⭐ Stock of the Week – Usha Martin Ltd.

Hello ,

Each week, we spotlight one stock that’s delivering strong returns backed by robust fundamentals and market momentum. This week’s focus on Usha Martin Ltd. is one of the world’s leading manufacturers of steel wires, strands, and wire ropes

⭐ Stock of the Week – Usha Martin Ltd.
📅 Featured in: Momentum Select 10 – Small Cap & many other GoalFi baskets
🚀 Return Since Entry (₹382): +17.4%

📊 Performance Snapshot

• CMP: ₹449

• Market Cap: ₹13,680 Cr.

• P/E: 33.8x (vs Industry 23.4x)

• ROCE: 18.8% | ROE: 15.8%

• Debt-to-Equity: 0.15 (low leverage)

• Dividend Yield: 0.67%

• Stock Price CAGR: 78% (5Y), 53% (3Y), 26% (1Y)

🏢 About the Company

Usha Martin Ltd. is one of the world’s leading manufacturers of steel wires, strands, and wire ropes. With 6 manufacturing facilities (India, Thailand, Dubai, UK, Bangladesh) and presence across 70+ countries, it holds a dominant position in the global wire rope industry. The company serves diverse industries including oil & offshore, engineering, cranes, infrastructure, elevators, and telecom.

📈 Financial Highlights

Quarterly Results (₹ Cr.)

📌 Observation: Sales stable around ₹880–890 Cr, margins moderated to ~16%, and PAT flat YoY at ₹101 Cr.

Annual Results (₹ Cr.)

🔦 Pros & Cons

✅ Pros

• Global leader in specialty wire ropes, among top 5 worldwide.

• Expanding capacity (+47,000 MTPA in Ranchi; more in pipeline till FY26).

• Diversified revenue base (45% India, 55% exports).

• Consistent OPM 16–19% and strong ROCE (18%).

⚠️ Cons

• Promoter stake declining (42.5% in Jun’25 vs 48.7% in 2022).

• Pending CBI/ED litigations create overhang.

• Valuations at premium (P/E ~34x).

📊 Fundamental Strength

• Revenue Mix (H1 FY25): Wire Rope 73%, LRPC 10%, Wire & Strand 9%, Others 8%.

• End-Use: Oil & Offshore + Engineering (40%), Crane (16%), Infra (12%).

• Exports: Europe (25%), Asia Pacific (13%), MEA (9%), Americas (8%).

👥 Shareholding (Jun 2025)

• Promoters: 42.45%

• FIIs: 14.29%

• DIIs: 11.06% (rising steadily)

• Public: 32.15%

🔎 GoalFi View

Usha Martin has emerged as a global niche leader in wire ropes with robust international presence and healthy financials. The structural demand from engineering, offshore, and infrastructure, coupled with capacity expansions, strengthens its growth runway. Rising DII confidence adds to the positive sentiment.

However, investors must weigh the premium valuations and litigation risks. In GoalFi’s Momentum Select 10 portfolio, the stock has already delivered +17% gains, showcasing its strength as a momentum-driven smallcap.

Stay calm, stay invested, and let compounding do the magic. ✨

📩 Reach us via chat.goalfi.app ✉ Email: [email protected]

📢 GoalFi Announcement

We’re expanding our GoalFi WhatsApp Community for our valued subscribers!

If you’re a subscriber but not yet part of the community, we’d be happy to welcome you in.

Get access to:
✔️ Daily research updates
✔️ Market insights
✔️ Live alerts
✔️ Direct analyst communication

📩 To join, simply message us at 👉 chat.goalfi.app

Let’s build smarter investing habits, together.
https://goalfiresearch.smallcase.com

We hope this update helps you stay informed and empowered in your investment journey. Feel free to reach out if you have any questions or need personalized advice.

Best Regards,
Team GoalFi

Disclosures: https://goalfiresearch.smallcase.com/#disclosures

Disclaimer: This newsletter is intended solely for educational and informational use. It does not constitute financial advice or serve as a promotional message.