Usha Martin Limited (USHAMART) AI Stock Analysis

• Market Cap: ₹121.74B
• Dividend Yield: 0.65%
• Average Volume (3M): 79.76K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 1.00
• Revenue Growth: 6.21%
• EPS Growth: -5.42%
• Country: IN
• Employees: 2,206
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 3.50
• Shares Outstanding: 304,741,800
• 10 Day Avg. Volume: 63,544
• 30 Day Avg. Volume: 79,756
• PEG Ratio: -6.44
• Price to Book (P/B): 3.70
• Price to Sales (P/S): 2.93
• P/FCF Ratio: 57.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 17.65
• Revenue Forecast (FY): ₹37.48B

• Rating: 76 Outperform
• Price Target: ₹451.00 ▼(-0.09% Downside)
• Action: Upgraded Date: 10/23/25
• Date: Action: Upgraded 10/23/25

Usha Martin Limited's stock score is driven by strong financial performance and positive technical indicators. The company's robust revenue growth and profitability, along with a healthy balance sheet, are significant strengths. However, the stock's high valuation and low dividend yield are notable concerns. The absence of earnings call insights and corporate events does not impact the score.

Positive Factors

Balance sheet strength

A very high equity ratio (73.4%) and low debt-to-equity (0.15) provide durable financial flexibility. Conservative leverage reduces refinancing risk, supports capital spending or cyclical downturns, and preserves optionality to invest in capacity or specialty product development.

High operating margins

Sustainably elevated gross and EBIT margins indicate structural cost advantages or premium product mix (specialty ropes/wires). High operating profitability creates durable cash generation potential and cushions returns during end-market softness, supporting reinvestment and shareholder returns.

Positive cash generation

Consistent positive free cash flow that increased year-on-year and an OCF-to-net-income >1 indicate quality earnings and reliable internal funding for operations. This strengthens long-term capital allocation capacity and reduces dependence on external financing.

Negative Factors

Pressure on net margins

A declining net margin signals rising non-operating costs, tax, or below-the-line pressures that can erode shareholder returns over multiple quarters. If persistent, margin compression could limit retained earnings, capex funding, and long-term ROE improvement.

Weak free cash conversion

A FCF-to-net-income ratio below 0.5 shows limited ability to convert accounting profits into spendable cash. Structural conversion shortfalls constrain dividends, debt paydown, or reinvestment, making the business more vulnerable to capital needs during downturns.

Cyclical end-market and input exposure

Revenue tied to cyclical sectors and commodity-linked input costs creates structural demand and margin volatility. Long cycles in mining/oil and steel-price sensitivity can produce prolonged revenue swings and require robust working-capital and pricing mechanisms.

Usha Martin Limited Business Overview & Revenue Model

Company Description

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 oil and offshore, crane, mining, elevator, fishing, aerial, anchor mooring, locked coil, and general engineering ropes, as well as ropes for conveyor cords and structural systems. It also manufactures a range of industrial machines, including wire drawing machines, stranding machines, wire rope closing machines, steel plant equipment, cable machines, and material handling equipment; machines for manufacturing bright bars; machines for armoring and rewinding; and copper coating lines for CO2 welding wire manufacture. In addition, the company provides pre-tensioning & post-tensioning solutions; pre-stressing solutions; anchorage accessories & equipment, hydraulic jacks, powerpacks, and grout pumps and agitators; and pre-stressing machines & accessories, as well as installation services. Further, the company offers spring, welding, cold heading quality, auto spoke, brush, needle, and cycle spoke wires; and LRPC strands, such as bright/galvanized, compacted, indented, and bonded and un-bonded polymer coated galvanized LRPC strands, as well as manufactures wire drawing and allied machines. Additionally, it provides optical fiber, aerial cables, micro ducts, hybrid category, FTTH/drop, aerial copper, duct copper, and jelly filled copper cables. The company was founded in 1960 and is based in Kolkata, India.

How the Company Makes Money

Usha Martin primarily makes money by manufacturing and selling steel wire ropes and related wire products to industrial customers in India and international markets. Its core revenue stream is product sales, where earnings are driven by (1) volumes sold across end-use industries (e.g., mining, infrastructure, ports, oil & gas, elevators), (2) product mix, including higher-margin specialty or application-specific ropes/wires, and (3) pricing linked to steel and other input costs, often managed through contractual pricing mechanisms or periodic price revisions. Revenue is generated through a combination of domestic sales and exports, typically executed via direct sales to large industrial clients and through distributors/channel partners for broader market coverage (specific partnership details: null). Key factors influencing earnings include capacity utilization, demand cycles in customer industries, raw-material price movements and pass-through ability, competitive dynamics, and currency movements for export realizations.

Usha Martin Limited Financial Statement Overview

Summary

Usha Martin Limited demonstrates strong financial performance with robust revenue growth and profitability. The income statement shows a positive growth trajectory, although there's slight pressure on net earnings. The balance sheet is healthy with conservative leverage, and cash flow is stable but could improve in free cash conversion.

Income Statement

Usha Martin Limited exhibits strong profitability with a consistent increase in gross profit margin, achieving 49.6% in 2025 up from 49.4% in 2024. The net profit margin, however, declined slightly to 11.7% in 2025 from 13.1% in 2024, indicating some pressure on net earnings. Revenue growth has been positive, with a 7.7% increase from 2024 to 2025, showcasing robust top-line growth. The EBIT margin improved significantly to 36.0% in 2025 from 35.6% in 2024, indicating efficient cost management. Overall, the income statement reflects a strong growth trajectory and profitability, with minor concerns over net income.

Balance Sheet

The balance sheet of Usha Martin Limited is healthy, with a strong equity base as evidenced by an equity ratio of 73.4% in 2025. The debt-to-equity ratio is low at 0.15, reflecting conservative leverage practices. Return on equity is robust at 14.8% in 2025, demonstrating efficient utilization of shareholder funds. However, the total assets to liabilities balance indicates some room for improvement in liability management.

Cash Flow

The company shows a mixed cash flow performance. Despite a decrease in operating cash flow from 2024 to 2025, the free cash flow remains positive and has grown by 6.6% year-on-year. The operating cash flow to net income ratio is 1.04, suggesting strong cash generation relative to net earnings. The free cash flow to net income ratio is 0.43, indicating room for improvement in converting net income into free cash flow. Overall, cash flow stability is present but could benefit from enhanced free cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	35.51B	34.74B	32.25B	32.68B	26.88B	20.97B
Gross Profit	17.08B	17.24B	15.92B	14.61B	12.01B	9.27B
EBITDA	6.12B	5.91B	5.96B	5.20B	3.95B	2.89B
Net Income	4.04B	4.07B	4.24B	3.50B	2.91B	1.50B
Balance Sheet
Total Assets	38.54B	37.48B	33.30B	30.87B	27.43B	26.05B
Cash, Cash Equivalents and Short-Term Investments	3.86B	2.72B	1.66B	1.59B	1.62B	1.17B
Total Debt	2.64B	4.17B	3.64B	4.17B	4.11B	5.30B
Total Liabilities	8.89B	9.96B	9.46B	10.52B	10.46B	11.98B
Stockholders Equity	29.65B	27.52B	23.80B	20.31B	16.94B	14.04B
Cash Flow
Free Cash Flow	2.29B	1.77B	1.66B	692.60M	1.07B	1.77B
Operating Cash Flow	3.33B	4.22B	4.44B	2.52B	1.59B	2.14B
Investing Cash Flow	-555.80M	-2.23B	-2.88B	-1.58B	557.40M	-344.50M
Financing Cash Flow	-2.66B	-914.90M	-1.59B	-1.01B	-1.61B	-1.77B

Usha Martin Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 451.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:USHAMART, the sentiment is Neutral. The current price of 451.4 is above the 20-day moving average (MA) of 413.52, above the 50-day MA of 420.01, and above the 200-day MA of 406.63, indicating a neutral trend. The MACD of -3.32 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 27.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:USHAMART.

Usha Martin Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USHAMART	76 Outperform	₹121.74B	32.15	―	0.65%	6.21%	-5.42%
MAHSEAMLES	68 Neutral	₹74.83B	7.74	―	1.82%	0.81%	-7.11%
VESUVIUS	64 Neutral	₹98.87B	36.94	―	0.30%	16.07%	-6.83%
JINDALPOLY	62 Neutral	₹42.53B	-5.55	―	1.18%	19.84%	-115.35%
SUNFLAG	62 Neutral	₹38.32B	20.39	―	0.28%	6.44%	36.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAIBALAJI	53 Neutral	₹57.64B	139.02	―	―	-13.11%	-69.18%

Usha Martin Limited Corporate Events

Usha Martin Publishes Q3 and 9M FY26 Earnings Presentation

Usha Martin Limited has released its earnings presentation for the third quarter and nine months ended 31 December 2025, providing an overview of its unaudited financial results for Q3 and 9M FY26. The presentation, filed with Indian stock exchanges and the Luxembourg Stock Exchange and made available on the company’s website, forms part of its ongoing disclosure obligations to keep shareholders and market participants informed about its financial performance and operational trajectory.

Usha Martin Delivers Strong Margin-Led Growth in Q3 FY26 Results

Usha Martin Limited reported a solid set of unaudited consolidated results for the quarter ended 31 December 2025, with revenue from operations rising 6.6% year-on-year to Rs. 917.1 crore. Profitability showed stronger momentum than topline growth: operating EBITDA grew 23.3% to Rs. 175.9 crore, lifting the operating EBITDA margin to 19.2% from 16.6%, while profit before tax before exceptional items increased 28.5% to Rs. 151.1 crore and profit after tax advanced 16.7% to Rs. 107.7 crore, translating into basic EPS of Rs. 3.53 for the quarter. For the nine-month period, the company also delivered steady growth in revenue and earnings, indicating improved operating efficiency and margin expansion, which supports its positioning as a resilient, higher-margin specialty wire rope manufacturer and may be viewed positively by investors tracking its earnings quality and international operations.