Carborundum Universal Ltd - Stock Valuation and Financial Performance

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

Carborundum Univer. Share Price

1,691.45 7.05 0.42%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Carborundum Univer.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Carborundum Universal stock performance -

mw4me loader
P/E Ratio (CD):
69.77
Market Cap:
32,181.3 Cr.
52-wk low:
1,026
52-wk high:
1,835.7

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 Semi Strong which suggest that the price of Carborundum Universal Ltd is likely to Rise-somewhat 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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 6.6%10%12.6%13%13.8%13.6%14.2%13.8%13.4%13.9%-
Value Creation
Index
-0.5-0.3-0.10.00.00.00.10.0-00.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,0501,9442,1122,3682,6892,5992,6323,3254,6544,7024,702
Sales YoY Gr.--5.2%8.7%12.1%13.6%-3.3%1.3%26.3%40%1%-
Adj EPS 4.57.21011.212.913.515.617.519.823.224.2
YoY Gr.-60.5%37.4%12.8%15.1%4.8%15.2%12.5%13%17.3%-
BVPS (₹) 57.763.273.182.590.897.7111.9123.7147.4163163
Adj Net
Profit
84.8136188212244256295333376442461
Cash Flow from Ops. 326178295213202407451245430602-
Debt/CF from Ops. 11.80.50.60.50.20.10.90.50.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.7%11.8%21.3%1%
Adj EPS 20%12.5%14.2%17.3%
BVPS12.2%12.4%13.4%10.6%
Share Price 25.8% 36.8% 38.2% 42.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
7.71214.614.414.914.314.814.814.514.914.9
Op. Profit
Mgn %
12.915.816.516.916.315.317.816.214.115.716
Net Profit
Mgn %
4.47.69.39.19.11011.610.58.79.79.8
Debt to
Equity
0.30.30.10.10.1000.10.100
Working Cap
Days
15015014114514615214215213212881
Cash Conv.
Cycle
98999294991048470728254

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 14.90%

Sales growth is growing at healthy rate in last 3 years 21.34%

Net Profit is growing at healthy rate in last 3 years 14.21%

Sales growth is not so good in last 4 quarters at 0.64%

Latest Financials - Carborundum Universal Ltd.

Standalone Consolidated
TTM EPS (₹) 18.4 24.2
TTM Sales (₹ Cr.) 2,633 4,702
BVPS (₹.) 119.4 163
Reserves (₹ Cr.) 2,253 3,082
P/BV 14.16 10.38
PE 91.85 69.77
From the Market
52 Week Low / High (₹) 1026.00 / 1835.65
All Time Low / High (₹) 2.55 / 1835.65
Market Cap (₹ Cr.) 32,181
Equity (₹ Cr.) 19
Face Value (₹) 1
Industry PE 84.5

Management X-Ray of Carborundum Univer.:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.140.140.140.140.140.020.020.020.020.00
* 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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales2,0501,9442,1122,3682,6892,5992,6323,3254,6544,702
Operating Expenses 1,7871,6431,7841,9692,2522,2022,1682,7894,0043,965
Manufacturing Costs5725105536557427437038431,0571,031
Material Costs7196817367989558878981,1581,7141,697
Employee Cost 274250272311325341345416688716
Other Costs 222201224205230231221373545521
Operating Profit 263301329399437397464536651737
Operating Profit Margin (%) 12.8%15.5%15.6%16.8%16.3%15.3%17.6%16.1%14.0%15.7%
Other Income 27302923294633417879
Interest 252318986462418
Depreciation 100879610610810599115187191
Exceptional Items 5700000-140250
Profit Before Tax 220237262322369351395477580650
Tax 82817810212176102127138174
Profit After Tax 138155184220248275293350442476
PAT Margin (%) 6.7%8.0%8.7%9.3%9.2%10.6%11.1%10.5%9.5%10.1%
Adjusted EPS (₹)7.17.79.311.413.114.415.017.621.824.2
Dividend Payout Ratio (%)18%20%19%20%21%19%20%20%16%17%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 1,0891,1911,3811,5611,7191,8522,1242,3512,8023,103
Share Capital 19191919191919191919
Reserves 1,0701,1721,3621,5421,7011,8332,1052,3322,7833,084
Minority Interest5862666152464686128139
Debt277263149125926041212228100
Long Term Debt57367754584328
Short Term Debt22022714211887553620418573
Trade Payables171134165198209195303370336398
Others Liabilities 222209152142150130162277354301
Total Liabilities 1,8161,8601,9132,0882,2222,2832,6763,2963,8484,041

Fixed Assets

Gross Block1,4797448901,0201,0791,2241,3501,6722,3822,554
Accumulated Depreciation65385185284384475573666855999
Net Fixed Assets8266597057366957487771,0061,5271,555
CWIP 43857330463928588784
Investments 41131124180227189127138161172
Inventories388370387438533508461691899850
Trade Receivables370367381475514402478485627679
Cash Equivalents 9911312612998294689352400558
Others Assets4813411899110104116567146144
Total Assets 1,8161,8601,9132,0882,2222,2832,6763,2963,8484,041

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 326178295213202407451245430602
PBT 220237262322369351395477580650
Adjustment 551058993938387107166182
Changes in Working Capital 122-8123-91-1407372-207-153-21
Tax Paid -71-84-79-111-120-99-103-133-163-210
Cash Flow From Investing Activity -7-73-81-75-80-93-269-460-257-186
Capex 6-84-106-92-95-123-103-560-301-234
Net Investments 100000-19620805
Others -14122517153029-1084442
Cash Flow From Financing Activity -162-86-207-83-109-135-6689-133-214
Net Proceeds from Shares 52333336314
Net Proceeds from Borrowing -131-20-81-3000026-5
Interest Paid -25-23-18-9-8-6-4-6-22-15
Dividend Paid -25-38-19-33-52-76-38-65-77-79
Others 15-8-92-42-51-56-27154-63-128
Net Cash Flow 1572075513179115-12640201
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)12.6313.6514.314.9515.1215.4214.7615.6617.1616.14
ROCE (%)16.4617.6818.3720.4621.519.119.4920.3321.4721.28
Asset Turnover Ratio1.141.121.181.21.261.151.071.121.321.21
PAT to CFO Conversion(x)2.361.151.60.970.811.481.540.70.971.26
Working Capital Days
Receivable Days66666165666460524350
Inventory Days69676263657367636267
Payable Days9281748378831011067579

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 12-Jul-2024 16:01 is ₹1,691.5.
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 12-Jul-2024 16:01 the market cap of Carborundum Univer. stood at ₹32,181.3.
The latest P/E ratio of Carborundum Univer. as of 12-Jul-2024 16:01 is 91.85.
The latest P/B ratio of Carborundum Univer. as of 12-Jul-2024 16:01 is 14.16.
The 52-week high of Carborundum Univer. is ₹1,835.7 and the 52-week low is ₹1,026.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Carborundum Univer. is ₹2,633 ( 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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