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INVESTMENT INSIGHTS

Check Before You Invest : Carborundum Universal Ltd

BSE: 513375 NSE: CARBORUNIV ISIN: INE120A01034
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Abrasives

Snapshot

Q.1 Which industry/sub-sector does Carborundum Universal Ltd belong to?
Carborundum Universal Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Abrasives segment.
Q.2 Is Carborundum Universal Ltd a good quality company?
Carborundum Universal Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Carborundum Universal Ltd undervalued or overvalued?
Carborundum Universal Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Carborundum Universal Ltd a good buy now?
Carborundum Universal Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Carborundum Universal Ltd?
Carborundum Universal Ltd revenue growth is 4.1% for FY-2025 , which is below its 5 year CAGR of 13.5% , indicating slower growth.
Q.2 Gross Profit margin of Carborundum Universal Ltd?
Carborundum Universal Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.9% for FY-2025 , which is below its 5 year median of 16.7% , indicating decreasing margins.
Q.3 Operating Profit Margin of Carborundum Universal Ltd?
Carborundum Universal Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.29% for FY-2025 , which is below its 5 year median of 15.71% indicating decreasing margins.
Q.4 Net Profit Margin of Carborundum Universal Ltd?
Carborundum Universal Ltd Net Profit Margin is 6.1% for FY-2025 , is below with its 5 year median of 10.13%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 14.9 16.7
Operating Profit Margin 14.29 15.71
Net Profit Margin 6.1 10.13
Q.5 Return on Asset of Carborundum Universal Ltd?
Carborundum Universal Ltd Return on Asset is 6.98%, which is below its 5 year historical median of 11.82%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Carborundum Universal Ltd?
Carborundum Universal Ltd Return on equity is 9.06% for FY-2025 , which is below its historical median of 15.66%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Carborundum Universal Ltd?
Carborundum Universal Ltd Return on capital employed is 14% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Carborundum Universal Ltd?
Carborundum Universal Ltd Cash conversion cycle is 94 days, above its historical median of 84 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.16 1.16
ROE 9.06 15.66
ROCE 14 20.33
Cash Conversion Cycle 94 days 84 days
Q.9 Debt to Equity ratio of Carborundum Universal Ltd?
Carborundum Universal Ltd Debt-to-Equity ratio is 0.03 , which is above with the industry average of 0.01 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Carborundum Universal Ltd?
Carborundum Universal Ltd Debt to cash flow from operations is 0.4 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Carborundum Universal Ltd?
Promoters hold 38.89% of the Carborundum Universal Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Carborundum Universal Ltd vs industry peers?
Carborundum Universal Ltd revenue CAGR is 13.49% , compared to the industry median CAGR of 12.01% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 4,894.2 2,523.8
Gross Profit 729.2 537.6
Operating Profit 695 497
Net Profit 299 350
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.16 0.92
ROE 9.06 19.91
ROCE 14 26.45
Cash Conversion Cycle (days) 93.71 80

Valuation & price assessment

Q.1 Stock return of Carborundum Universal Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 16.6% 14.1% -4.2% -10.2%
Q.3 Valuation ratios of Carborundum Universal Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 74.25 20.88 43.00
Price to Book 4.71 2.68 10.22
Price to Sales 3.61 2.13 9.26
EV to EBITDA 27.79 12.12 32.80

Check more companies

1. Grindwell Norton
2. Carborundum Univer.
3. Wendt India
4. John Oakey & Mohan Ltd.
5. Alirox Abrasives
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