The shares of Usha Martin Limited opened at Rs 167.75 levels and gained as much as 9 percent in the early hours to climb up to an intraday high of Rs 209 on Thursday’s session. The stock became one of the favourite picks of analysts in the Tamilnadu Investors’ Association (TIA) summit that was held in Chennai, India a few days ago.
Usha Martin is a leading producer of steel wires and ropes with applications in diverse sectors like Oil & Offshore, Mining, Crane, Elevator, Infrastructure, etc. The company has 6 manufacturing facilities spread across 6 continents.
The shares of the company have gained more than 30 percent in the past six months and on a yearly basis, the stock has gained more than 96 percent.
The Company is also engaged in the manufacturing of high-quality wires, low relaxation prestressed concrete steel strands (LRPC), bespoke end-fittings, accessories, and related services.
Usha Martin posted a total revenue of Rs 820.22 Crore, an increase of 38 percent YoY from Rs 594.06 Crore and 8 percent QoQ from Rs 758.69 Crore.
Their profit after tax in the quarter under review stood at Rs 75.14 Crore which jumped by 32 percent from Rs 56.71 Crore on a YoY basis. From the previous quarter, their profits declined from Rs 79.28 Crore.
The company has a Capex plan of Rs 310 crore during FY22 expected to be completed by Q3FY24. The objectives of the plan include the expansion of capacity by 47,000 over FY22 volumes by improving the infrastructure and enhancing the R&D and testing facilities.
The small-cap company has a market capitalization of Rs 5,115 Crire and a dividend yield of 1.49%. The promoters of the company hold a 48.3 percent stake and have pledged 54.66 percent of it.
Written by Anoushka Roy
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
