ftInvstr
USHAMART · Basic Materials ₹512.0 -0.97% Mkt Cap ₹15628 Cr overvalued

USHAMART

Basic Materials Steel
₹512.0
-0.97% today · 30d -0.56%
as of 2026-09-04
Price · Daily Candles
“Usha Martin's Profits Surge as DIIs Bolster Holdings, FCF Outlook Presents a Cautionary Tale.”
Usha Martin has demonstrated strong quarterly performance, with net profit up 46.7% YoY to ₹148 Cr and operating profit up 45.93% YoY to ₹238 Cr in Q4 2026. Domestic Institutional Investors (DIIs) have increased their stake by 0.69% QoQ to 14.81%. However, ML predictions for Free Cash Flow (FCF) growth are weak, ranging from -9.92% to -42.29%, suggesting potential future challenges despite current profitability.
BULL CASE
+Quarterly net profit rose significantly by 46.7% YoY to ₹148 Cr in Q4 2026.
+Operating profit showed robust growth of 45.93% YoY, reaching ₹238 Cr with an OPM of 23.68% in Q4 2026.
+Domestic Institutional Investors (DIIs) increased their shareholding by 0.69% QoQ to 14.81% in Q4 2026.
+The stock has delivered strong price performance, up 44.52% over the last year and 8.75% in the last month.
+The company's ROCE stands at 20.0%, indicating efficient capital utilization.
BEAR CASE
ML predictions for FCF growth are weak, with a 1-year FCF growth rank of 0.0 (weak) for both rolling 4-year and stable 7-year models, and 0.138 (weak) for recent 2-year.
Sales growth predictions are neutral, with 1-year sales growth ranks ranging from 0.566 to 0.669.
Despite positive profit growth, revenue growth for Q4 2026 was a more modest 9.28% YoY to ₹979 Cr.
The stock is trading at a PE of 33.48, higher than peers like Lloyds Metals (28.33) and NMDC (12.21).
⟳ What Changed
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹1033 Cr
+16.44% YoY
NET PROFIT
₹142 Cr
+40.9% YoY
OPM
20.79%
+3.06pp YoY
EPS
₹4.66
PE 33.48
Intrinsic value · DCF ₹298.67 · Margin of safety -41.7% (overvalued) · FCF yield 2.93%
◇ Sector Position
Usha Martin, with a PE of 33.48 and ROCE of 20.0%, trades at a potentially higher valuation than some peers like Lloyd Metals (PE 28.33, ROCE 27.44) and NMDC (PE 12.21, ROCE 31.08), but below larger players like JSW Steel (PE 90.1) and Tata Steel (PE 76.74).
PEERPEROCE %
USHAMART33.4820.0
JSWSTEEL90.112.68
TATASTEEL76.7413.82
LLOYDSME28.3327.44
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒

9 ML-predicted forward-growth ranks across sales, EBIT, and FCF.

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66
SCORE / 100
Overall
6-axis composite of the sections below.
Performance STRONG 90
Valuation FAIR 40
Growth STEADY 63
Profitability HIGH 85
Technicals NEUTRAL 65
Risk MODERATE 50
Key Stats
TTM PE
33.48
P/B
4.44
52W HIGH
₹529.3
OFF HIGH
-3.27%
DIV YIELD
0.63%
MKT CAP
₹15628 Cr
◉ Active Signals
MACDBullish2.1694
RSI(14)Neutral57.57
Near 52W HighBullish-3.27
Street Consensus
2 analysts
₹564.0
mean target
Low ₹528.0Now ₹512.0High ₹600.0
⧉ Strategy Fit 🔒

See which of ftInvstr's 50+ strategies hold USHAMART and at what entry.

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