Anand Rathi has issued a buy rating on Usha Martin with a target price of ₹620 in its research report dated September 14, 2026. According to the report, the brokerage expects the FY22-FY26 EBITDA CAGR momentum to sustain through FY30e, supporting their positive outlook on the specialty steel wire rope manufacturer. The target price suggests 25% potential upside from current market levels.
Usha Martin has successfully shifted from 'volume-led growth' towards 'value-led growth', as reported by Anand Rathi. The company's share of wire ropes increased from 61% in FY22 to 73% in Q1FY27, while EBITDA per tonne rose from ₹19.6k to ₹34.1k during the same period. The strategic focus on high-margin VAP (Value Added Products) and plasticated LRPC segment entry has contributed to this improvement.
Usha Martin holds approximately 65% market share in the Indian wire rope industry and operates with a cumulative production capacity of 0.29 million tonnes across steel wire ropes, strands and LRPC. As reported by Anand Rathi, the company operates in a high entry barrier industry with long customer qualification cycles, and about 80% of its demand is replacement driven, offering relatively strong annuity-like revenue visibility.
Anand Rathi expects EBITDA per tonne to further improve to ₹41.1k by FY28e, aided by continued premiumisation, increasing contribution from global markets and favourable product-mix. The company has strengthened its balance sheet and achieved net debt-free status in FY26. At the current market price, the stock trades at 23.2x FY28e and 18.6x FY30e earnings, leaving room for valuation re-rating as it continues to demonstrate earnings growth and improve product-mix.
