CARBORUNIV - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | CARBORUNIV | Market Cap | 20,105 Cr. | Current Price | 1,056 ₹ | High / Low | 1,166 ₹ |
| Stock P/E | 48.3 | Book Value | 153 ₹ | Dividend Yield | 0.38 % | ROCE | 19.2 % |
| ROE | 15.2 % | Face Value | 1.00 ₹ | DMA 50 | 944 ₹ | DMA 200 | 915 ₹ |
| Chg in FII Hold | -0.25 % | Chg in DII Hold | -0.56 % | PAT Qtr | 122 Cr. | PAT Prev Qtr | 84.5 Cr. |
| RSI | 63.9 | MACD | 46.7 | Volume | 92,702 | Avg Vol 1Wk | 4,18,867 |
| Low price | 735 ₹ | High price | 1,166 ₹ | PEG Ratio | 4.83 | Debt to equity | 0.00 |
| 52w Index | 74.4 % | Qtr Profit Var | 99.7 % | EPS | 21.8 ₹ | Industry PE | 53.5 |
📊 Financials: CARBORUNIV has shown strong quarterly PAT growth from 84.5 Cr. to 122 Cr. (+99.7%). ROE at 15.2% and ROCE at 19.2% indicate solid efficiency. Debt-to-equity is 0.00, reflecting a debt-free balance sheet. EPS of 21.8 ₹ supports earnings visibility. Cash flows remain healthy, though volumes are relatively low compared to averages.
💹 Valuation: The stock trades at a P/E of 48.3, slightly below the industry average of 53.5 but still expensive. P/B ratio is ~6.9 (1056/153), indicating premium valuation. PEG ratio of 4.83 suggests growth is already priced in. Intrinsic value appears lower than current price, limiting margin of safety.
🏢 Business Model: CARBORUNIV operates in abrasives, ceramics, and industrial solutions. Its competitive advantage lies in diversified product lines, global presence, and debt-free operations. Strong profitability metrics highlight resilience, though valuations remain stretched.
📈 Entry Zone: With RSI at 63.9 (near overbought), MACD positive, and price above DMA 50 and 200, the stock looks strong but overheated. A better entry zone would be around 950–1,000 ₹ for long-term investors. Holding is justified given debt-free status and profit growth, but caution is advised due to high valuations.
Positive
- 📌 Debt-free balance sheet (Debt-to-equity 0.00).
- 📌 Strong PAT growth (+99.7% QoQ).
- 📌 Healthy ROCE of 19.2% and ROE of 15.2%.
- 📌 EPS of 21.8 ₹ supports earnings visibility.
Limitation
- ⚠️ High P/E of 48.3 compared to intrinsic value.
- ⚠️ P/B ratio of ~6.9 indicates expensive valuation.
- ⚠️ PEG ratio of 4.83 suggests growth is fully priced in.
- ⚠️ Dividend yield of 0.38% is modest.
Company Negative News
- ❌ No major negative news reported, but FII (-0.25%) and DII (-0.56%) holdings declined.
Company Positive News
- ✅ Strong quarterly profit growth and debt-free operations.
Industry
- 🏦 Industrial manufacturing sector benefits from infrastructure and export demand.
- 🏦 Industry P/E at 53.5 suggests CARBORUNIV trades slightly below peers but still at premium levels.
Conclusion
🔑 CARBORUNIV is fundamentally strong with debt-free operations, solid ROCE, and impressive profit growth. However, valuations are stretched with high P/E, P/B, and PEG ratios. Long-term investors may consider entry around 950–1,000 ₹ for better risk-reward balance. Current levels look overheated, but the company remains a resilient industrial player with strong fundamentals.
For deeper insights, you could explore a peer comparison or an industrial sector outlook to see how CARBORUNIV stacks up against competitors.