Carborundum Universal Ltd - Stock Valuation and Financial Performance

BSE: 513375 | NSE: CARBORUNIV | Abrasives | Small Cap

Carborundum Univer. Share Price

1,255 8.45 0.68%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Carborundum Univer.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Carborundum Universal stock performance -

mw4me loader
P/E Ratio (CD):
51.16
Market Cap:
23,715.2 Cr.
52-wk low:
924.4
52-wk high:
1,300

Is Carborundum Universal Ltd an attractive stock to invest in?

1. Is Carborundum Universal Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Carborundum Universal Ltd is a good quality company.

2. Is Carborundum Universal Ltd undervalued or overvalued?

The key valuation ratios of Carborundum Universal Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Carborundum Universal Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Carborundum Universal Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Carborundum Univer.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Carborundum Universal Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 6.6%6.6%10%12.6%13%13.8%13.6%14.2%13.8%13.4%-
Value Creation
Index
-0.5-0.5-0.3-0.10.00.00.00.10.0-0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,1252,0501,9442,1122,3682,6892,5992,6323,3254,6544,628
Sales YoY Gr.--3.5%-5.2%8.7%12.1%13.6%-3.3%1.3%26.3%40%-
Adj EPS 4.64.57.21011.212.913.515.617.519.824.4
YoY Gr.--1.7%60.5%37.4%12.8%15.1%4.8%15.2%12.5%13%-
BVPS (₹) 58.857.763.273.182.590.897.7111.9123.7147.4155.8
Adj Net
Profit
86.384.8136188212244256295333376463
Cash Flow from Ops. 153326178295213202407451245430-
Debt/CF from Ops. 311.80.50.60.50.20.10.90.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.1%14.5%21.4%40%
Adj EPS 17.6%12%13.5%13%
BVPS10.8%12.3%14.7%19.2%
Share Price 23.9% 26.5% 38.3% 33.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
87.71214.614.414.914.314.814.814.516.1
Op. Profit
Mgn %
1212.915.816.516.916.315.317.816.214.115.6
Net Profit
Mgn %
4.24.47.69.39.19.11011.610.58.710
Debt to
Equity
0.40.30.30.10.10.1000.10.1-
Working Cap
Days
14715015214414514615214215213278
Cash Conv.
Cycle
95989992949910484707250

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 16.10%

Sales growth is growing at healthy rate in last 3 years 21.44%

Net Profit is growing at healthy rate in last 3 years 13.51%

Sales growth is good in last 4 quarters at 10.07%

No data to display

Latest Financials - Carborundum Universal Ltd.

Standalone Consolidated
TTM EPS (₹) 19.5 24.4
TTM Sales (₹ Cr.) 2,566 4,628
BVPS (₹.) 116.9 155.8
Reserves (₹ Cr.) 2,205 2,944
P/BV 10.66 8.00
PE 64.07 51.16
From the Market
52 Week Low / High (₹) 924.40 / 1300.00
All Time Low / High (₹) 2.55 / 1300.00
Market Cap (₹ Cr.) 23,715
Equity (₹ Cr.) 19
Face Value (₹) 1
Industry PE 59.5

Management X-Ray of Carborundum Univer.:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.020.140.140.140.140.140.020.020.020.02
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Carborundum Univer.

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,1252,0501,9442,1122,3682,6892,5992,6323,3254,654
Operating Expenses 1,8741,7871,6431,7841,9692,2522,2022,1682,7894,004
Manufacturing Costs6145725105536557427437038431,057
Material Costs7467196817367989558878981,1581,714
Employee Cost 288274250272311325341345416688
Other Costs 226222201224205230231221373545
Operating Profit 251263301329399437397464536651
Operating Profit Margin (%) 11.8%12.8%15.5%15.6%16.8%16.3%15.3%17.6%16.1%14.0%
Other Income 22273029232946334178
Interest 282523189864624
Depreciation 91100879610610810599115187
Exceptional Items 05700000-14025
Profit Before Tax 154220237262322369351395477580
Tax 5982817810212176102127138
Profit After Tax 95138155184220248275293350442
PAT Margin (%) 4.5%6.7%8.0%8.7%9.3%9.2%10.6%11.1%10.5%9.5%
Adjusted EPS (₹)4.97.17.79.311.413.114.415.017.621.8
Dividend Payout Ratio (%)26%18%20%19%20%21%19%20%20%16%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1,1061,0891,1911,3811,5611,7191,8522,1242,3512,802
Share Capital 19191919191919191919
Reserves 1,0871,0701,1721,3621,5421,7011,8332,1052,3322,783
Minority Interest705862666152464686128
Debt392277263149125926041212228
Long Term Debt187573677545843
Short Term Debt205220227142118875536204185
Trade Payables201171134165198209195303370336
Others Liabilities 217222209152142150130162277354
Total Liabilities 1,9861,8161,8601,9132,0882,2222,2832,6763,2963,848

Fixed Assets

Gross Block1,4931,4797448901,0201,0791,2241,3501,6722,382
Accumulated Depreciation59765385185284384475573666855
Net Fixed Assets8978266597057366957487771,0061,527
CWIP 40438573304639285887
Investments 3741131124180227189127138161
Inventories434388370387438533508461691899
Trade Receivables417370367381475514402478485627
Cash Equivalents 759911312612998294689352400
Others Assets864813411899110104116567146
Total Assets 1,9861,8161,8601,9132,0882,2222,2832,6763,2963,848

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 153326178295213202407451245430
PBT 154220237262322369351395477580
Adjustment 110551058993938387107166
Changes in Working Capital -50122-8123-91-1407372-207-153
Tax Paid -61-71-84-79-111-120-99-103-133-163
Cash Flow From Investing Activity -95-7-73-81-75-80-93-269-460-257
Capex -926-84-106-92-95-123-103-560-301
Net Investments -7100000-1962080
Others 4-14122517153029-10844
Cash Flow From Financing Activity -37-162-86-207-83-109-135-6689-133
Net Proceeds from Shares 3523333363
Net Proceeds from Borrowing -24-131-20-81-3000026
Interest Paid -28-25-23-18-9-8-6-4-6-22
Dividend Paid -33-25-38-19-33-52-76-38-65-77
Others 4515-8-92-42-51-56-27154-63
Net Cash Flow 221572075513179115-12640
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)8.8112.6313.6514.314.9515.1215.4214.7615.6617.16
ROCE (%)11.9616.4617.6818.3720.4621.519.119.4920.3321.47
Asset Turnover Ratio1.151.141.121.181.21.261.151.071.121.32
PAT to CFO Conversion(x)1.612.361.151.60.970.811.481.540.70.97
Working Capital Days
Receivable Days63666661656664605243
Inventory Days68696762636573676362
Payable Days9092817483788310110675

Carborundum Universal Ltd Stock News

Carborundum Universal Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Carborundum Univer. on 28-Mar-2024 16:01 is ₹1,255.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Carborundum Univer. stood at ₹23,715.2.
The latest P/E ratio of Carborundum Univer. as of 28-Mar-2024 16:01 is 64.07.
The latest P/B ratio of Carborundum Univer. as of 28-Mar-2024 16:01 is 10.66.
The 52-week high of Carborundum Univer. is ₹1,300 and the 52-week low is ₹924.4.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Carborundum Univer. is ₹2,566 ( Cr.) .

About Carborundum Universal Ltd

Carborundum Universal Limited (CUMI) was founded in 1954 as a tripartite collaboration between the Murugappa Group, The Carborundum Co., USA and the Universal Grinding Wheel Co. Ltd., U.K.  With state-of-the art facilities and strategic alliances with global partners, CUMI has achieved a reputation for quality and innovation. CUMI is one of the five manufacturers in the world with fully integrated operations that include mining, fusioning, wind and hydro power stations, manufacturing, marketing and distribution. Almost all of CUMI’s manufacturing facilities have received the ISO 9001 accreditation for quality standards. A well connected marketing and distribution network of offices and warehouses in India and abroad, ensure that service to customers is given prime importance.

CUMI’s constant innovation and product upgradation, through in-house R&D and strategic alliances with global leaders in grinding technology, have not only ensured it market leadership in India and abroad, but also international recognition as a manufacturer of quality abrasives and a provider of total grinding solutions. CUMI’s products are being exported to more than 50 countries spread across North America, Europe, Australia, South Africa and Asia.

Business area of the company

The Company pioneered the manufacture of Coated Abrasives and Bonded Abrasives in India in addition to the manufacture of Super Refractories, Electro Minerals, Industrial Ceramics and Ceramic Fibres. Today, the Company’s range varieties of Abrasives, Ceramics, Refractory products and electro-minerals manufactured across several locations in and outside the country.

Abrasives: An Abrasive is a substance which grinds, cleans, scours, abrades or removes solid material by rubbing action or by impact. Abrasives are mineral like materials available in different shapes, sizes and types according to need. Abrasive materials and Abrasive products are utilized in several end user industries such as manufacture of Machinery, Electrical & Electronic equipment, Transportation and Metal fabrication among others.

Electro Minerals: The major product groups of this segment are Fused Alumina (comprising Brown and White Alumina), Silicon Carbide (crude, macro and fine), Fused Zirconia, Alumina Zirconia, Pearl Zirconia and Zircon Mullite. The Company also manufactures a range of ‘specialities’ like Semi Friable, Azure-S and fine powders for niche markets. The operations are carried out through eight manufacturing facilities located in India, Russia and South Africa.

Industrial Ceramics: The Ceramics product group offers products which harness the heat resistance / containment, wear resistance and insulation properties of ceramics and also corrosion resistance properties of various materials.

Super Refractories: Refractory is a material that will retain its shape and chemical identity when subjected to high temperatures and is used in applications that require extreme resistance to heat, such as furnace linings. Refractory products are basically used in industries for heat resistant and containment. CUMI’s manufactures Super Refractories (which can be in two forms fired refractories and monolithics) and also Refractory Fibre.

Awards and recognitions

2017-18

  • The Company’s Electro Minerals division received an award for ‘Strong Commitment to HR Excellence Award’ by the CII for the year 2017-18.
  • ICAI - Silver Award for Annual Report 2017-18 for Excellence in Financial Reporting
  • CUMI’s Annual Report for the Financial year 2017-18 has been adjudged as the Best Presented Annual Report among the Annual Reports published in the South Asian Countries.
  • In October 2017, the Company received the ‘Golden Peacock Award for Excellence in Corporate Governance’ for the year 2017.
  • The Company receiving the Runner up award in ‘Most Diversified Exporter’ category at the ECGC Indian Exporters’ Excellence Awards 2017.
  • In March 2018, the Industrial Ceramics division, Hosur Plant received the Japan Institute of Plant Management (JIPM) Award for TPM Excellence, Category A.
  • In March 2018, the Abrasives Division, Maraimalai Nagar received the Japan Institute of Plant Management (JIPM) Award for consistent TPM Commitment.
  • In March 2018, the Bonded Abrasives Division, Hosur Plant received the Japan Institute of Plant Management (JIPM) Award for TPM Excellence, Category A.
  • In March 2018, the Coated Abrasives Division, Sriperumbudur Plant received the Japan Institute of Plant Management (JIPM) Award for Excellence in Consistent TPM commitment.

2018-19

  • In March 2019, CUMI received the Golden Peacock Award instituted by the Institute of Directors under the category - Innovative Product for its Non-Woven products.
  • CUMI won 1st place in Young HR Managers Competition for South Region by CII. Category - Employee Engagement, initiative presented was Catalyst - CUMI’s Mentoring Platform
  • CUMI’s Annual Report for the Financial year 2018-19 has been adjudged by ICAI as winner in the category ‘Silver Shield’ of ICAI’s Awards for Excellence in Financial Reporting.
  • The Company’s Electro-minerals Division has received the IEI Centenary Excellence Award 2019, from Shri Nitin Gadkari, Minister for Road Transport & Highways of India, Shipping & MSME in a function held at Le Meridian, Delhi.

2019-20

  • In September 2019, CUMI Industrial Ceramics division was awarded the CSIR Diamond Jubilee Technology 2018 for the technology of Metallization of Ceramics.
  • CII Kai-Zen Award - Innovative Category; Carborundum Universal Limited, Maraimalai Nagar participated in Innovative Kaizen Category in the theme of “To develop Innovative New Resin for Abrasive Manufacturing through Robust Design Approach” Mr. G. Ananda Kumar and Mrs. C. Meenakshi participated and emerged as 2nd WINNER.
  • Maniyar Hydel plant won the ‘Safety Award 2019 for Outstanding Performance in Industrial Safety’’ from Kerala State Factories& Boilers Department under Small Factories category in March 2020.
  • CUMI-SEZ White Fused Alumina plant won the ‘Suraksha Puraskar’ from National Safety Council (Kerala Chapter) under Small Factories category in March 2020.
  • Maniyar Hydel plant won the ‘Sreshta Suraksha Puraskar’ from National Safety Council (Kerala Chapter) under Small Factories category in March 2020.

Milestones

1954 - 1963

  • Incorporated as a joint venture between Carborundum Company, USA.
  • Universal Grinding Wheel Company, UK and the Murugappa Group, India.
  • Acquired a Coated Abrasives facility from Ajax Products Pvt. Ltd.
  • Bonded Abrasives facility set up at Chennai, India.
  • Bauxite mining at Bhatia, Gujarat, India.

1964 - 1973

  • Manufacture of Super Refractories at Chennai, India.
  • Brown Aluminium Oxide grains plant at Edappally, India.
  • Calcination facility at Okha, Gujarat, India.

1974 - 1983

  • Acquisition of Eastern Abrasives Ltd, a Coated Abrasives manufacturer in Kolkata, India.
  • Second Bonded Abrasives plant at Hosur, near Bengaluru, India.
  • Established MMTCL as a joint venture with Morgan Group plc. for ceramic fibres.

1984 - 1993

  • Expansion of Bonded Abrasives plant at Hosur, India with a modern facility for vitrified grinding wheels.
  • Silicon Carbide plant at Koratty, India & Refractories plant at Ranipet, India.
  • Industrial Ceramics plant at Hosur, India.
  • Acquisition of 40% interest in Wendt (India) Ltd., a company manufacturing Super Abrasives.

1994 - 2003

  • 12 MW Hydel project at Maniyar, Kerala, India.
  • Second unit at Edapally, India for manufacture of Brown Aluminium Oxide grains.
  • Acquired a controlling interest in Sterling Abrasives Limited, Ahmedabad, India.
  • Acquired a controlling interest in Cutfast Abrasive Tools Limited and Cutfast Polymers Limited and subsequent mergers.
  • Established CUMI America Inc., USA & CUMI Australia Pty. Ltd.
  • Established a 5.5 MW natural gas based thermal power plant in Nallur, Tamil Nadu, India, through SEDCO.
  • Acquired Prodorite Anti-Corrosives Ltd., a leading player in anti-corrosion engineering.
  • Cloth processing facility at Maraimalainagar, Tamil Nadu.

2004 - 2013

  • Modern Silicon Carbide micro grit plant in Koratty, India.
  • Modern polymer manufacturing facility near Chennai, India.
  • Establishment of CUMI Middle East.
  • Establishment of state-of-the-art Coated Abrasives plant at Sriperumbudur, Chennai, India.
  • Acquisition of Monolothic Refractory facility in Jabalpur, India.
  • Acquisition of Volzhsky Abrasive Works, Russia.
  • Acquisition of 51% holding in Foskor Zirconia (Pty) Ltd, South Africa.
  • Establishment of world class facility for wear resistant liner tiles at Hosur, India.
  • Manufacturing facility for Thin Wheels at Uttarkhand, India.
  • Manufacturing facility for Power Tools at Jigani, Bengaluru, India.
  • Commissioning of a modern 1,000 tonne Vitrified Bonded Abrasives plant and
  • 2,000 tonne Organic Bonded Abrasives facility in China.
  • Establishment of state-of-the-art Metallised Cylinders plant at Hosur, India.
  • Establishment of state-of-the-art Super Refractories plant II at Serkaddu, India.
  • Setting up of a modern facility for manufacture of anti-corrosive products at Serkaddu, India.
  • Establishment of automated Silicon Carbide Micro Grit plant in Cochin SEZ, India.
  • Acquisition of Thukela Refractories Isithebe Pty Ltd, South Africa, a fused mineral manufacturing facility in South Africa.
  • Setting up of the Ceramic Foam Refractories plant at Kochi, in collaboration with Cellaris Ltd, Israel.

2014-2018

  • Establishment of CUMI Europe.
  • Commencement of Toll manufacturing model operations in China.
  • Amalgamation of Cellaris Refractories with CUMI.
  • Doubled the capacity of the Metallized Cylinder plant in Hosur, with the machinery and technology acquired from NTK, Japan.
  • A state-of-the-art Surface Technology Centre was opened at the Bonded Abrasives Plant at Tiruvottiyur.
  • Inaugurated a Centre of Excellence for Research in Technical Ceramics for industrial & advanced applications at Hosur, Tamil Nadu.
  • Commissioned three fusion plants at its Electro-mineral Complex at Kochi, Kerala.
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