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.

INDUSTRY	ADDRESS	CONTACT
Abrasives And Grinding Wheels	'Parry House', Chennai (Madras) Tamil Nadu 600001	investorservices@cumi.murugappa.com http://www.cumi-murugappa.com

Management
Name	Position Held
Mr. M M Murugappan	Chairman
Mr. N Ananthaseshan	Managing Director
Mr. Soundara Kumar	Director
Mr. Sanjay Jayavarthanavelu	Director
Mr. Aroon Raman	Director
Mr. Sridharan Rangarajan	Director
Mr. P S Raghavan	Director
Mr. Sujjain S Talwar	Director

Basic Stock Data of Carborundum Universal Ltd

Last Updated: July 26, 2024, 10:55 pm

Market Cap	33,113 Cr.
Current Price	1,741
High / Low	1,841/1,026
Stock P/E	71.6
Book Value	164
Dividend Yield	0.23 %
ROCE	20.1 %
ROE	15.6 %
Face Value	1.00
PEG Ratio	6.42

Data Source: screener.in

Competitors of Carborundum Universal Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Wendt India Ltd	3,038 Cr.	15,100	17,057/10,401	76.7	1,061	0.33 %	24.7 %	18.5 %	10.0
Carborundum Universal Ltd	33,113 Cr.	1,741	1,841/1,026	71.6	164	0.23 %	20.1 %	15.6 %	1.00
Industry Average	3,038.00 Cr	15,100.00		76.70	1,061.00	0.33%	24.70%	18.50%	10.00

Carborundum Universal Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	734	757	712	845	899	869	1,140	1,128	1,187	1,200	1,203	1,146	1,151
Expenses	604	598	593	695	742	758	1,012	965	1,016	1,009	1,034	979	960
Operating Profit	130	158	118	150	158	111	127	163	171	190	169	168	191
OPM %	18%	21%	17%	18%	18%	13%	11%	14%	14%	16%	14%	15%	17%
Other Income	9	2	14	14	13	18	32	18	30	59	41	31	25
Interest	1	1	1	1	1	2	4	5	7	7	5	5	5
Depreciation	25	27	26	27	28	34	43	44	47	53	46	46	48
Profit before tax	114	132	106	137	141	93	112	131	147	190	160	148	163
Tax %	24%	27%	26%	25%	21%	37%	23%	29%	23%	22%	26%	30%	31%
Net Profit	87	96	78	103	111	58	86	94	113	149	118	104	112
EPS in Rs	4.63	4.78	4.07	5.14	5.35	3.00	4.15	4.69	5.75	7.22	5.96	5.36	5.86

Last Updated: July 11, 2024, 11:14 am

Carborundum Universal Ltd Quarterly Chart

Carborundum Universal Ltd Profit & Loss

Last Updated: July 10, 2024, 3:59 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	1,988	1,966	2,118	2,042	1,944	2,112	2,374	2,689	2,599	2,632	3,325	4,654	4,701
Expenses	1,598	1,727	1,862	1,808	1,636	1,777	1,975	2,250	2,199	2,166	2,784	3,999	3,982
Operating Profit	390	239	256	234	308	336	400	439	400	466	540	655	719
OPM %	20%	12%	12%	11%	16%	16%	17%	16%	15%	18%	16%	14%	15%
Other Income	14	12	18	112	39	41	37	46	62	32	56	136	156
Interest	25	27	28	25	23	18	9	8	6	4	6	24	22
Depreciation	57	71	91	100	87	96	106	108	105	99	115	187	192
Profit before tax	323	152	154	220	237	262	322	369	351	395	477	580	660
Tax %	28%	41%	38%	37%	34%	30%	32%	33%	22%	26%	27%	24%
Net Profit	233	90	95	138	155	184	220	248	275	293	350	442	482
EPS in Rs	11.70	4.79	4.87	7.05	7.65	9.27	11.41	13.09	14.38	15.00	17.56	21.80	24.40
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

Year	2012-2013	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
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:	17%
TTM:	16%

Stock Price CAGR
10 Years:	26%
5 Years:	40%
3 Years:	38%
1 Year:	42%

Return on Equity
10 Years:	14%
5 Years:	15%
3 Years:	15%
Last Year:	16%

Last Updated: July 26, 2024, 5:25 pm

Carborundum Universal Ltd Balance Sheet

Last Updated: July 10, 2024, 3:59 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	19	19	19	19	19	19	19	19	19	19	19	19	19
Reserves	928	1,040	1,087	1,070	1,173	1,364	1,545	1,705	1,839	2,113	2,345	2,802	2,845
Preference Capital	0	0	0	0	0	0	5	5	4	5	8	0
Borrowings	399	435	456	340	320	156	124	92	66	57	232	277	183
Other Liabilities	418	409	423	387	348	374	399	406	358	491	700	774	804
Total Liabilities	1,764	1,903	1,986	1,816	1,860	1,913	2,088	2,222	2,283	2,679	3,296	3,872	3,851
Fixed Assets	662	844	897	793	659	705	736	695	748	777	1,006	1,527	1,494
CWIP	83	84	40	43	85	73	30	46	39	28	58	87	74
Investments	40	26	37	41	131	124	180	227	189	127	138	161	162
Other Assets	979	950	1,012	938	985	1,011	1,141	1,254	1,307	1,747	2,094	2,096	2,121
Total Assets	1,764	1,903	1,986	1,816	1,860	1,913	2,088	2,222	2,283	2,679	3,296	3,872	3,851

Carborundum Universal Ltd Reserves and Borrowings Chart

Carborundum Universal Ltd Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity	195	153	326	178	295	213	202	407	451	245	430	602
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	-66	89	-133	-214
Net Cash Flow	-39	-6	28	17	16	55	7	168	119	-131	49	159

Carborundum Universal Ltd Financial Efficiency Indicators

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	66	67	72	66	69	66	73	70	56	66	53	49
Inventory Days	231	206	213	198	198	192	199	204	209	187	218	191
Days Payable	95	90	98	87	72	82	90	80	80	123	117	72
Cash Conversion Cycle	203	183	186	177	196	176	182	194	185	130	154	169
Working Capital Days	89	90	95	83	99	98	103	107	96	82	80	85
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

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoters	42.00%	41.96%	41.96%	41.94%	41.92%	41.90%	41.89%	41.52%	41.51%	41.28%	41.27%	41.24%
FIIs	7.74%	9.84%	10.54%	10.20%	9.77%	9.38%	9.08%	9.36%	9.98%	10.15%	10.63%	11.72%
DIIs	27.91%	26.50%	25.90%	26.32%	26.82%	27.42%	28.18%	28.82%	29.38%	29.74%	29.84%	29.06%
Government	0.00%	0.00%	0.00%	0.00%	0.00%	0.02%	0.02%	0.02%	0.02%	0.03%	0.01%	0.01%
Public	22.35%	21.70%	21.61%	21.54%	21.49%	21.28%	20.82%	20.28%	19.12%	18.80%	18.24%	17.99%
No. of Shareholders	44,305	51,276	59,928	58,662	56,415	56,628	52,780	48,734	57,158	57,101	56,669	52,943

Carborundum Universal Ltd Shareholding Pattern Chart

No. of Carborundum Universal Ltd Shareholders

Carborundum Universal Ltd Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
SBI Small Cap Fund	4,939,842	2.23	555.56	1,650,618	2024-07-25	199.27%
Kotak Small Cap Fund - Regular Plan	4,000,051	3.12	449.87	1,650,618	2024-07-25	142.34%
SBI Multicap Fund	3,500,000	2.68	393.63	1,650,618	2024-07-25	112.04%
SBI Magnum Midcap Fund	3,320,000	2.34	373.38	1,650,618	2024-07-25	101.14%
Nippon India Small Cap Fund	3,265,582	0.8	367.26	1,650,618	2024-07-25	97.84%
SBI Flexi Cap Fund	2,802,000	1.56	315.13	1,650,618	2024-07-25	69.75%
Franklin India Smaller Companies Fund	1,812,883	1.72	203.89	1,650,618	2024-07-25	9.83%
Nippon India Growth Fund	1,675,041	0.77	188.38	1,650,618	2024-07-25	1.48%
Axis Small Cap Fund	1,650,618	0.95	185.64	1,650,618	2024-07-25	0%
HSBC Small Cap Fund - Regular Plan	1,625,821	1.31	182.85	1,650,618	2024-07-25	-1.5%

Carborundum Universal Ltd ROCE Trend

Carborundum Universal Ltd EPS Trend

Carborundum Universal Ltd Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	1.00	1.00	1.00	1.00	1.00
Basic EPS (Rs.)	24.27	21.80	17.57	15.01	14.39
Diluted EPS (Rs.)	24.27	21.80	17.57	14.99	14.38
Cash EPS (Rs.)	32.74	31.15	23.40	19.91	19.10
Book Value[Excl.RevalReserv]/Share (Rs.)	171.57	155.23	129.03	114.87	100.52
Book Value[Incl.RevalReserv]/Share (Rs.)	171.57	155.23	129.03	114.87	100.52
Revenue From Operations / Share (Rs.)	247.09	245.04	175.12	138.81	137.21
PBDIT / Share (Rs.)	42.85	38.36	30.36	26.21	23.42
PBIT / Share (Rs.)	32.83	28.50	24.33	20.97	17.90
PBT / Share (Rs.)	31.86	28.57	24.03	20.02	17.57
Net Profit / Share (Rs.)	22.72	21.29	17.37	14.66	13.58
NP After MI And SOA / Share (Rs.)	24.24	21.80	17.56	15.00	14.38
PBDIT Margin (%)	17.34	15.65	17.33	18.88	17.06
PBIT Margin (%)	13.28	11.62	13.89	15.10	13.04
PBT Margin (%)	12.89	11.65	13.72	14.42	12.80
Net Profit Margin (%)	9.19	8.68	9.91	10.56	9.89
NP After MI And SOA Margin (%)	9.80	8.89	10.02	10.80	10.48
Return on Networth / Equity (%)	14.75	14.67	14.10	13.33	14.65
Return on Capital Employeed (%)	17.98	16.98	18.11	17.88	17.49
Return On Assets (%)	11.10	10.54	10.03	10.57	11.88
Long Term Debt / Equity (X)	0.01	0.01	0.00	0.00	0.00
Total Debt / Equity (X)	0.03	0.08	0.08	0.01	0.03
Asset Turnover Ratio (%)	1.16	0.87	0.89	0.80	0.86
Current Ratio (X)	3.20	2.74	2.13	3.67	3.79
Quick Ratio (X)	1.95	1.53	1.24	2.68	2.36
Inventory Turnover Ratio (X)	1.74	1.87	2.07	1.49	1.46
Dividend Payout Ratio (NP) (%)	0.00	16.05	17.07	0.00	27.79
Dividend Payout Ratio (CP) (%)	0.00	11.05	12.70	0.00	20.08
Earning Retention Ratio (%)	0.00	83.95	82.93	0.00	72.21
Cash Earning Retention Ratio (%)	0.00	88.95	87.30	0.00	79.92
Interest Coverage Ratio (X)	44.46	30.96	102.13	138.74	70.14
Interest Coverage Ratio (Post Tax) (X)	24.57	17.13	59.42	82.62	41.67
Enterprise Value (Cr.)	23796.55	18759.10	15095.50	9050.98	3970.53
EV / Net Operating Revenue (X)	5.06	4.03	4.54	3.44	1.53
EV / EBITDA (X)	29.18	25.75	26.19	18.21	8.95
MarketCap / Net Operating Revenue (X)	5.13	4.04	4.56	3.67	1.60
Retention Ratios (%)	0.00	83.94	82.92	0.00	72.20
Price / BV (X)	7.71	6.67	6.41	4.53	2.24
Price / Net Operating Revenue (X)	5.13	4.04	4.56	3.67	1.60
EarningsYield	0.01	0.02	0.02	0.02	0.06

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: 1,836.03

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: 5.46% compared to the current price 1741

Intrinsic Value: 2,040.82

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: 17.22% compared to the current price 1741

Last 5 Year EPS CAGR: 11.15%

*Investments are subject to market risks

Strength and Weakness of Carborundum Universal Ltd

Strength	Weakness
The stock has a high average ROCE of 17.67%, which is a positive sign. The company has higher reserves (1,765.83 cr) compared to borrowings (229.50 cr), indicating strong financial stability. The company has shown consistent growth in sales (2.15 cr) and profit (346.31 cr) over the years.	The stock has a high average Working Capital Days of 92.25, which may not be favorable. 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: 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: 24.70%)
  - 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: 18.50%)
  - 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: 71.6 (Industry average Stock P/E: 76.70)
  - 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: ★★★★☆

FAQ

What is the latest fair value of Carborundum Universal Ltd?

The latest fair value of Carborundum Universal Ltd is ₹1836.03.

What is the Market Cap of Carborundum Universal Ltd?

The Market Cap of Carborundum Universal Ltd is 33,113 Cr..

What is the current Stock Price of Carborundum Universal Ltd as on 27 July 2024?

The current stock price of Carborundum Universal Ltd as on 27 July 2024 is 1,741.

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 1,841/1,026.

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

The Stock P/E of Carborundum Universal Ltd is 71.6.

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 15.6 %.

What is the Face Value of Carborundum Universal Ltd?

The Face Value of Carborundum Universal Ltd is 1.00.