Risk factor
Resilient to price shocks
Profitability factor
Very strong margins and returns
About
Usha Martin Limited, an Indian enterprise founded in 1960 and headquartered in Kolkata, operates globally as a producer and supplier of a diverse range of steel wire products. The company's core business involves manufacturing and distributing steel wires, strands, and an extensive array of wire ropes along with their associated accessories, serving both domestic Indian markets and international clients. Their wire rope offerings are comprehensive, encompassing specialized types for the oil and offshore sectors, cranes, mining operations, elevators, fishing, aerial installations, anchor mooring, and general engineering. They also provide locked coil ropes, ropes for conveyor cords, and solutions for structural systems. Beyond finished wire products, Usha Martin designs and fabricates a wide spectrum of industrial machinery. This includes equipment for wire drawing, stranding, and closing wire ropes, as well as steel plant machinery, cable manufacturing equipment, and material handling systems. They also provide specialized machines for bright bar production, armoring and rewinding processes, and copper coating lines specifically for CO2 welding wire. Furthermore, the company delivers comprehensive pre-tensioning and post-tensioning solutions. This encompasses not only the core pre-stressing methods but also a suite of associated hardware such as anchorage accessories, hydraulic jacks, powerpacks, grout pumps, agitators, and dedicated pre-stressing machines, alongside professional installation services. Their specialized wire products include spring, welding, cold heading quality, auto spoke, brush, needle, and cycle spoke varieties. They also offer Low Relaxation Pre-stressed Concrete (LRPC) strands, available in bright, galvanized, compacted, indented, and both bonded and un-bonded polymer-coated galvanized finishes. In an additional offering, Usha Martin provides a diverse portfolio of cables, including optical fiber, aerial, micro duct, hybrid, FTTH/drop, aerial copper, duct copper, and jelly-filled copper variants.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'expensive' on EV/EBI
Target Price
The average target price of USHAMART.NS is 573 and suggests 15.8% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation t