CARBORUNIV - Investment Analysis

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

Investment Rating: 2.7

📊 Fundamental Analysis

Here’s a breakdown of the key metrics and what they suggest

Metric Value Implication

Market Cap ₹17,672 Cr Mid-cap; stable but not immune to volatility

Stock P/E 49.0 Expensive; priced at industry average but high for current earnings

PEG Ratio 19.8 Extremely overvalued relative to growth; red flag for long-term investors

ROCE / ROE 16.1% / 10.8% Decent but not exceptional; suggests moderate capital efficiency

Dividend Yield 0.43% Low; not attractive for income-focused investors

Debt-to-Equity 0.06 Very low; strong balance sheet

EPS ₹15.4 Reasonable, but not enough to justify current valuation

Qtr Profit Var -78.4% Sharp decline; indicates earnings volatility

FII/DII Holding Change -0.30% / +0.36% Slight institutional churn; not a strong vote of confidence

📉 Technical Analysis

Current Price: ₹928

DMA 50 / DMA 200: ₹978 / ₹1,098 → Trading below both; bearish trend

RSI: 34.4 → Near oversold zone; potential for short-term bounce

MACD: -6.00 → Bearish momentum

Volume: Below average → Weak conviction in current price action

🧠 Valuation & Entry Zone

Given the high P/E and PEG ratio, the stock is overvalued. The ideal entry zone would be

₹800–₹850 range

This aligns with its recent low and offers a better margin of safety

📈 Long-Term Investment Outlook

Pros

Strong balance sheet (low debt)

Reasonable ROCE and ROE

Stable mid-cap with legacy industrial presence

Cons

Overvaluation (PEG 19.8 is a major concern)

Weak earnings momentum (Qtr profit down 78%)

Low dividend yield

Bearish technicals

Unless earnings growth picks up significantly, this stock does not justify long-term holding at current levels.

🏁 Exit Strategy / Holding Period

If you already hold this stock

Short-Term: Consider exiting on any bounce toward ₹1,000–₹1,050

Medium-Term: Hold only if earnings stabilize and ROE improves >13%

Long-Term: Reassess if PEG drops below 2 and dividend yield improves

You should not average down unless the price dips below ₹850 and fundamentals show recovery.

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