Usha Martin Results

Usha Martin’s consolidated Topline and EBITDA grew 11% and 6% Y-o-Y at INR 5.8 bn and INR 903 m against our expectation of INR 5.7 bn and INR 801 mn. This was achieved due to higher proportion of value added products in the sales mix and good increase in realization (ranging from 5 to 10% YoY). Net profit at INR 460 mn was ahead of expectations.

At Rs 89, the stock is trading at an EV/EBITDA of 9.6x and 7.5x and at PE of 15.4x and 10.0x FY08E and FY09E earnings.