Mehabe score: 5 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
Usha Martin is engaged in Business of Manufacture and sale of steel wire rods, bright bar, rolled products, billets, pig iron and allied products. Its Manufacture and sale of steel wires, strands, wire ropes, cord, related accessories, etc.Site:USHAMARTMain Symbol:USHAMART
Stock trades at 56.0, above its 50dma 51.75. It also trades above its 200dma 39.48. The stock remains bullish on techicals
The 52 week high is at 60.90 and the 52week low is at 17.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 18.62% CAGR over last 5 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -0.37%
-The company has delivered a poor sales growth of -12.60% over past five years.
-Promoters have pledged 52.27% of their holding.
Competition
– The industry trades at a mean P/E of 15.8x. Apollo Tricoat trades at the industry’s max P/E of 42.33x. USHAMART trades at a P/E of 11.4x
– Industry’s mean G-Factor is 6.1 while the mean Piotski score is 8.0. USHAMART has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is -0.6%. The max 1- month return was given by Usha Martin: a return of 2.85 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 653.0 cr compared to Rs 515.0 cr for period ended Mar 2020, a rise of 26.8%
Operating Profits reported at Rs 101.0 cr for period ended Mar 2021 vis-vis 31.0 for period ended Mar 2020 .
Operating Margins expanded 944.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.23 compared to Rs 1.23 for previous quarter ended Dec 2020 and Rs 0.01 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2097.0 cr for period ended Mar 2021 vis-vis sales of Rs 2154.0 cr for the period ended Mar 2020, a fall of 2.7%. The 3 year sales cagr stood at 0.5%.
Operating margins expanded to 13.0% for period ended Mar 2021 vis-vis 11.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 150.0 cr for period ended Mar 2021 vis-vis sales of Rs 419.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 214.0 cr for period ended Mar 2021 vis-vis Rs 212.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 215% on a 1 Year basis vis-vis a return of 31% over the last 3 Years. – The compounded sales growth on a TTM bassis is -3% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -63% vis-vis a compounded profit growth of 37% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 8.41% vis-vis 8.18% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 41.03% vis-vis 40.89% for Mar 2021
Conclusion
– has reduced debt.
– has delivered good profit growth of 18.62% CAGR over last 5 years – Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -0.37%
-The company has delivered a poor sales growth of -12.60% over past five years.
-Promoters have pledged 52.27% of their holding.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 51.75 and is trading at 56.0, thus bullish price action wise.
