Multibagger alert: This wire rope company secured over 570% returns for its investors in the last two years!

Multibagger alert: This wire rope company secured over 570% returns for its investors in the last two years!

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-08-08T13:37:13+05:30

These returns are 5.7 times the returns delivered by the S&P BSE SmallCap index, of which the company is a part.

Usha Martin Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 22.35 on 10 August 2020 to Rs 150.40 on 05 August 2022, an increase of 572% in the two-year holding period. An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 6.72 lakh today. 

These returns are 5.7 times the returns delivered by the S&P BSE SmallCap index, of which the company is a part. In the last two years, the index has climbed from the level of 13,869.08 on 10 August 2020 to 27,605.08 on 05 August 2022, a rally of 99% in the two years. 

Usha Martin Limited is one of the world’s leading manufacturers of wire rope. The company’s products find applications in diverse sectors like Oil & Offshore, Mining, Crane, Elevator, Infrastructure etc. Its distribution centres are located in the United Kingdom, North America, South America, the Netherlands, Australia, Russia, Singapore, South Africa, Indonesia, Vietnam, China, Kazakhstan, Iran etc. 

In the recent quarter of Q1FY23, on a consolidated basis, the company’s topline increased by 23.3% YoY to Rs 758.69 crore. Similarly, the bottom line increased by 41.12% YoY to Rs 79.28 crore. 

The company is currently trading at a TTM PE of 14.53x, as against the industry PE of 5.74x. In FY22, the company delivered an ROE & ROCE of 18.28% and 19.26%, respectively. 

Today, the scrip opened at Rs 156 and has touched a high and low of Rs 156 and Rs 142.50, respectively. So far 88,545 shares have been traded on the bourses. 

At 1.20 pm, the shares of Usha Martin Ltd were trading at Rs 144.05, a decrease of 4.22% from the previous closing price of Rs 150.40 on BSE. The stock has a 52-week high & low of Rs 164.65 and Rs 61.2 respectively on BSE.

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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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