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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Usha Martin Ltd

About the Company - Usha Martin Ltd

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

Usha Martin Ltd. Share Price Update

Share PriceValue
Today₹333.90
Previous Day₹348.80

Basic Stock Data of Usha Martin Ltd

Market Cap 9,258 Cr.
Current Price 304
High / Low380/164
Stock P/E22.0
Book Value 70.6
Dividend Yield0.80 %
ROCE21.2 %
ROE18.8 %
Face Value 1.00

Data Source: screener.in

Competitors of Usha Martin Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shah Alloys Ltd 135 Cr. 68.094.2/38.8 16.10.00 %1.53 %10.1 % 10.0
Mishra Dhatu Nigam Ltd 7,626 Cr. 407548/17268.7 70.40.80 %14.6 %12.6 % 10.0
Mukand Ltd 2,475 Cr. 171213/11512.4 60.81.14 %8.29 %50.9 % 10.0
Industry Average48 Cr215.3327.0349.10.65%8.14%24.53%10

Usha Martin Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales550653615594712767759820834855814785797
Expenses483552524509612660641705707701669640640
Operating Profit661019185100107117115127154146144157
OPM %12%16%15%14%14%14%15%14%15%18%18%18%20%
Other Income986149401097137258
Interest131412121177888666
Depreciation17171818171717171717181819
Profit before tax4578696981122103100110142129144140
Tax %22%17%18%18%20%11%20%21%23%26%22%24%23%
Net Profit3768585867109827984105101110108
EPS in Rs1.232.231.901.892.203.572.692.592.753.453.313.593.53

Usha Martin Ltd Quarterly Chart

Usha Martin Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,3613,6224,0744,5614,1123,8822,0662,4882,1542,0972,6883,2683,251
Expenses2,9263,0063,3573,8453,7713,4932,2532,5121,9221,8182,3042,7542,650
Operating Profit435616717717341389-188-24232279384513601
OPM %13%17%18%16%8%10%-9%-1%11%13%14%16%18%
Other Income638982-6332120771753729754052
Interest264338440522547564921147457423026
Depreciation22326433341830830060616468706772
Profit before tax1110427-287-481-355-264-181630183346455555
Tax %42%21%50%12%11%-1%-2%126%33%20%16%23%
Net Profit78213-251-428-358-26849421152291351423
EPS in Rs0.122.590.35-8.31-14.10-11.78-8.901.5713.744.919.5611.4913.88
Dividend Payout %0%6%0%0%0%0%0%0%0%0%21%22%

Usha Martin Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)1071.43%-84.15%-2030.77%-70.52%16.36%25.14%118.28%759.18%-63.90%91.45%20.62%
Change in YoY Net Profit Growth (%)0.00%-1155.57%-1946.62%1960.25%86.87%8.78%93.14%640.90%-823.08%155.34%-70.83%

Usha Martin Ltd Growth

Compounded Sales Growth
10 Years:-1%
5 Years:10%
3 Years:15%
TTM:2%
Compounded Profit Growth
10 Years:16%
5 Years:26%
3 Years:-5%
TTM:30%
Stock Price CAGR
10 Years:26%
5 Years:57%
3 Years:121%
1 Year:76%
Return on Equity
10 Years:0%
5 Years:19%
3 Years:16%
Last Year:19%

Usha Martin Ltd 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

Usha Martin Ltd 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

Usha Martin Ltd 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%

Usha Martin Ltd Financial Efficiency Indicators Chart

Usha Martin Ltd 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

Usha Martin Ltd Shareholding Pattern Chart

No. of Usha Martin Ltd Shareholders

Usha Martin Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Quant Small Cap Fund69193211.64257.3
Quant Flexi Cap Fund11535501.2142.89
Quant Infrastructure Fund7665251.7428.5
Nippon India Nifty Smallcap 250 Index Fund1148310.414.27
Motilal Oswal Nifty Smallcap 250 Index Fund702100.392.61
SBI Nifty Smallcap 250 Index Fund583210.392.17
Motilal Oswal Nifty 500 Index Fund69590.040.26
Edelweiss Nifty Smallcap 250 Index Fund31830.390.12

Usha Martin Ltd ROCE Trend

Usha Martin Ltd EPS Trend

Usha Martin Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)11.519.564.9113.751.57
Diluted EPS (Rs.)11.519.564.9113.751.57
Cash EPS (Rs.)13.3111.557.0315.863.51
Book Value[Excl.RevalReserv]/Share (Rs.)66.6455.5846.0741.4326.67
Book Value[Incl.RevalReserv]/Share (Rs.)66.6455.5846.0741.4326.67
Revenue From Operations / Share (Rs.)107.0088.0268.6770.5281.48
PBDIT / Share (Rs.)17.7313.7210.239.3311.01
PBIT / Share (Rs.)15.5211.438.017.259.01
PBT / Share (Rs.)14.5311.066.154.825.29
Net Profit / Share (Rs.)11.109.274.8113.771.52
NP After MI And SOA / Share (Rs.)11.469.544.9013.711.57
PBDIT Margin (%)16.5615.5814.9013.2313.50
PBIT Margin (%)14.5012.9811.6610.2711.06
PBT Margin (%)13.5712.568.956.836.49
Net Profit Margin (%)10.3610.527.0019.531.86
NP After MI And SOA Margin (%)10.7110.837.1319.441.92
Return on Networth / Equity (%)17.2417.1910.6534.126.13
Return on Capital Employeed (%)19.9317.1313.6312.958.64
Return On Assets (%)11.3410.615.7416.350.68
Long Term Debt / Equity (X)0.090.110.160.272.95
Total Debt / Equity (X)0.170.210.300.474.04
Asset Turnover Ratio (%)0.930.870.660.320.25
Current Ratio (X)2.472.251.721.531.44
Quick Ratio (X)1.211.120.890.811.27
Inventory Turnover Ratio (X)2.102.211.761.691.57
Interest Coverage Ratio (X)17.899.875.493.842.96
Interest Coverage Ratio (Post Tax) (X)12.196.933.660.154.43
Enterprise Value (Cr.)6737.014313.041318.53993.514349.67
EV / Net Operating Revenue (X)2.061.600.620.461.75
EV / EBITDA (X)12.4410.304.223.4912.94
MarketCap / Net Operating Revenue (X)2.001.530.480.220.49
Price / BV (X)3.222.430.720.391.57
Price / Net Operating Revenue (X)2.001.530.480.220.49
EarningsYield0.050.070.140.850.03

Usha Martin Ltd Profitability Ratios (%)

Usha Martin Ltd Liquidity Ratios

Usha Martin Ltd Liquidity Ratios (%)

Usha Martin Ltd Interest Coverage Ratios (X)

Usha Martin Ltd Valuation Ratios

Fair Value / Intrinsic Value of Usha Martin Ltd

Fair Value: ₹294.34

The stock is overvalued by 3.18% compared to the current price ₹304

*Investments are subject to market risks

Strength and Weakness of Usha Martin Ltd

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 (2.85 cr) and profit (57.15 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 10.24 and average Dividend Yield of 12.09%.
  2. The stock has a low average ROCE of 8.67%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 64.50, which may not be favorable.
  4. The company has higher borrowings (2,487.77) compared to reserves (1,493.46), which may suggest financial risk.

Should I Buy Usha Martin Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Usha Martin Ltd:
    1. Net Profit Margin: 10.36% (Higher values are generally favorable)
      • 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: 19.93% (Industry Average ROCE: 8.14%)
      • 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. Interest Coverage Ratio (Post Tax): 12.19 (Higher values, preferably > 2, are recommended)
      • 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.
    4. Quick Ratio: 1.21 (Higher values, preferably > 1, are recommended)
      • 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.
    5. ✓ Stock P/E: 22.9 (Industry average Stock P/E: 27.1)
      • 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.
    6. ✓ Total Debt / Equity: 0.17 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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