⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CARBORUNIV - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | CARBORUNIV | Market Cap | 14,572 Cr. | Current Price | 765 ₹ | High / Low | 1,128 ₹ |
| Stock P/E | 41.0 | Book Value | 143 ₹ | Dividend Yield | 0.52 % | ROCE | 17.6 % |
| ROE | 13.3 % | Face Value | 1.00 ₹ | DMA 50 | 813 ₹ | DMA 200 | 902 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | 0.19 % | PAT Qtr | 84.5 Cr. | PAT Prev Qtr | 64.3 Cr. |
| RSI | 38.5 | MACD | -16.0 | Volume | 71,549 | Avg Vol 1Wk | 1,06,701 |
| Low price | 738 ₹ | High price | 1,128 ₹ | PEG Ratio | 4.99 | Debt to equity | 0.00 |
| 52w Index | 6.88 % | Qtr Profit Var | 4.93 % | EPS | 18.6 ₹ | Industry PE | 52.8 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT rose from 64.3 Cr. to 84.5 Cr., showing improvement. EPS at 18.6 ₹ is modest relative to valuation.
- Margins & Returns: ROE at 13.3% and ROCE at 17.6% are decent, reflecting moderate efficiency.
- Debt Profile: Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet, a strong financial position.
- Cash Flow: Debt-free status ensures stable cash flows, though growth momentum is moderate.
💹 Valuation Indicators
- P/E Ratio: 41.0 vs Industry PE of 52.8 → slightly undervalued compared to peers but still expensive in absolute terms.
- P/B Ratio: Current Price 765 ₹ vs Book Value 143 ₹ → P/B ~5.35, indicating premium valuation.
- PEG Ratio: 4.99 → suggests overvaluation relative to growth prospects.
- Intrinsic Value: Trading above intrinsic value, limiting near-term upside.
🏢 Business Model & Competitive Advantage
- Carborundum Universal operates in abrasives, ceramics, and electro-minerals, serving industrial and manufacturing sectors.
- Debt-free balance sheet provides resilience and financial flexibility.
- Competitive advantage lies in diversified product portfolio and established market presence, though growth is modest.
📈 Technical & Entry Zone
- Stock trading at 765 ₹, below 50 DMA (813 ₹) and 200 DMA (902 ₹).
- RSI at 38.5 indicates oversold territory; MACD negative suggests short-term weakness.
- Entry Zone: Attractive between 740–760 ₹ for accumulation, with cautious long-term holding.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- Improving quarterly PAT performance.
- Strong ROCE at 17.6% indicates efficient capital use.
⚠️ Limitation
- High P/E and P/B ratios indicate premium valuation.
- PEG ratio of 4.99 suggests overvaluation relative to growth.
- ROE at 13.3% is moderate compared to industry leaders.
📉 Company Negative News
- No major recent negative news, but valuation concerns and modest growth remain risks.
📈 Company Positive News
- Quarterly PAT growth from 64.3 Cr. to 84.5 Cr. shows operational improvement.
- Increase in FII (+0.11%) and DII (+0.19%) holdings signals institutional confidence.
🏭 Industry
- Industrial manufacturing sector benefits from infrastructure growth and demand for abrasives and ceramics.
- Industry PE at 52.8 indicates high valuations across the sector.
- Competition from global players and cyclical demand patterns remain challenges.
🔮 Conclusion
- CARBORUNIV shows solid fundamentals with debt-free status and decent returns.
- Valuation appears stretched, limiting near-term upside despite operational improvements.
- Recommendation: Accumulate cautiously in the 740–760 ₹ range for long-term holding, focusing on industrial demand cycles.