Usha Martin surges 5%, hits new high; Axis Securities sees more upside

Technically, Usha Martin stock is trading well above its 20, 50, 100, and 200-day SMAs, reflecting robust underlying strength and a favourable trend structure, says Axis Securities in a note.

Usha Martin share price today

 

Shares of Usha Martin hit a new high of ₹472.95, as they rallied 5 per cent on the BSE in Monday’s intra-day trade on expectations of a healthy business outlook. 

 

In the past one month, the stock price of this iron & steel company has outperformed the market by surging 24 per cent, as compared to 1 per cent rise in the BSE Sensex. In the past six months, it has zoomed 40 per cent, as against 6 per cent gain in the benchmark index.  Track Stock Market Live Updates 

Usha Martin overview, outlook

 

Usha Martin is a leading global and India’s No. 1 specialty steel wire rope solutions provider. The company is also engaged in the manufacturing of high quality wires, low relaxation prestressed concrete steel strand (LRPC), bespoke end fitments, accessories and related services. The company caters to various non-correlated end-user industries – elevators, mining, container port cranes, fishing, construction, among others – with a considerable market share in each industry.

 

As the company nears the completion of the foundational phase of our ‘One Usha Martin’ journey, which was initiated in FY25 and is expected to conclude in the first half of this fiscal, the management remains confident of delivering stronger outcomes from the second half of FY26 onwards.

 

With the Ranchi capacity expansion progressing as per schedule, and with continued momentum across other strategic initiatives, the management while announcing Q1 results on August 12 said that the company is well positioned to capitalise on emerging growth opportunities. These developments, coupled with robust order pipeline across international and domestic markets, the company is poised for a meaningful step-up in its growth trajectory in the periods ahead.

 

Meanwhile, Usha Martin is undertaking debottlenecking, modernisation, upgradation and capacity enhancement of the plant at Ranchi, Jharkhand, which shall enhance its overall capacity in India by around 17 per cent over FY24-FY26 to 274,400 tonnes per annum (TPA) and capacity at its Thailand plant by 8 per cent to 39,000TPA, both by FYE26.

 

India Ratings and Research (Ind-Ra) expects the consolidated EBITDA per tonne to sustain at healthy levels over the medium term as the share of value-added products in the overall sales mix increases gradually post capex and to hover at ₹30,000-33,000/t over FY26-FY27 (FY25: ₹30,093/t; FY24: ₹33,042/t; FY23: ₹26,678/t).

 

Axis Securities sees more upside in Usha Martin stock

 

Usha Martin has registered a decisive breakout above the Rounded Bottom pattern at ₹434 on the weekly chart, confirmed by a strong bullish candle, indicating a positive bias. Notably, volume activity remained subdued during the pattern formation but spiked sharply at the breakout, underscoring strong market participation and validating the breakout move, according to technical analyst at Axis Securities.

 

The stock is trading well above its 20, 50, 100, and 200-day SMAs, reflecting robust underlying strength and a favourable trend structure.  Momentum indicators further reinforce the bullish setup, with the weekly RSI crossing above its horizontal resistance at 65 and staying firmly above its reference line, adding conviction to the positive outlook. The above analysis indicates a potential upside toward ₹479-₹491 levels.