CARBORUNIV - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.7

📈 Positive

• 🧾 Zero debt (Debt-to-equity: 0.00) ensures strong financial stability and low risk exposure.
• 💹 Healthy ROCE (17.6%) and ROE (13.3%) indicate efficient capital deployment and profitability.
• 📘 Strong book value of ₹143 supports long-term asset strength.
• 🏭 Diversified industrial presence in abrasives, ceramics, and electrominerals offers resilience across sectors.

⚠️ Limitation

• 📉 High valuation with P/E of 48.9 and PEG of 5.94, suggesting overpricing relative to growth.
• 📉 Quarterly PAT dropped 25.6%, signaling margin pressure or operational challenges.
• 📉 EPS at ₹18.4 is modest given the valuation, limiting upside potential.
• 📉 MACD at -6.10 and RSI at 51.1 reflect weak technical momentum.

📰 Company Negative News

• 📉 Significant drop in quarterly profit from ₹145 Cr. to ₹64.3 Cr.
• 📉 FII holding decreased by 0.94%, indicating reduced foreign investor confidence.

🌟 Company Positive News

• 📈 DII holding increased by 0.60%, showing domestic institutional support.
• 📊 Maintains strong operating margins and zero debt despite profit volatility.

🏭 Industry

• 🔧 Operates in industrial consumables with applications in manufacturing, automotive, and aerospace sectors.
• 📊 Industry P/E is 50.5, slightly above Carborundum’s, suggesting sector-wide high valuation norms.

🧭 Conclusion

• 📉 Stock appears overvalued based on current earnings and PEG ratio.
• 📌 Suggested entry zone: ₹810–₹850, near 52-week low and below DMA50.
• 🕰️ Long-term holding recommended for risk-averse investors due to zero debt and solid ROCE, but monitor earnings recovery and valuation.