CARBORUNIV - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | CARBORUNIV | Market Cap | 18,130 Cr. | Current Price | 952 ₹ | High / Low | 1,070 ₹ |
| Stock P/E | 51.0 | Book Value | 143 ₹ | Dividend Yield | 0.42 % | ROCE | 17.6 % |
| ROE | 13.3 % | Face Value | 1.00 ₹ | DMA 50 | 864 ₹ | DMA 200 | 895 ₹ |
| Chg in FII Hold | -0.25 % | Chg in DII Hold | -0.56 % | PAT Qtr | 84.5 Cr. | PAT Prev Qtr | 64.3 Cr. |
| RSI | 64.3 | MACD | 39.6 | Volume | 2,31,238 | Avg Vol 1Wk | 2,91,820 |
| Low price | 735 ₹ | High price | 1,070 ₹ | PEG Ratio | 6.20 | Debt to equity | 0.00 |
| 52w Index | 64.8 % | Qtr Profit Var | 4.93 % | EPS | 18.6 ₹ | Industry PE | 46.6 |
📊 Financials: CARBORUNIV shows moderate profitability with ROE at 13.3% and ROCE at 17.6%. EPS of ₹18.6 supports earnings visibility, while quarterly PAT rose from ₹64.3 Cr. to ₹84.5 Cr. (4.93% variation). The company maintains a debt-free balance sheet, strengthening financial stability.
💹 Valuation: The stock trades at a P/E of 51.0, above the industry average of 46.6, indicating premium valuation. P/B ratio of ~6.65 highlights expensive pricing relative to book value. PEG ratio of 6.20 suggests overvaluation compared to growth prospects. Intrinsic value appears lower than current levels, limiting margin of safety.
🏢 Business Model: CARBORUNIV operates in industrial consumables, benefiting from manufacturing and infrastructure demand. Its competitive advantage lies in debt-free operations and consistent profitability. However, declining institutional interest (FII -0.25%, DII -0.56%) raises caution.
🎯 Entry Zone: Safer entry between ₹850–900, near DMA support levels. Long-term investors may hold for 2–4 years, with exit considerations if ROE falls below 12% or valuations remain stretched without earnings growth.
Positive
- Debt-free balance sheet ensures financial resilience.
- ROCE at 17.6% reflects healthy operational efficiency.
- Quarterly PAT growth from ₹64.3 Cr. to ₹84.5 Cr.
- EPS of ₹18.6 supports earnings visibility.
Limitation
- High P/E of 51.0 vs industry average of 46.6.
- PEG ratio of 6.20 indicates overvaluation.
- Dividend yield modest at 0.42%.
- Declining institutional interest (FII -0.25%, DII -0.56%).
Company Negative News
- No major recent negative news, but stretched valuations and reduced institutional interest are concerns.
Company Positive News
- Debt-free status strengthens balance sheet.
- Quarterly profit growth highlights resilience.
Industry
- Industrial consumables sector remains stable with demand supported by manufacturing and infrastructure growth.
- Industry P/E at 46.6 suggests CARBORUNIV trades at a premium.
Conclusion
✅ CARBORUNIV is a fundamentally strong company with solid profitability and zero debt. However, valuations are expensive, limiting upside potential. Entry near ₹850–900 offers safety, while holding for 2–4 years could yield moderate returns if earnings growth sustains. Monitoring institutional sentiment and valuation metrics is essential for long-term investors.