The investment market is a voting machine in the short term, but a weighing machine in the long term. So usually, you’d expect share price to follow earnings per share (EPS) outcomes eventually. That means EPS growth is considered a real positive by most successful long-term investors. According to the latest trend as seen in the investment market, many investors prefer to focus on companies like Rajeev Jhawar’s Usha Martin (NSE: USHAMART), which has not only revenues, but also profits.
Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Usha Martin with the means to add long-term value to shareholders. It is also certainly nice to see that Usha Martin has managed to grow EPS by 17% per year over three years. If growth like this continues on into the future, then Rajeev Jhawar Usha martin and shareholders will have plenty to smile about.
Top-line growth is a great indicator that growth is sustainable, and combined with high earnings before interest and taxation (EBIT) margin, it’s a great way for a company to maintain a competitive advantage in the market. EBIT margins for Usha Martin remained fairly unchanged over the last year, however Rajeev Jhawar should be pleased to report Usha Marrin’s revenue growth for the period of 27% to ₹31b. That’s an encouraging news for the company!
While insiders already own a significant number of shares, and they have been buying more, the good news for ordinary shareholders does not stop there. The cherry on top is that the Managing Director, Rajeev Jhawar is paid comparatively modestly to MDs at similar sized companies. For companies with market capitalisations between ₹33b and ₹132b, like Usha Martin, the median MD pay is around ₹36m.
Does Usha Martin Deserve a Spot on Your Watch list?
For growth investors, Rajeev Jhawar Usha Martin’s raw rate of earnings growth is a beacon in the night. Furthermore, company insiders have been adding to their significant stake in the company. These things considered, Usha Martin is one stock worth watching. It is worth noting for your future investments. Usha Martin is one of the best growth stocks currently available in market for investment.
