Multibagger Stock: Usha Martin Surges 2,400% in 5 Years as Promoters Raise Stake

Usha Martin Shares Rally After Promoter Buys Additional Stake

Shares of Usha Martin Ltd, a leading manufacturer of specialty steel wire ropes, surged 3% in intraday trade on March 26, reaching ₹347 per share. The rally followed a regulatory disclosure that one of the promoter group entities, Brij Investments, had acquired additional shares in the company.

According to the exchange filing on March 26, Brij Investments purchased 19,000 shares (0.01% stake) in Usha Martin via an open market transaction on February 24. This latest stake increase comes after several other promoter group members, including Amisha Jhawar, Rajeev Jhawar, Stuti Jhawar, and Peterhouse Investments, had also acquired more shares in recent months.

Promoter buying is often seen as a strong indicator of long-term confidence in the company’s growth prospects, and the recent transactions have further strengthened investor sentiment around the stock.

Multibagger Performance: Usha Martin Delivers 2,400% Returns in Five Years

Exponential Stock Price Growth

Usha Martin has emerged as a multibagger stock, delivering an astonishing 2,436% return since March 2020.

• March 2020 stock price: ₹13.60

• Current stock price (March 26, 2025): ₹347

• Total gain: 2,436%

Over the last two years alone, Usha Martin’s share price has surged 296% from ₹87 to ₹345. The stock has maintained a consistent upward trajectory, making it one of the best-performing mid-cap stocks in recent years.

Consistently Strong Performance Over the Years

The company’s stock has ended eight out of the last ten calendar years in positive territory. The standout years include:

• 2021: 145% gain, marking one of the biggest rallies

• 2023: 73% return, reinforcing strong investor confidence

Usha Martin’s sustained growth has been supported by its expanding global presence, operational efficiency, and strong financial performance.

Promoter Shareholding Structure and Market Confidence

Promoter Group Strengthens Its Hold

As of Q3FY23, the shareholding structure of Usha Martin reflects a balanced mix of institutional and retail investors:

• Promoters: 43.5%

• Foreign Institutional Investors (FIIs): 14.3%

• Domestic Institutional Investors (DIIs): 8.1%

• Public Shareholding: 34.4%

With promoters steadily increasing their stake, market analysts see this as a bullish signal for the stock’s long-term prospects.

Strategic Business Transformation and Global Expansion

Transition from a Manufacturer to a Global Leader

Usha Martin has evolved from a traditional steel wire manufacturer to a global provider of high-performance specialty wire rope solutions.

The company’s product portfolio includes:

• Steel wires, wire ropes, and strands

• Low Relaxation Pre-Stressed Concrete (LRPC) strands

• Cables and pre-stressing solutions

• Bespoke end-fitments and accessories

Global Presence and Manufacturing Excellence

The company operates state-of-the-art manufacturing facilities in:

• India (Ranchi, Hoshiarpur, Silvassa)

• Dubai

• Bangkok

• United Kingdom

By strategically expanding its production capabilities, Usha Martin has strengthened its market presence across key international regions.

‘One Usha Martin’ Initiative: Driving Operational Efficiency

Integrated Business Strategy for Long-Term Growth

As part of its next phase of transformation, the company has launched the ‘One Usha Martin’ strategy to:

• Integrate global operations for enhanced efficiency

• Optimize procurement and logistics to drive cost savings

• Enhance manufacturing output at its Brunton Shaw facility in the UK

These efforts are aimed at improving operational margins and reinforcing the company’s leadership position in the specialty steel wire rope industry.

“The ‘One Usha Martin’ strategy marks a significant step toward future-proofing our business. By optimizing costs and increasing operating leverage, we are positioning ourselves for sustained growth,” the company stated.

Financial Strength and Future Outlook

Improved Profitability and Margin Expansion

Usha Martin has successfully strengthened its financial performance, with key metrics showing consistent improvement:

• Revenue growth driven by higher demand for specialty wire ropes

• Operating margins expansion due to cost efficiency measures

• Strong cash flow generation supporting reinvestment in business expansion

Market Analysts Bullish on Usha Martin’s Future Performance

With promoters increasing their stake, global expansion plans, and operational efficiency improvements, analysts remain bullish on Usha Martin’s long-term growth potential. The stock’s multi-year uptrend and strong fundamentals position it as a key player in the specialty steel wire industry.