Multibagger Share: Usha Martin Stock Soars 180% in 2 Years, Delivers 3,180% Gains Since May 2020

In the world of stock investing, finding a multibagger stock—one that offers huge returns in a short time—is every investor’s dream. This dream has come true for investors of Usha Martin, as the company’s shares have delivered incredible returns.

Two years ago, the stock price of Usha Martin was ₹141 per share. Since then, it has skyrocketed by 180%, now trading at ₹394. Going even further back to May 2020, when the stock was priced at just ₹20.40, the shares have jumped an amazing 3,183%!

Over the last 10 years, Usha Martin has ended in the positive eight out of ten times. Its best performance was in 2021, when the stock rose by 145%. In 2023, it gained another 73%. So far in 2024, the stock has given investors a strong return of 33%.

On October 15, Usha Martin hit a big milestone by crossing the ₹450 mark, with an all-time high of ₹451 per share.

About Usha Martin’s Business

Usha Martin is known for making high-performance, specialized wire ropes, LRPC (Low Relaxation Pre-stressed Concrete) strands, wires, cables, and related products. Over the years, the company has evolved from just a manufacturer to a complete provider of specialty steel wire rope solutions. It now aims to be a global leader in its field, with factories in Ranchi, Hoshiarpur, Silvassa, Dubai, Bangkok, and the UK.

Expansion Plans

The company is expanding its capacity to produce high-end, value-added products. This includes premium items like crane ropes, plastic-coated ropes, and mining ropes, which are crucial in industries like construction and oil and gas.

With India’s rapid urban growth and the development of smart cities, the demand for elevator ropes is increasing. Usha Martin has strengthened its supply chain to ensure faster delivery of products in this growing market.

Strong Financial Performance in FY24

In the financial year 2024 (FY24), Usha Martin’s focus on value-added products helped it perform well. Its wire rope segment contributed 71% to total revenue, up from 67% in the previous year. The company’s value-added products accounted for 71% of the wire rope revenue, compared to 65% the previous year. International markets made up 55% of its overall revenue.

Usha Martin is also increasing its production capacity through a phased capital expenditure (capex) program. Phase 1 has already started, and Phase 2, with investments of ₹167 crore in Ranchi and ₹62 crore in Thailand, will be completed in 18-24 months. This expansion is expected to further improve the company’s performance in the coming years.

In FY24, Usha Martin also created a new entity in Saudi Arabia and acquired the remaining 50% stake in its joint venture in Thailand. The company is also preparing to launch its first synthetic sling product at the Brunton Shaw facility, marking its entry into the synthetics market.