Usha Martin Limited jumped around 7 percent today as compared to the previous closing price. The stock opened its trading session at Rs 197 and currently trades at Rs 210 which also makes the company eligible to tick off its 10-year high figures.
Over a horizon of 1 year, it is visible that the company has been able to provide Multibagger returns with 130 percent gains to its stakeholders.
Usha Martin, incorporated in 1986, is a leading producer of specialty steel and one of the largest wire rope manufacturers globally. The company is engaged in the manufacture of wire ropes steel with captive mineral linkages of iron ore and coal and cables.
They have manufacturing facilities in Ranchi, Jharkhand, Karnataka, and some other states along with overseas manufacturing operations in Thailand, the United Kingdom, the United States, and Dubai. The company operates in three manufacturing divisions namely steel wire ropes and others.
The financials of the company are showing a reasonable purview of the stock with increasing revenues and net profits. Revenues shifted from Rs 820 crores in Q2 to Rs 834 crores in Q3. Net profits, aligned with the sense shown by revenues, have gone up from Rs 75 crores in Q2 to Rs 81 crores in Q3.
The profitability ratios too show promising returns, starting off with the returns to the equity holders going up from 11.5 percent in FY 20-21 to 18.3 percent in FY 21-22. The returns on capital employed also witnessed a shift from 13.2 percent in FY20-21 to 19.3 percent in FY 21-22.
In addition to that, the promoters of the company hold a 48.3 percent stake in the company and have pledged 54.66 percent. Further, the FIIs hold an 8.83 percent stake.
Written by Amit Madnani
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