CARBORUNIV - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Carborundum Universal (CARBORUNIV) Fundamental Rating: 3.4

🧾 Core Financials

Revenue & Profitability

PAT this quarter: ₹29.1 Cr vs ₹84.4 Cr previous quarter ➜ -78.4% decline — a major drop worth investigating.

EPS: ₹15.4 suggests modest earnings relative to price.

Profit Margins

ROE: 10.8%, ROCE: 16.1% ➜ decent efficiency, though not exceptional for industrial peers.

Debt & Liquidity

Debt to equity: 0.06 ➜ very low leverage, a strong plus.

Cash flow data not provided, but low debt signals financial prudence.

📈 Valuation Indicators

Metric Value Insights

P/E Ratio 49.0 Expensive compared to earnings

P/B Ratio 5.0 (928 ₹ / 185 ₹) ➜ Rich valuation

PEG Ratio 19.8 Extremely high – growth not justifying price

Industry PE 49.0 In line with sector, but still high

🔍 Conclusion: The stock appears overvalued based on earnings and growth metrics.

🏭 Business Model & Health

Carborundum Universal operates in abrasives, ceramics, and electro minerals — sectors requiring robust industrial demand.

Competitive moat: Established player with diverse segments, though not currently exhibiting high profitability.

Institutional moves

FII: -0.30%, DII: +0.36% ➜ slight domestic conviction.

📌 Technical Signals

RSI: 34.4 ➜ approaching oversold territory.

MACD: -6 ➜ bearish momentum.

DMA 50: ₹978, DMA 200: ₹1,098 ➜ current price is trading below both averages.

✅ Potential Entry Zone: ₹825–875 ⚠️ Assuming continued weakness, this range could offer better risk-reward.

📅 Long-Term Guidance

Hold long-term only if

You expect an industrial demand rebound.

Management addresses recent profit volatility.

There's clearer visibility on margin recovery.

Otherwise, watch from the sidelines or wait for re-entry near intrinsic value zones.

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