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Last Updated on: 22 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 513375 | NSE: CARBORUNIV

Fundamental Analysis of Carborundum Universal Ltd

About the Company - Carborundum Universal Ltd

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

Basic Stock Data of Carborundum Universal Ltd

Last Updated: May 15, 2024, 7:43 am

Market Cap 28,698 Cr.
Current Price 1,512
High / Low1,550/1,026
Stock P/E62.2
Book Value 164
Dividend Yield0.23 %
ROCE20.1 %
ROE15.5 %
Face Value 1.00
PEG Ratio5.58

Data Source: screener.in

Competitors of Carborundum Universal Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Wendt India Ltd 2,860 Cr. 14,30215,990/9,02269.8 1,0610.56 %27.0 %20.4 % 10.0
Industry Average2,860.00 Cr14,302.0069.801,061.000.56%27.00%20.40%10.00

Carborundum Universal Ltd Quarterly Results

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: May 5, 2024, 6:21 am

Carborundum Universal Ltd Quarterly Chart

Carborundum Universal Ltd Profit & Loss

Last Updated: May 2, 2024, 6:21 am

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%

Carborundum Universal Ltd 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 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:16%
TTM:15%
Stock Price CAGR
10 Years:26%
5 Years:37%
3 Years:44%
1 Year:46%
Return on Equity
10 Years:14%
5 Years:15%
3 Years:15%
Last Year:16%

Last Updated: May 15, 2024, 7:43 am

Carborundum Universal Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital19191919191919191919191919
Reserves9281,0401,0871,0701,1731,3641,5451,7051,8392,1132,3452,8022,845
Preference Capital000000554580
Borrowings399435456340320156124926657232277183
Other Liabilities418409423387348374399406358491700774804
Total Liabilities1,7641,9031,9861,8161,8601,9132,0882,2222,2832,6793,2963,8723,851
Fixed Assets6628448977936597057366957487771,0061,5271,494
CWIP83844043857330463928588774
Investments40263741131124180227189127138161162
Other Assets9799501,0129389851,0111,1411,2541,3071,7472,0942,0962,121
Total Assets1,7641,9031,9861,8161,8601,9132,0882,2222,2832,6793,2963,8723,851

Carborundum Universal Ltd Reserves and Borrowings Chart

Carborundum Universal Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 239195153326178295213202407451245430
Cash from Investing Activity -101-205-122-136-75-72-75-85-105-266-465-248
Cash from Financing Activity -86-29-37-162-86-207-83-109-135-6689-133
Net Cash Flow51-39-6281716557168119-13149

Carborundum Universal Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days666772666966737056665349
Inventory Days231206213198198192199204209187218191
Days Payable95909887728290808012311772
Cash Conversion Cycle203183186177196176182194185130154169
Working Capital Days89909583999810310796828085
ROCE %26%12%11%10%17%18%20%21%18%19%20%20%

Carborundum Universal Ltd Financial Efficiency Indicators Chart

Carborundum Universal Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters42.00%41.96%41.96%41.94%41.92%41.90%41.89%41.52%41.51%41.28%41.27%41.24%
FIIs7.74%9.84%10.54%10.20%9.77%9.38%9.08%9.36%9.98%10.15%10.63%11.72%
DIIs27.91%26.50%25.90%26.32%26.82%27.42%28.18%28.82%29.38%29.74%29.84%29.06%
Government0.00%0.00%0.00%0.00%0.00%0.02%0.02%0.02%0.02%0.03%0.01%0.01%
Public22.35%21.70%21.61%21.54%21.49%21.28%20.82%20.28%19.12%18.80%18.24%17.99%
No. of Shareholders44,30551,27659,92858,66256,41556,62852,78048,73457,15857,10156,66952,943

Carborundum Universal Ltd Shareholding Pattern Chart

No. of Carborundum Universal Ltd Shareholders

Carborundum Universal Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Small Cap Fund49398422.23555.56
Kotak Small Cap Fund - Regular Plan40000513.12449.87
SBI Multicap Fund35000002.68393.63
SBI Magnum Midcap Fund33200002.34373.38
Nippon India Small Cap Fund32655820.8367.26
SBI Flexi Cap Fund28020001.56315.13
Franklin India Smaller Companies Fund18128831.72203.89
Nippon India Growth Fund16750410.77188.38
Axis Small Cap Fund16506180.95185.64
HSBC Small Cap Fund - Regular Plan16258211.31182.85

Carborundum Universal Ltd ROCE Trend

Carborundum Universal Ltd EPS Trend

Carborundum Universal Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)21.8017.5715.0114.3913.10
Diluted EPS (Rs.)21.8017.5714.9914.3813.07
Cash EPS (Rs.)31.1523.4019.9119.1017.76
Book Value[Excl.RevalReserv]/Share (Rs.)155.23129.03114.87100.5293.92
Book Value[Incl.RevalReserv]/Share (Rs.)155.23129.03114.87100.5293.92
Revenue From Operations / Share (Rs.)245.04175.12138.81137.21142.16
PBDIT / Share (Rs.)38.3630.3626.2123.4224.62
PBIT / Share (Rs.)28.5024.3320.9717.9018.89
PBT / Share (Rs.)28.5724.0320.0217.5718.44
Net Profit / Share (Rs.)21.2917.3714.6613.5812.04
NP After MI And SOA / Share (Rs.)21.8017.5615.0014.3813.09
PBDIT Margin (%)15.6517.3318.8817.0617.31
PBIT Margin (%)11.6213.8915.1013.0413.28
PBT Margin (%)11.6513.7214.4212.8012.97
Net Profit Margin (%)8.689.9110.569.898.46
NP After MI And SOA Margin (%)8.8910.0210.8010.489.21
Return on Networth / Equity (%)14.6714.1013.3314.6514.36
Return on Capital Employeed (%)16.9818.1117.8817.4919.56
Return On Assets (%)10.5410.0310.5711.8811.09
Long Term Debt / Equity (X)0.010.000.000.000.00
Total Debt / Equity (X)0.080.080.010.030.05
Asset Turnover Ratio (%)0.870.890.800.860.98
Current Ratio (X)2.742.133.673.793.21
Quick Ratio (X)1.531.242.682.361.89
Inventory Turnover Ratio (X)1.872.071.491.461.80
Dividend Payout Ratio (NP) (%)16.0517.070.0027.7920.99
Dividend Payout Ratio (CP) (%)11.0512.700.0020.0814.60
Earning Retention Ratio (%)83.9582.930.0072.2179.01
Cash Earning Retention Ratio (%)88.9587.300.0079.9285.40
Interest Coverage Ratio (X)30.96102.13138.7470.1454.89
Interest Coverage Ratio (Post Tax) (X)17.1359.4282.6241.6727.84
Enterprise Value (Cr.)18759.1015095.509050.983970.537728.99
EV / Net Operating Revenue (X)4.034.543.441.532.87
EV / EBITDA (X)25.7526.1918.218.9516.60
MarketCap / Net Operating Revenue (X)4.044.563.671.602.86
Retention Ratios (%)83.9482.920.0072.2079.00
Price / BV (X)6.676.414.532.244.46
Price / Net Operating Revenue (X)4.044.563.671.602.86
EarningsYield0.020.020.020.060.03

Carborundum Universal Ltd Profitability Ratios (%)

Carborundum Universal Ltd Liquidity Ratios

Carborundum Universal Ltd Liquidity Ratios (%)

Carborundum Universal Ltd Interest Coverage Ratios (X)

Carborundum Universal Ltd Valuation Ratios

Fair Value

Fair Value: ₹1,584.76

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.

Undervalued: 4.81% compared to the current price ₹1512

Intrinsic Value: ₹1,761.53

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 16.50% compared to the current price ₹1512

Last 5 Year EPS CAGR: 11.15%

*Investments are subject to market risks

Strength and Weakness of Carborundum Universal Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 17.67%, which is a positive sign.
  2. The company has higher reserves (1,681.23 cr) compared to borrowings (2.08 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 92.25, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 177.92, which may not be favorable.

Should I Buy Carborundum Universal Ltd Share Now?

  • 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: 8.68%
      • 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: 16.98% (Industry Average ROCE: 27%)
      • 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%: 14.67% (Industry Average ROE: 20.4%)
      • 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): 17.13
      • 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: 1.53
      • 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: 62.2 (Industry average Stock P/E: 70.1)
      • 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: 0.08
      • 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:

FAQ

What is the latest fair value of Carborundum Universal Ltd?

The latest fair value of Carborundum Universal Ltd is ₹1584.76.

What is the Market Cap of Carborundum Universal Ltd?

The Market Cap of Carborundum Universal Ltd is 28,698 Cr..

What is the current Stock Price of Carborundum Universal Ltd as on 18 May 2024?

The current stock price of Carborundum Universal Ltd as on 18 May 2024 is 1,512.

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

In FY 2024, the High / Low of Carborundum Universal Ltd stocks is ₹1,550/1,026.

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

The Stock P/E of Carborundum Universal Ltd is 62.2.

What is the Book Value of Carborundum Universal Ltd?

The Book Value of Carborundum Universal Ltd is 164.

What is the Dividend Yield of Carborundum Universal Ltd?

The Dividend Yield of Carborundum Universal Ltd is 0.23 %.

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 15.5 %.

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