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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Usha Martin Ltd

Basic Stock Data

Last Updated: June 14, 2024, 9:35 am

Market Cap 12,485 Cr.
Current Price 410
High / Low424/253
Stock P/E29.4
Book Value 78.1
Dividend Yield0.61 %
ROCE22.1 %
ROE19.2 %
Face Value 1.00
PEG Ratio119.40

Competitors of Usha Martin Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ashnisha Industries Ltd 62.1 Cr. 6.1525.7/5.7364.7 6.000.00 %1.84 %1.64 % 1.00
Shah Alloys Ltd 131 Cr. 66.194.2/38.8 5.690.00 %5.63 %43.9 % 10.0
Mukand Ltd 2,446 Cr. 169213/12023.8 63.81.19 %10.8 %11.6 % 10.0
Jindal Stainless Ltd 66,896 Cr. 812841/31725.5 1740.18 %22.3 %19.9 % 2.00
Industry Average17,383.78 Cr263.3128.5062.370.34%10.14%19.26%5.75

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales653615594712767759820834855814785797829
Expenses552524509612660641705707701669640640678
Operating Profit1019185100107117115127154146144157152
OPM %16%15%14%14%14%15%14%15%18%18%18%20%18%
Other Income8614940109713725814
Interest14121211778886667
Depreciation17181817171717171718181923
Profit before tax78696981122103100110142129144140136
Tax %17%18%18%20%11%20%21%23%26%22%24%23%22%
Net Profit68585867109827984105101110108106
EPS in Rs2.231.901.892.203.572.692.592.753.453.313.593.533.49

Last Updated: June 10, 2024, 5:20 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:19 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales3,6224,0744,5614,1123,8822,0662,4882,1542,0972,6883,2683,225
Expenses3,0063,3573,8453,7713,4932,2532,5121,9221,8182,3042,7542,627
Operating Profit616717717341389-188-24232279384513599
OPM %17%18%16%8%10%-9%-1%11%13%14%16%19%
Other Income8982-6332120771753729754053
Interest338440522547564921147457423025
Depreciation26433341830830060616468706777
Profit before tax10427-287-481-355-264-181630183346455550
Tax %21%50%12%11%-1%-2%126%33%20%16%23%23%
Net Profit8213-251-428-358-26849421152291351424
EPS in Rs2.590.35-8.31-14.10-11.78-8.901.5713.744.919.5611.4913.91
Dividend Payout %6%0%0%0%0%0%0%0%0%21%22%20%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-84.15%-2030.77%-70.52%16.36%25.14%118.28%759.18%-63.90%91.45%20.62%20.80%
Change in YoY Net Profit Growth (%)0.00%-1946.62%1960.25%86.87%8.78%93.14%640.90%-823.08%155.34%-70.83%0.18%

Growth

Compounded Sales Growth
10 Years:-2%
5 Years:5%
3 Years:15%
TTM:-1%
Compounded Profit Growth
10 Years:44%
5 Years:53%
3 Years:42%
TTM:21%
Stock Price CAGR
10 Years:26%
5 Years:70%
3 Years:97%
1 Year:41%
Return on Equity
10 Years:3%
5 Years:20%
3 Years:18%
Last Year:19%

Last Updated: June 14, 2024, 4:11 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital31313131313131313131313131
Reserves1,7991,9051,9721,7281,2949146977511,1971,3731,6632,0002,122
Borrowings2,5483,1933,7323,9934,4724,3644,0733,565620530411417423
Other Liabilities2,3122,7182,9142,5562,1402,4232,6462,645696649625627570
Total Liabilities6,6907,8468,6498,3077,9367,7317,4456,9922,5442,5822,7303,0753,145
Fixed Assets3,2173,6415,5005,4775,3025,0314,862935956932913952956
CWIP7721,29437313214712111313334538139210
Investments0000463739424448566667
Other Assets2,7012,9112,7752,6982,4412,5422,4326,0011,5111,5571,7221,9171,913
Total Assets6,6907,8468,6498,3077,9367,7317,4456,9922,5442,5822,7303,0753,145

Reserves and Borrowings Chart

Usha Martin Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 5744291,144729856686914974212214159252
Cash from Investing Activity -878-810-1,050-563-385-29-35-32,942-3457-155
Cash from Financing Activity 35624318-266-491-663-872-973-3,105-177-161-101
Net Cash Flow51-138113-100-20-57-250255-4

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow613.00714.00714.00337.00385.00-192.00-27.00-388.00-251.00-27.0096.00235.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days4658473955641194851575656
Inventory Days402454400378241261350156183209196180
Days Payable397465429397288362561781081137260
Cash Conversion Cycle514718207-37-92126126153180175
Working Capital Days2518-28-4-40-49-1171996122123116
ROCE %7%9%9%6%1%3%-4%-1%22%13%18%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters50.87%50.50%50.13%49.79%49.26%49.04%48.70%48.30%48.27%47.87%47.51%47.41%
FIIs8.18%8.41%8.57%8.60%8.69%8.68%8.89%8.83%9.50%9.29%12.03%12.94%
DIIs0.06%0.05%0.05%0.05%0.05%0.06%0.04%0.83%2.12%3.44%3.86%3.45%
Public40.89%41.03%41.24%41.56%42.00%42.22%42.37%42.04%40.12%39.38%36.60%36.20%
No. of Shareholders49,39468,33063,37965,07462,39765,58466,90166,04766,39371,45476,48281,195

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund6,919,3211.64257.358,3212024-06-1211764.2%
Quant Flexi Cap Fund1,153,5501.2142.8958,3212024-06-121877.93%
Quant Infrastructure Fund766,5251.7428.558,3212024-06-121214.32%
Nippon India Nifty Smallcap 250 Index Fund114,8310.414.2758,3212024-06-1296.89%
Motilal Oswal Nifty Smallcap 250 Index Fund70,2100.392.6158,3212024-06-1220.39%
SBI Nifty Smallcap 250 Index Fund58,3210.392.1758,3212024-06-120%
Motilal Oswal Nifty 500 Index Fund6,9590.040.2658,3212024-06-12-88.07%
Edelweiss Nifty Smallcap 250 Index Fund3,1830.390.1258,3212024-06-12-94.54%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)13.9211.519.564.9113.75
Diluted EPS (Rs.)13.9211.519.564.9113.75
Cash EPS (Rs.)16.0013.3111.557.0315.86
Book Value[Excl.RevalReserv]/Share (Rs.)78.0666.6455.5846.0741.43
Book Value[Incl.RevalReserv]/Share (Rs.)78.0666.6455.5846.0741.43
Revenue From Operations / Share (Rs.)105.61107.0088.0268.6770.52
PBDIT / Share (Rs.)20.9217.7313.7210.239.33
PBIT / Share (Rs.)18.4015.5211.438.017.25
PBT / Share (Rs.)17.5914.5311.066.154.82
Net Profit / Share (Rs.)13.4811.109.274.8113.77
NP After MI And SOA / Share (Rs.)13.8811.469.544.9013.71
PBDIT Margin (%)19.8016.5615.5814.9013.23
PBIT Margin (%)17.4214.5012.9811.6610.27
PBT Margin (%)16.6513.5712.568.956.83
Net Profit Margin (%)12.7610.3610.527.0019.53
NP After MI And SOA Margin (%)13.1410.7110.837.1319.44
Return on Networth / Equity (%)17.8117.2417.1910.6534.12
Return on Capital Employeed (%)20.6919.9317.1313.6312.95
Return On Assets (%)12.7311.3410.615.7416.35
Long Term Debt / Equity (X)0.080.090.110.160.27
Total Debt / Equity (X)0.120.170.210.300.47
Asset Turnover Ratio (%)1.010.930.870.660.32
Current Ratio (X)2.902.472.251.721.53
Quick Ratio (X)1.461.211.120.890.81
Inventory Turnover Ratio (X)1.832.102.211.761.69
Interest Coverage Ratio (X)25.7817.899.875.493.84
Interest Coverage Ratio (Post Tax) (X)17.6112.196.933.660.15
Enterprise Value (Cr.)9856.706737.014313.041318.53993.51
EV / Net Operating Revenue (X)3.062.061.600.620.46
EV / EBITDA (X)15.4312.4410.304.223.49
MarketCap / Net Operating Revenue (X)3.012.001.530.480.22
Price / BV (X)4.093.222.430.720.39
Price / Net Operating Revenue (X)3.012.001.530.480.22
EarningsYield0.040.050.070.140.85

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 443.55

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 8.18% compared to the current price 410

Intrinsic Value: 444.64

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 8.45% compared to the current price ₹410

Last 5 Year EPS CAGR: 0.25%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 23.42, which is a positive sign.
  2. The company has shown consistent growth in sales (2.83 cr) and profit (60.58 cr) over the years.
  1. The stock has a low average ROCE of 8.67%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 64.50, which may not be favorable.
  3. The company has higher borrowings (2,477.83) compared to reserves (1,486.92), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Usha Martin Ltd:
    1. Net Profit Margin: 12.76%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 20.69% (Industry Average ROCE: 10.14%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.81% (Industry Average ROE: 19.26%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 17.61
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.46
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 29.4 (Industry average Stock P/E: 27.95)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.12
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Usha Martin Ltd. is a Public Limited Listed company incorporated on 22/05/1986 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L31400WB1986PLC091621 and registration number is 091621. Currently company belongs to the Industry of Steel - Alloys/Special. Company’s Total Operating Revenue is Rs. 1810.05 Cr. and Equity Capital is Rs. 30.54 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Alloys/Special2A, Shakespeare Sarani, Kolkata West Bengal 700071investor@ushamartin.co.in
http://www.ushamartin.com
Management
NamePosition Held
Mr. Vijay Singh BapnaChairman & Ind.Dire (Non-Exe)
Mr. Rajeev JhawarManaging Director
Mr. Sumit Kumar ModakWhole Time Director
Mr. Tapas GangopadhyayNon Executive Director
Mr. V Ramakrishna IyerIndependent Director
Mr. Sethurathnam RaviIndependent Director
Mrs. Ramni NirulaIndependent Director

FAQ

What is the latest fair value of Usha Martin Ltd?

The latest fair value of Usha Martin Ltd is ₹443.55.

What is the Market Cap of Usha Martin Ltd?

The Market Cap of Usha Martin Ltd is 12,485 Cr..

What is the current Stock Price of Usha Martin Ltd as on 14 June 2024?

The current stock price of Usha Martin Ltd as on 14 June 2024 is ₹410.

What is the High / Low of Usha Martin Ltd stocks in FY 2024?

In FY 2024, the High / Low of Usha Martin Ltd stocks is 424/253.

What is the Stock P/E of Usha Martin Ltd?

The Stock P/E of Usha Martin Ltd is 29.4.

What is the Book Value of Usha Martin Ltd?

The Book Value of Usha Martin Ltd is 78.1.

What is the Dividend Yield of Usha Martin Ltd?

The Dividend Yield of Usha Martin Ltd is 0.61 %.

What is the ROCE of Usha Martin Ltd?

The ROCE of Usha Martin Ltd is 22.1 %.

What is the ROE of Usha Martin Ltd?

The ROE of Usha Martin Ltd is 19.2 %.

What is the Face Value of Usha Martin Ltd?

The Face Value of Usha Martin Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Usha Martin Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE