Usha Martin Ltd Stock Analysis

BSE: 517146 | NSE: USHAMART | Steel & Iron Products | Small Cap

BSE Share Price 02-Dec-2022 18:01
133.95 -0.65 (-0.48%)

DeciZen - Make an Informed Decision on Usha Martin

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Usha Martin Price Chart

P/E Ratio (SA) :
17.48
Market Cap :
4,082 Cr.
52-wk low :
80.6
52-wk high :
164.7
Bole Toh?

1. Is Usha Martin Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Usha Martin Ltd is a average quality company.

2. Is Usha Martin Ltd undervalued or overvalued?

The key valuation ratios of Usha Martin Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Usha Martin Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Usha Martin Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Usha Martin:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Usha Martin Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 5.7%5.9%2.8%-0.3%0.4%2.2%12.2%19.8%13.8%20.1%-
Value Creation Index -0.6-0.6-0.8-1.0-1.0-0.8-0.10.4-0.00.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,0453,2873,7463,4323,2474,7345,6501,4581,3461,8102,021
YoY Gr. Rt. %-8%14%-8.4%-5.4%45.8%19.3%-74.2%-7.7%34.5%-
Adj EPS 0.5-0.4-7.1-12.7-12-10.11.712.83.46.27.7
YoY Gr. Rt. %--191.5%NANANANANA650.9%-73.2%80.5%-
BVPS (₹) 50.75039.326.7155.77.620.223.430.431.7
Adj Net Profit 14.3-13.2-218-386-364-30752391105189233
Cash Flow from Ops. 3871,047644766605884969148111185-
Debt/CF from Ops. 7.73.45.75.46.84.33.42.42.60.9-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -5.6%-11%-31.6%34.5%
Adj EPS 33.2%NA53.7%80.5%
BVPS -5.515.35929.9
Share Price 14.8% 43.1% 66.8% 56%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 0.9-0.9-15.8-37.3-56.1-97.425.792.515.823.124.7
Op. Profit Mgn % 18.220.316.69.911.89.510.27.114.213.513.6
Net Profit Mgn % 0.5-0.4-5.8-11.3-11.2-6.50.926.87.810.511.6
Debt to Equity 1.92.33.15.1921.914.40.60.40.20.1
Working Cap Days 252240200200200148229753231173144
Cash Conv. Cycle 153129979893431961687271

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 53.71%

Sales growth is good in last 4 quarters at 24.32%

Return on Equity has declined versus last 3 years average to 24.70%

Sales growth has been subdued in last 3 years -31.58%

Latest Financials - Usha Martin Ltd.

Standalone Consolidated
TTM EPS (₹) 7.7 11.1
TTM Sales (₹ Cr.) 2,021 3,058
BVPS (₹.) 31.7 58
Reserves (₹ Cr.) 935 1,737
P/BV 4.23 2.31
PE 17.48 12.12
From the Market
52 Week Low / High (₹) 80.55 / 164.65
All Time Low / High (₹) 0.50 / 164.65
Market Cap (₹ Cr.) 4,082
Equity (₹ Cr.) 30.5
Face Value (₹) 1
Industry PE 10.1

Management X-Ray of Usha Martin :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *49.3349.9750.9751.9052.2752.6653.0253.5953.8354.21
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Usha Martin

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Usha Martin Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Usha Martin on 02-Dec-2022 18:01 is : 133.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 02-Dec-2022 18:01 the market cap of Usha Martin stood at ₹ 4,082.
The latest PE ratio of Usha Martin as of 02-Dec-2022 18:01 is 17.48.
The latest PB ratio of Usha Martin as of 02-Dec-2022 18:01 is 4.23
The 52-week high of Usha Martin is ₹ 164.7 and the 52-week low is ₹ 80.55.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Usha Martin is ₹ 2,021 ( Cr.) .

About Usha Martin Ltd

Usha Martin started in 1961 in Ranchi, Jharkhand as a wire rope manufacturing company, today the Usha Martin Group is a $1 billion conglomerate with a global presence.  The group has set new standards in the manufacture of wire rods, bright bars, steel wires, speciality wires, wire ropes, strand, conveyor cord, wire drawing and cable machinery.  With continuous growth in both the domestic and international markets, Usha Martin, the Group’s flagship company has emerged as India’s largest and the world’s second largest steel wire rope manufacturer. 

In 1979, the company set up a steel plant with wire rod rolling mill at Jamshedpur, to benefit from business integration. This ensured a steady supply of steel for the manufacture of value added products. Today, the Jamshedpur unit has a truly integrated speciality steel manufacturing facility of 700,000 MT per annum.  Out of which, about 35% is consumed internally by its plant in Ranchi, Hoshiarpur & Bangkok, producing steel wire, steel strand, steel cords, bright bar and steel wire ropes.  All its manufacturing facilities are ISO 9000 certified and the steel plant was India’s first to receive the TPM Excellence Award from JIPM, Japan.   

With local success come global aspirations. Currently, the company has overseas manufacturing operations in Thailand, UK and Dubai. Besides a vast network of distribution centres and marketing offices spread across the globe to support an ever growing worldwide customer base. The company exports over 60% of the wire rope output and about 20% of the total wire rods produced.

Usha Martin’s future plans are focused on its operation in Jharkhand - a state rich in mineral resources. Future priorities include product mix enrichment, cost reduction and infrastructural improvements. Already flourishing in its recent foray into mining operations, the company is planning to invest in its iron ore and coal mines, sinter plant, pellet plant, power plants, while also enhancing its steel making and value added products capacity with an investment of Rs 2,100 crore. 

Products of the company

  • Coil & Bar
  • Bright Bar
  • Ropes
  • Wire & Strands
  • Structural
  • Sling
  • Cord
  • Prestressing
  • Machinery
  • Tele Cables

Milestones

  • 1960- Usha Martin Industries (UMIL) set up a wire rope plant with a capacity of 3600 tonnes per annum (TPA) located at Tatisilwai, Ranchi in collaboration with Martin Black & Company (Wire Ropes) of UK.
  • 1962- UMIL started its production of wire and wire ropes.  
  • 1965- In order to foray in to manufacturing of rope accessories and splicing equipment, the company collaborated with CCL Systems of UK to form Usha Ismal (UIL) located at Rachi. Later in 1990 the company merged with UMIL.  
  • 1971- The company formed Usha Alloys & Steels (UASL) to manufacture steel billets at Adityapur, Jamshedpur. This company was merged with UMIL in 1988.
  • 1975- UMIL set up a machinery division at Bangalore for manufacture of wire drawing and allied products in collaboration Marshall Richards Barcro, UK. UASL acquired an ongoing rolling mill at Agra.  
  • 1979- UASL set up a wire rod rolling mill at Jamshedpur to supply wire rods for its wire rope plant.
  • 1980- A joint venture company Usha Siam Steel Industries was formed in Thailand for manufacture of wire, wire ropes and auto cables.
  • 1986- Usha Beltron (UBL) was incorporated as a joint venture between Usha Martin Industries and Bihar State Electronics Development Corporation, AEG Kabel, Germany (now Kabelrhydt and a member of the Alcatel group) and DEG, Germany to manufacture jelly filled telephone cables (JFTC).
  • 1991- Usha Martin completed its supplies of the parallel wire stay cables for the Second Hooghly Bridge at Kolkata and established the company's capability for manufacturing sophisticated special cables. 
  • 1994- Usha Martin Europe was formed in joint venture with Exim Bank of India to create worldwide marketing and distribution set up for export of wire ropes.
  • 1995- UMIL set up a mini blast furnace at Jamshedpur to reduce cost and improve productivity.
  • 1996- UMIL set up a wire rod mill at Jamshedpur to produce higher weight coils for better productivity.
  • 1998- UMIL was merged with UBL.
  • 2000- The company’s IT division, was demerged and was named Usha Martin Infotech (UMITL). UBL established UM Cables as its wholly owned subsidiary to set up a green field JFTC and OFC plant at Silvassa. Commissioning of 25 MW thermal power plant at Jamshedpur for captive consumption.  UBL also acquired majority stake Usha Siam Steel Industries, Bangkok which is in business of wire ropes.
  • The Company also acquired 80% stake in Brunton Shaw, UK, from Carclo Group.  2001- Company set up Usha Martin Singapore (Pty.) to set up a distribution facility at Singapore for wire ropes. In order to increase the capacity the company set up second unit in at Jamshedpur
  • 2003- The company diluted its rolling mill division at Agra with an intention to focus on core business. The same year the name was changed to Usha Martin. Usha Martin International entered into a joint venture with Gustav Wolf of West Germany to form Brunton Wolf Wire Ropes FZCO located in Dubai. The company obtained prestigious order for wire ropes for a period of 3 years from OTIS Elevators for world wide supplies. The company successfully created new facilities by modifying the cable plant to manufacture value added products such as bright bars, special wires and conveyor cords. 
  • 2004- The company started its DRI and WHRB power plant at its steel division in Jamshdedpur. 
  • 2005- The company singed an MOU with Joh. Pengg for manufacturing of the speciality oil tempered spring steel wire. The company acquired JCTL’s steel division.Usha Martin incorporated of Brunton Shaw America Inc as a new subsidiary of the company. 
  • 2007- The company acquired De Ruiter Staalkabel B.V. located at Netherlands engaged in business of distribution and rigging. The company started wire rope plant in Houston, US.
  • 2010- Usha Martin raises Rs 468.15 crore through QIP
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