Usha Martin zooms 54% in 4 weeks; stock trades at over 14-year high
Shares of Usha Martin hit an over 14-year high of Rs 134.40, on soaring 8 per cent on the BSE in Wednesday’s intra-day trade extending it’s a month long rally. The stock of the wire rope manufacture has zoomed 54 per cent in the past one month as compared to a 4 per cent rise on the S&P BSE Sensex. The stock traded at its highest level since January 2008, when it hit a record high of Rs 154.
According to disclosure made by Usha Martin, the company’s promoter Peterhouse Investments sold 1.6 million equity shares or 0.52 per cent stake in the company thus far in March via open market deals.
Post transaction, Peterhouse Investments stake in the company decreased to 2.16 per cent from 2.68 per cent. The promoter group company held 6.54 per cent stake in Usha Martin at the end of December 2021 quarter. The names of the buyers were not ascertained immediately. CLICK HERE FOR DETAILS
Meanwhile, for the first nine months ended (April to December) of financial year 2021-22 (9MFY22), Usha Martin had reported a strong 119 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 182.70 crore. It posted net profit of Rs 83.6 crore in 9MFY21. Revenue from operations grew 33 per cent YoY to Rs 1,921 crore from Rs 1,444 crore. Earnings before interest, taxes, depreciation, and amortization (ebitda) margins improved 212 bps at 15.9 per cent from 13.8 per cent during the same period last year.
In FY21 annual report, Usha Martin said, the global demand for the oil and offshore market saw improvement during the year under review which in turn boosted the demand for speciality rope products of the company catering to the said sector. “It is expected that the demand from the said sector shall sustain in the next fiscal and is expected to provide business opportunities to the Company. Further with steady infrastructure spending by the government, speciality products used in construction and infrastructural sector may be growth drivers for the company.”
U M Cables is a wholly owned Indian subsidiary of the company, engaged in business of telecommunication cables. Its manufacturing facility is located at Silvassa, India.
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