Over 2,400% surge in 5 years! Multibagger stock jumps 3% as promoter increases stake

Multibagger stock: Usha Martin, which is primarily engaged in the manufacture and sale of steel wires, strands, wire ropes, cords, and related accessories, saw its shares jump 3% in intraday trade on Wednesday, March 26, reaching ₹347 per share after one of the promoter group entities acquired an additional stake in the company.

In a filing to the exchanges on Tuesday, the company announced that Brij Investments has acquired a 0.01% stake (or 19,000 shares) in the company through an open market transaction on February 24. At the end of the December quarter, Brij Investments held a 2.03% stake in the company.

Earlier, Amisha Jhawar, Rajeev Jhawar, Stuti Jhawar, and Peterhouse Investments—members of the promoter group—had also acquired additional stakes in the company, as per the company’s recent exchange filings.

According to BSE shareholding data, promoters own 43.5% of the company, while FIIs and DIIs hold 14.3% and 8.1%, respectively, as of Q3FY23. The remaining 34.4% stake is held by general public shareholders.

Usha Martin specializes in producing high-performance and high-value specialty wire ropes, LRPC strands, wires, pre-stressing solutions, and cables, while also providing bespoke end-fitments, accessories, and related services.

Over the years, the company has evolved from a manufacturer into a comprehensive provider of specialty steel wire rope solutions. It aims to become a leading global player in the industry, a goal reinforced by its strategically located manufacturing sites in Ranchi, Hoshiarpur, Silvassa, Dubai, Bangkok, and the UK.

As part of its long-term strategy, the company has embarked on the next phase of transformation under the ‘One Usha Martin’ approach, aimed at integrating its global operations to enhance efficiency, optimize costs, and strengthen its competitive edge.

The company’s key focus areas include centralizing procurement to leverage economies of scale, streamlining logistics to improve cost efficiency and delivery timelines, and optimizing its manufacturing operations at Brunton Shaw UK.

Building on the successful turnaround achieved in recent years, the company is confident that the ‘One Usha Martin’ initiative is a significant step toward future proofing its business, driving margin improvements, and increasing operating leverage.

Wealth Creator

The company shares, which were trading at ₹87 each just two years ago, have witnessed an astonishing surge of 296% to ₹345. Furthermore, from their low of ₹13.60 in March 2020, the shares have experienced an extraordinary ascent of 2436% to date.

The stock has ended eight out of ten calendar years in positive territory. The standout performance was recorded in CY21, when the stock rallied by an impressive 145%, followed closely by a 73% gain in CY23.

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