Usha Martin (USM IN) – Initiating Coverage – More than meets the eye – BUY
Published on 24 Jun 2026
Usha Martin (USM) is India’s largest manufacturer of steel wire ropes and specialty wire products, catering to critical applications across sectors such as mining, realty, oil & offshore, infrastructure, marine, engineering and industrial. Over the last decade, USM has increased its focus toward value-added segments by penetrating the high-margin OEM chain competing with global players. We believe USM is at an inflection point with its rising global market share (~4%) and leadership in the domestic market (over 60%). USM is expected to continue to deliver superior operating performance driven by: 1) improving market share across global OEMs; 2) timely expansion across its diversified end user industries; 3) focus on high-value specialty-grade ropes and wires; 4) improved supply-chain efficiency through the One Usha Martin initiative, and 5) growing after-market revenue share. We expect revenue/EBITDA/PAT to grow at ~10%/12%/16% CAGR over FY26-29E driven by planned capacity addition and improving utilization. We initiate coverage on USM with ‘BUY’ and TP of INR570 assigning 25x PER to Sep’28 earnings.
