Usha Martin
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Usha Martin's recent management commentary highlights a strategic pivot towards high-margin specialized products, which is expected to drive revenue growth and enhance profitability. The company is focusing on expanding its elevator rope capacity and scaling its OceanFibre and plasticated LRPC portfolios, which are anticipated to contribute significantly to its order book. This aligns with Vista's forecast of stable revenue growth and margins, supported by a robust balance sheet and a net cash position. The iron and steel industry is currently experiencing improving pricing power, which further bolsters Usha Martin's outlook. However, geopolitical tensions and rising input costs remain critical watchpoints. Over the next 12-24 months, Usha Martin's ability to navigate these challenges while capitalizing on domestic demand and regulatory changes will be crucial for sustaining its growth trajectory
Why We Like This Stock
- Management's shift towards high-value specialized products is expected to enhance margins and revenue growth
- The company's strong balance sheet and net cash position provide financial stability for future investments
- Improving pricing power in the iron and steel industry supports Usha Martin's revenue outlook
Things To Watch Out For
- Geopolitical tensions, particularly in the Middle East, pose risks to operational stability
- Rising raw material costs could pressure margins despite the company's pricing power
- Delays in customer approvals for specialized products may hinder growth in new business verticals
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,225 | 3,474 | 3,691 | 3,994 | 4,320 |
| Profit Before Tax (Cr.) | 550 | 525 | 657 | 773 | 819 |
| PBT Margin | 17.1% | 15.1% | 1780.0% | 19.4% | 18.9% |
| Net Profit (Cr.) | 421 | 418 | 518 | 606 | 641 |
| Earnings Per Share | 13.8 | 13.7 | 17.0 | 19.9 | 21.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Prabhudas Liladhar | ▲ Buy | 594 | 30-Jul-2026 |
Company Overview
Show Company Profile
Usha Martin Limited, together with its subsidiaries, manufactures and sells steel wires, strands, wire ropes, and cord related accessories in India and internationally. The company offers wire ropes, including crane, mining, elevator, oil and offshore, fishing, general engineering, aerial transportation, structural, and forestry ropes, as well as conveyor cord. It also provides spring, welding, fencing, ACSR, needle, mesh, fishhook, CHQ, spoke, and brush wires; LRPC strands comprising compacted, indented, un-bonded polymer coated, bonded polymer LRPC strands; and wire drawing and related machines. In addition, the company offers pre-tensioning, and post-tensioning solutions; pre-stressing solutions; anchorage accessories and equipment, hydraulic jacks, powerpacks, and grout pumps and agitators; and pre-stressing machines and accessories, as well as installation services. Further, it provides optical fiber, aerial cables, micro ducts, hybrid category, FTTH/drop, aerial copper, duct copper, and jelly filled copper cables. The company was formerly known as Usha Beltron Limited and changed its name to Usha Martin Limited in May 2003. The company was founded in 1960 and is based in Kolkata, India.