Motilal Oswal Mutual Fund Buys Fresh Stake In This Multibagger Stock That Rose Over 160% In 1 Year

Usha Martin Ltd is a mid-cap firm that operates in India's metal industry. Leading global producer of wire ropes is Usha Martin. Usha Martin's wire rope production facilities, which began operations in 1960, are located in Ranchi, Hoshiarpur, Dubai, Bangkok, and the UK and provide the broadest range of wire ropes. Despite being a multibagger stock from Dalal Street in the last 1 year the stock has maintained its focus Motilal Oswal Mutual Fund Buys Fresh Stake through block deal.

The Motilal Oswal Mutual Fund (MOSTF30) acquired 18.5 lakh shares of the firm at an average price of Rs 270.12 per share, which came to close the deal at Rs 50 crore, according to bulk transactions data on the National Stock Exchange (NSE). Whereas, Quant Mutual Fund held fully paid up equity shares of 63,35,533 or 2.11% stake in the company.

The firm reported net income of Rs. 866.55 Cr. in Q4 FY2023, growing 12.14% YoY from Rs. 772.73 Cr. in Q4 FY22. The company's net profit for the quarter in March 2023 was Rs 105.21, down 3.17 percent from the March 2022 quarter's Rs 108.65 Cr. The firm recorded a total income of Rs. 3295.82 crores for the fiscal year that ended on March 31, 2023, up from Rs. 2723.31 crores for the fiscal year that ended on March 31, 2022, representing a growth of 21.02% YoY. The company's net profit reached Rs 350.14 Cr in 12MFY23 up by 20.21% from Rs 291.27 Cr in 12MFY22.

The shares of Usha Martin opened today on the BSE at Rs 290.00 apiece. The stock made a 52-week-high of Rs 296.45 on (13/06/2023) and a 52-week-low of Rs 99.45 on (20/06/2022). The stock price climbed from Rs 30.70 to the present market price over the past five years, resulting in a multibagger return of 830.13%. The stock price jumped from Rs 107.30 to the current market price during the course of the last year, recording a multibagger return of 166.12%. On a YTD basis, it has gone up by 54.10% so far in 2023.

Gaurav Bissa, VP, InCred Equities said "Usha Martin witnessed a 15-year breakout in 2022 at 150 levels which was followed by a strong upside. The stock made a retest of this breakout and started a fresh uptrend. The stock has witnessed 70% upside in a span of just over 5 months which makes fresh buying at this point less lucrative. Those who have bought the stock earlier can continue to hold with trailing stoploss placed at 220 levels for a potential upside till 350 levels. RSI has still not entered overbought levels on the weekly and monthly timeframes whereas the stock is making higher highs and higher lows on daily timeframe suggesting the stock can continue to scale higher in the coming weeks and months."

Nainesh Thakkar, Head of One Percent Academy by Fisdom said "Usha martin broke out to it's all time high levels after a multi year timeframe and consolidation in Dec 2022. It had made a top of 154 in Jan 2008 post which the levels were retested in April 2022. Finally, in Dec 2022 after 14 years of consolidation the stock started its upward journey breaking its previous highs and now is in a positive territory. This stock can be accumulated in the range of 250 - 260 with a stop loss of close below 165 and targets of 430 - 460. The stock has already rallied 71% from the breakout of 170 levels. We expect the momentum to continue however since it rallied with huge moves on the upside, buy on dips with a strict stop loss of 165 can be a good strategy."

Commenting on the outlook of the stock A R Ramachandran, Co-founder & Trainer-Tips2trades said "Usha Martin is overbought & looks bearish on the Daily charts with strong support at 296. A daily close below support of 277 could lead to target of 233 in the near term."

Recently Motilal Oswal bought 18.5 lakh shares in Usha Martin at an average price of Rs 270.12 per share, which amounted to Rs 50 crore on June 12. Usha Martin Ltd has given a return of 110.03 percent over the last 6 months. Currently its trading at 285. Thos who are already in this trade wit swing trading view can use 245 levels as profits booking or trailing stop loss level. For any fresh buying 250 to 260 range is going to an ideal range. Target expectation should be 300,320,342,350 and 400 in coming months. Right now, Prise is trading below VWAP and RSI in showing over bought zone so better to wait for a pull back in it before initiating fresh longs says V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

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