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Last Updated on: 31 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 513375 | NSE: CARBORUNIV

Carborundum Universal Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 31, 2024, 8:51 am

Market Cap 23,942 Cr.
Current Price 1,258
High / Low 1,841/1,026
Stock P/E60.0
Book Value 175
Dividend Yield0.32 %
ROCE20.1 %
ROE15.6 %
Face Value 1.00
PEG Ratio5.38

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Carborundum Universal Ltd

Competitors of Carborundum Universal Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Wendt India Ltd 3,282 Cr. 16,457 18,034/10,40179.4 1,1480.30 %24.7 %18.5 % 10.0
Grindwell Norton Ltd 21,330 Cr. 1,926 2,960/1,85057.0 1860.88 %24.6 %19.0 % 5.00
Carborundum Universal Ltd 23,942 Cr. 1,258 1,841/1,02660.0 1750.32 %20.1 %15.6 % 1.00
Industry Average16,184.67 Cr6,547.0065.47503.000.50%23.13%17.70%5.33

All Competitor Stocks of Carborundum Universal Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7347577128458998691,1401,1281,1871,2001,2031,1461,151
Expenses6045985936957427581,0129651,0161,0091,034979960
Operating Profit130158118150158111127163171190169168191
OPM %18%21%17%18%18%13%11%14%14%16%14%15%17%
Other Income921414131832183059413125
Interest1111124577555
Depreciation25272627283443444753464648
Profit before tax11413210613714193112131147190160148163
Tax %24%27%26%25%21%37%23%29%23%22%26%30%31%
Net Profit879678103111588694113149118104112
EPS in Rs4.634.784.075.145.353.004.154.695.757.225.965.365.86

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,9881,9662,1182,0421,9442,1122,3742,6892,5992,6323,3254,6544,701
Expenses1,5981,7271,8621,8081,6361,7771,9752,2502,1992,1662,7843,9993,982
Operating Profit390239256234308336400439400466540655719
OPM %20%12%12%11%16%16%17%16%15%18%16%14%15%
Other Income14121811239413746623256136156
Interest252728252318986462422
Depreciation577191100879610610810599115187192
Profit before tax323152154220237262322369351395477580660
Tax %28%41%38%37%34%30%32%33%22%26%27%24%
Net Profit2339095138155184220248275293350442482
EPS in Rs11.704.794.877.057.659.2711.4113.0914.3815.0017.5621.8024.40
Dividend Payout %17%26%26%18%20%19%20%21%19%20%20%16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-61.37%5.56%45.26%12.32%18.71%19.57%12.73%10.89%6.55%19.45%26.29%
Change in YoY Net Profit Growth (%)0.00%66.93%39.71%-32.94%6.39%0.86%-6.84%-1.84%-4.34%12.91%6.83%

Carborundum Universal Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:12%
3 Years:21%
TTM:1%
Compounded Profit Growth
10 Years:18%
5 Years:13%
3 Years:17%
TTM:-10%
Stock Price CAGR
10 Years:21%
5 Years:31%
3 Years:9%
1 Year:13%
Return on Equity
10 Years:14%
5 Years:15%
3 Years:15%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:32 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital19191919191919191919191919
Reserves1,0401,0871,0701,1731,3641,5451,7051,8392,1132,3452,8023,1073,316
Borrowings435456340320156129977062240277172179
Other Liabilities409423387348374394401354486692774793906
Total Liabilities1,9031,9861,8161,8601,9132,0882,2222,2832,6793,2963,8724,0914,419
Fixed Assets8448977936597057366957487771,0061,5271,5551,575
CWIP844043857330463928588784107
Investments263741131124180227189127138161172189
Other Assets9501,0129389851,0111,1411,2541,3071,7472,0942,0962,2802,548
Total Assets1,9031,9861,8161,8601,9132,0882,2222,2832,6793,2963,8724,0914,419

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +195153326178295213202407451245430602
Cash from Investing Activity +-205-122-136-75-72-75-85-105-266-465-248-229
Cash from Financing Activity +-29-37-162-86-207-83-109-135-6689-133-214
Net Cash Flow-39-6281716557168119-13149159

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow390.00-196.00-200.00-106.00-12.00180.00271.00342.00330.00404.00300.00378.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days677266696673705666534953
Inventory Days206213198198192199204209187218191183
Days Payable90988772829080801231177286
Cash Conversion Cycle183186177196176182194185130154169150
Working Capital Days90958399981031079682808580
ROCE %12%11%10%17%18%20%21%18%19%20%20%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters41.96%41.96%41.94%41.92%41.90%41.89%41.52%41.51%41.28%41.27%41.24%41.16%
FIIs9.84%10.54%10.20%9.77%9.38%9.08%9.36%9.98%10.15%10.63%11.72%12.76%
DIIs26.50%25.90%26.32%26.82%27.42%28.18%28.82%29.38%29.74%29.84%29.06%28.24%
Government0.00%0.00%0.00%0.00%0.02%0.02%0.02%0.02%0.03%0.01%0.01%0.01%
Public21.70%21.61%21.54%21.49%21.28%20.82%20.28%19.12%18.80%18.24%17.99%17.80%
No. of Shareholders51,27659,92858,66256,41556,62852,78048,73457,15857,10156,66952,94364,342

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Small Cap Fund4,939,8422.23555.563,265,5822024-12-2951.27%
Kotak Small Cap Fund - Regular Plan4,000,0513.12449.873,265,5822024-12-2922.49%
SBI Multicap Fund3,500,0002.68393.633,265,5822024-12-297.18%
SBI Magnum Midcap Fund3,320,0002.34373.383,265,5822024-12-291.67%
Nippon India Small Cap Fund3,265,5820.8367.263,265,5822024-12-290%
SBI Flexi Cap Fund2,802,0001.56315.133,265,5822024-12-29-14.2%
Franklin India Smaller Companies Fund1,812,8831.72203.893,265,5822024-12-29-44.49%
Nippon India Growth Fund1,675,0410.77188.383,265,5822024-12-29-48.71%
Axis Small Cap Fund1,650,6180.95185.643,265,5822024-12-29-49.45%
HSBC Small Cap Fund - Regular Plan1,625,8211.31182.853,265,5822024-12-29-50.21%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)24.2721.8017.5715.0114.39
Diluted EPS (Rs.)24.2221.8017.5714.9914.38
Cash EPS (Rs.)32.7531.1523.4019.9119.10
Book Value[Excl.RevalReserv]/Share (Rs.)171.61155.23129.03114.87100.52
Book Value[Incl.RevalReserv]/Share (Rs.)171.61155.23129.03114.87100.52
Revenue From Operations / Share (Rs.)247.15245.04175.12138.81137.21
PBDIT / Share (Rs.)42.8638.3630.3626.2123.42
PBIT / Share (Rs.)32.8428.5024.3320.9717.90
PBT / Share (Rs.)31.8728.5724.0320.0217.57
Net Profit / Share (Rs.)22.7221.2917.3714.6613.58
NP After MI And SOA / Share (Rs.)24.2421.8017.5615.0014.38
PBDIT Margin (%)17.3415.6517.3318.8817.06
PBIT Margin (%)13.2811.6213.8915.1013.04
PBT Margin (%)12.8911.6513.7214.4212.80
Net Profit Margin (%)9.198.689.9110.569.89
NP After MI And SOA Margin (%)9.808.8910.0210.8010.48
Return on Networth / Equity (%)14.7514.6714.1013.3314.65
Return on Capital Employeed (%)17.9816.9818.1117.8817.49
Return On Assets (%)11.1010.5410.0310.5711.88
Long Term Debt / Equity (X)0.010.010.000.000.00
Total Debt / Equity (X)0.030.080.080.010.03
Asset Turnover Ratio (%)1.160.870.890.800.86
Current Ratio (X)3.202.742.133.673.79
Quick Ratio (X)1.951.531.242.682.36
Inventory Turnover Ratio (X)1.741.872.071.491.46
Dividend Payout Ratio (NP) (%)14.4216.0517.070.0027.79
Dividend Payout Ratio (CP) (%)10.2011.0512.700.0020.08
Earning Retention Ratio (%)85.5883.9582.930.0072.21
Cash Earning Retention Ratio (%)89.8088.9587.300.0079.92
Interest Coverage Ratio (X)44.4730.96102.13138.7470.14
Interest Coverage Ratio (Post Tax) (X)24.5717.1359.4282.6241.67
Enterprise Value (Cr.)23791.4918759.1015095.509050.983970.53
EV / Net Operating Revenue (X)5.064.034.543.441.53
EV / EBITDA (X)29.1725.7526.1918.218.95
MarketCap / Net Operating Revenue (X)5.124.044.563.671.60
Retention Ratios (%)85.5783.9482.920.0072.20
Price / BV (X)7.716.676.414.532.24
Price / Net Operating Revenue (X)5.124.044.563.671.60
EarningsYield0.010.020.020.020.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Carborundum Universal Ltd as of December 31, 2024 is: 1,643.24

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 31, 2024, Carborundum Universal Ltd is Undervalued by 30.62% compared to the current share price 1,258.00

Intrinsic Value of Carborundum Universal Ltd as of December 31, 2024 is: 1,826.53

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 31, 2024, Carborundum Universal Ltd is Undervalued by 45.19% compared to the current share price 1,258.00

Last 5 Year EPS CAGR: 11.15%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.17%, which is a positive sign.
  2. The company has higher reserves (1,885.08 cr) compared to borrowings (225.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.15 cr) and profit (346.31 cr) over the years.
  1. The stock has a high average Working Capital Days of 91.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 173.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Carborundum Universal Ltd:
    1. Net Profit Margin: 9.19%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 17.98% (Industry Average ROCE: 23.13%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 14.75% (Industry Average ROE: 17.7%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 24.57
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.95
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 60 (Industry average Stock P/E: 65.47)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.03
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Carborundum Universal Ltd. is a Public Limited Listed company incorporated on 21/04/1954 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L29224TN1954PLC000318 and registration number is 000318. Currently company belongs to the Industry of Abrasives And Grinding Wheels. Company’s Total Operating Revenue is Rs. 2215.23 Cr. and Equity Capital is Rs. 18.99 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Abrasives And Grinding Wheels'Parry House', Chennai (Madras) Tamil Nadu 600001investorservices@cumi.murugappa.com
http://www.cumi-murugappa.com
Management
NamePosition Held
Mr. M M MurugappanChairman
Mr. N AnanthaseshanManaging Director
Mr. Soundara KumarDirector
Mr. Sanjay JayavarthanaveluDirector
Mr. Aroon RamanDirector
Mr. Sridharan RangarajanDirector
Mr. P S RaghavanDirector
Mr. Sujjain S TalwarDirector

FAQ

What is the latest intrinsic value of Carborundum Universal Ltd?

The latest intrinsic value of Carborundum Universal Ltd as on 31 December 2024 is ₹1643.24, which is 30.62% higher than the current market price of ₹1,258.00. The stock has a market capitalization of 23,942 Cr. and recorded a high/low of 1,841/1,026 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹3,316 Cr and total liabilities of ₹4,419 Cr.

What is the Market Cap of Carborundum Universal Ltd?

The Market Cap of Carborundum Universal Ltd is 23,942 Cr..

What is the current Stock Price of Carborundum Universal Ltd as on 31 December 2024?

The current stock price of Carborundum Universal Ltd as on 31 December 2024 is 1,258.

What is the High / Low of Carborundum Universal Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Carborundum Universal Ltd stocks is 1,841/1,026.

What is the Stock P/E of Carborundum Universal Ltd?

The Stock P/E of Carborundum Universal Ltd is 60.0.

What is the Book Value of Carborundum Universal Ltd?

The Book Value of Carborundum Universal Ltd is 175.

What is the Dividend Yield of Carborundum Universal Ltd?

The Dividend Yield of Carborundum Universal Ltd is 0.32 %.

What is the ROCE of Carborundum Universal Ltd?

The ROCE of Carborundum Universal Ltd is 20.1 %.

What is the ROE of Carborundum Universal Ltd?

The ROE of Carborundum Universal Ltd is 15.6 %.

What is the Face Value of Carborundum Universal Ltd?

The Face Value of Carborundum Universal Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Carborundum Universal Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE