of the Usha Martin Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Usha Martin Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Usha Martin Ltd vs industry peers?

Usha Martin Ltd revenue CAGR is 9.29%, compared to the industry median CAGR of 7.56%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	6.1	7.6
Gross Profit Growth (%)	-0.4	19.2
Operating Profit Growth (%)	5.5	13.8
Net Profit Growth (%)	-6.2	24.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.08	1.27
ROE (%)	21.21	8.04
ROCE (%)	26.8	11.28
Cash Conversion Cycle (days)	80.57	72

Valuation & price assessment

Q.1 Stock return of Usha Martin Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 42.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	42.2%	54.9%	26.6%	59.1%

Q.2 Valuation ratios of Usha Martin Ltd vs historical?

The current P/E ratio of 38.16 is higher than its historical median of 32.34, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	38.16	32.34	17.36
Price to Book	8.06	6.96	1.63
Price to Sales	6.24	4.43	0.74
EV to EBITDA	24.62	21.97	10.05

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Check Before You Invest : Usha Martin Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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