What makes you so sure that the market was totally correct about Usha martin in March 2020 ? Is it simply to take the lowest price point and increase the X in your argument ??
Also our IT companies are mostly manpower replacement companies .While all of them quickly has added AI/ml to all the sentences they speak publicly, any actual AI disruption will only reduce their business since they are not into the development of AI but only users .

“Beauty lies in the eyes of the beholder. Same thing applies to valuations.”
Yet there are limits to what market participants, as a whole group, accept to be unwise or flat out wrong.
Triple digit P/Es, High D/E, Promoter Selling (Shivalik) and multiple such aspects.

I have gone through the company and the product is sticky, very sticky, I agree with you there, BUT exuberance is dangerous.
World is very quickly moving towards AI and ML being the norm, real disruption. Yet is anyone willing to pay 50-100xP/E for our top IT companies? Of course not, and it is clear top IT names will enjoy the fruits of this revolution. So, there is a limit to your statement about someone finding something valuable which is considered bad by others. Subjective Preference can not escape reason for long, which is what I fear seems to be the case here.

Hence, it is confusing to see why such big benefit of the doubt for Usha Martin and not for other names who fall in similar trends, demography and industries.

I really like the product, its such an obvious winner, but buying a not so great company at great valuations is better than a great company which is valued this way – 6x EPS growth and 10x valuation growth.

Edited to add this :

Appreciate your comment Hitesh. Been through the threads you mentioned, will do so again.

1. Archean Chemical Industries Limited is a leading specialty chemicals manufacturing company based in India with a wide presence in the global markets.​They are the first of its kind integrated plant in India to produce Industrial Salt, Bromine and Sulfate of Potash.
2. Following is the product category which the company produces:-
   a) Bromine (Br2) is a reactive halogen with a wide range of uses from fire retardants to disinfectants.
   b) Sulphate of potash (SOP) is an inorganic compound which is a key ingredients in fertilizers.
   c) Industrial salt is a base chemicals which is highly used across industries from glass manufacturing to case-hardened steel.
3. We can consider Bromine as a Specialty Chemicals and remaining as a Commoditized Chemical.
4. Bromine
   a) It is a member of the halogen family and is found naturally in seawater, underground
   brine deposits and other water reservoirs.
   b) As per Annual Report 2022-23, Bromine has leadership position in Indian Bromine
   merchant sales and Export Business of ~ 48%.
   c) The end user of the product being Pharmaceutical Industry, Agrochemicals, Fire Retardants, Water Treatment.
   d) From FY19 to FY23, company has been able to grow its Bromine business by CAGR 33%.
5. SOP
   a) Sulphate of Potash, also known as potassium sulphate, is a high-end, specialty fertilizer for
   chlorine-sensitive crops.
   b) Only manufacture of SOP from natural sea brine, in India which make the product quality to be good.
   c) Export Business ~ 70%
   d) The end user of the product being Agrochemicals, glass industry, cosmetics, etc.
   e) From FY19 to FY23, company business has softened from Rs.40cr to Rs.3cr.
6. Industrial Salt
   a) There are 14,000 commercial uses of Salt, a source of Sodium and Chlorine which are basic components of an array of materials – such as plastics, glass, synthetic rubber, cleansers, pesticides, paints, adhesives, fertilizers etc.
   b) Export Business – 100%
   c) The end user of the product being Food & Beverage Industry, Water Treatment, Oil & Gas, etc.
   d) From FY19 to FY23, company has been able to grow its Industrial Salt business by CAGR 25%
7. The company has integrated plant in Hajipir (Gujarat), which is located in close proximity to the captive Jakhau Jetty and Mundra Port. Their facility and its surrounding salt fields and brine reservoirs span approximately 240 sq. km. It has a designed capacity of 5 million MT per annum and a capacity to load 28,000 MT equipped with a twin conveyor system, diesel generator set. Globally, two most popular Bromine production sites are near the Dead Sea (Israel & Jordan) and the underground well in Arkansas region in the USA. India is well placed with brine resources at the Great Rann of Kutch in Gujarat
8. Revenue Mix
   a) The company has total 55 clients (Export – 27 clients), Export Revenue – 73%, 64% of Total Revenue coming from Top 10 customers.
   b) One of its major clients includes Sojitz Corporation Japan which is also a shareholder in the company with 2.03% shareholding as on 30/06/2023.
9. Shareholding

I think you need to answer a few questions related to Usha Martin business before asking these numerical questions. ( and here too, if stock price worked on excel sheet or mathemtical calculations, all the statisticians and mahematicians in the world would be the billionaires. )

1. What were different segments of business in 2020?

2. What are the sales figures for the last few years? Which are the segments contributing to these numbers?

3. How have the margins panned out over the period in question?

4. How has the balance sheet and return ratios evolved over the period in question?

5. How is the consistency and predictability of the business now as compared to earlier. ? ( for that one needs to listen to concall and get a sense of the business. )

Usha Martin is a textbook case to understand an evolving multibagger when it was first put up by @Anant in this forum. You should first make an attempt to go through the threads ( we have two of them, one is Colloborators corner and the other one is older one)

Earlier Usha Martin was a company which had not gone anywhere with two warring cousins trying to get control of the company and wanting to run company in their own thought out way.

First real piece of good fortune/smart decision was sale of commodity steel business to Tata Steel. Secondly this was followed up by cleaning up of debt using the above sale proceeds. Third was focus and capex into the higher margin and much more predictable and steady wire ropes business, where company was in a dominant position and had global ambitions. Fourth was more transparency from management, with presentations and concalls, so that investors got an idea about the business and management intent and integrity.

If this transformation was to be summarised in a few words, it was a transformation of a largely commodity type of business into a more predictable business with global scale. Improvement in quality of earnings is a big trigger. This is a recipe for multibaggers and this kind of model can be used in future also to uncover potential winners. One needs to have an open mind to see and accept the changes without getting caught up in numbers.

Beauty lies in the eyes of the beholder. Same thing applies to valuations. Something that appears expensive might appear to be reasonable for others and that is the only reason why there is a buyer for a seller most of the times.

Update on Sanghvi Movers: 370-624-706

• A series of bearish HnS patterns negated,
• A multi year downward wedge played out,
• Shakeouts at multiple junctures along with positive RSI divergences

Has all led to it making an ATH. Monthly chart below: