Carborundum Universal Ltd logo

Carborundum Universal Ltd

CARBORUNIV NSE

Carborundum Universal Ltd, a part of the Chennai-based Murugappa group, is engaged in the manufacturing of abrasives, ceramics, refractories, and electro-minerals. [1]

AI Verdict: SELL Confidence: 7%

Carborundum Universal trades at a PE of 135.3x with declining profitability (TTM profit growth of -29%) and 71% of analysts recommending a sell. The stock's valuation is disconnected from fundamentals given a last-year ROE of just 7% and weak near-term earnings trajectory.

Key Fundamentals

SmallcapAbrasives & BearingsIndustrial Products
Market Cap
₹22,014 Cr
Volatility
Moderate
P/E Ratio
111.76
EBITDA
₹387 Cr
Return on Equity
14.58%
Debt to Equity
0.06
Book Value
₹204.6
EPS
₹20.19
52W High
₹1,306.9
52W Low
₹735.2

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 22.3%

Weaknesses

1
  • Company has a low return on equity of 10.8% over last 3 years.

Growth Rate

Revenue Growth
4.34% ↘
Net Income Growth
-57.00% ↗
Cash Flow Change
-49.42% ↘
ROE
-44.24% ↗
ROCE
-36.13% ↗
EBITDA Margin (Avg.)
-51.61% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
SELL
Risk high

Carborundum Universal trades at a PE of 135.3x with declining profitability (TTM profit growth of -29%) and 71% of analysts recommending a sell. The stock's valuation is disconnected from fundamentals given a last-year ROE of just 7% and weak near-term earnings trajectory.

Bull Case 8
  • Long-term stock CAGR of 19% over 10 years demonstrates sustained wealth creation for patient investors
  • 10-year compounded sales growth of 10% shows consistent revenue expansion across business cycles
  • 10-year compounded profit growth of 6% indicates the company has historically been able to grow earnings over full cycles
  • 5-year stock CAGR of 16% outperforms many industrial peers, reflecting market confidence in long-term positioning
  • Market cap of Rs 23,930 Cr provides reasonable liquidity and institutional ownership base
  • Consistent dividend payout of 22.3% demonstrates management commitment to shareholder returns
  • 5-year compounded sales growth of 15% indicates strong medium-term revenue momentum from abrasives and ceramics segments
  • 1-year stock return of 32% suggests recent re-rating driven by industrial capex recovery expectations
Bear Case 8
  • PE ratio of 135.3x is extremely elevated for an industrials company with single-digit sales growth of 6% TTM
  • TTM profit growth of -29% signals significant earnings deterioration that does not justify premium valuation
  • 71.43% of analysts (5 out of 7) rate the stock a sell, reflecting broad consensus on overvaluation
  • 3-year compounded profit CAGR of -14% shows sustained earnings decline, not a one-off miss
  • Last year ROE of 7% is well below cost of equity and has declined from 13% over 10-year average
  • Price-to-book of 5.83x is rich given ROE of just 7%, implying negative economic value added
  • Dividend yield of only 0.34% offers negligible income support at current elevated price levels
  • 3-year stock CAGR of just 1% versus 10-year CAGR of 19% indicates the stock has stagnated after running ahead of fundamentals

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 1
  • Renewable energy stake acquired May 27

    Carborundum Universal acquired 29.58% equity in Putrim Renewables for ₹6.48 crores, signaling a move toward clean energy integration.

Neutral 2
  • ₹31.44 Cr institutional block trade Jun 23

    A block trade of ~253,581 shares executed on NSE at ₹1240.00 per share totaling ₹31.44 crores, likely institutional portfolio rebalancing with no price disruption.

  • No promoter share encumbrance Jun 17

    Promoters (199 entities in promoter group) disclosed zero new encumbrances for FY 2025-26 under SEBI SAST regulations, indicating clean promoter holding.

TL;DR: Carborundum Universal shows a quiet period with no material headwinds. The Putrim Renewables stake acquisition hints at strategic diversification into clean energy. Promoter holdings remain unencumbered and institutional activity appears routine. With no negative catalysts in sight, the near-term outlook is stable, though investors should watch for operational updates on the renewables strategy and core abrasives/ceramics business performance.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,200
1,203
1,146
1,151
1,201
1,198
1,224
1,255
1,217
1,219
1,298
1,291
1,398
Expenses
1,009
1,034
979
960
992
1,004
1,029
1,078
1,071
1,098
1,142
1,134
1,254
Operating Profit
190
169
168
191
209
194
195
177
146
121
156
157
144
OPM %
16%
14%
15%
17%
17%
16%
16%
14%
12%
10%
12%
12%
10%
Other Income
59
41
31
25
25
19
23
-77
18
27
23
22
-103
Interest
7
5
5
5
4
3
4
4
3
3
4
5
6
Depreciation
53
46
46
48
51
51
52
53
56
59
62
61
65
PBT
190
160
148
163
180
158
162
43
105
86
113
113
-30
Tax %
22%
26%
30%
31%
21%
27%
28%
13%
71%
30%
34%
35%
34%
Net Profit
149
118
104
112
143
115
116
38
30
60
74
73
-40
EPS in Rs
7.22
5.96
5.36
5.86
7.09
5.94
6.09
1.83
1.53
3.25
3.91
3.99
-0.92
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
2,042
1,944
2,112
2,374
2,689
2,599
2,632
3,325
4,654
4,702
4,894
5,206
Expenses
1,808
1,636
1,777
1,975
2,250
2,199
2,166
2,784
3,999
3,961
4,178
4,627
Operating Profit
234
308
336
400
439
400
466
540
655
741
717
579
OPM %
11%
16%
16%
17%
16%
15%
18%
16%
14%
16%
15%
11%
Other Income
112
39
41
37
46
62
32
56
136
118
-23
-32
Interest
25
23
18
9
8
6
4
6
24
18
14
19
Depreciation
100
87
96
106
108
105
99
115
187
191
212
247
PBT
220
237
262
322
369
351
395
477
580
650
468
282
Tax %
37%
34%
30%
32%
33%
22%
26%
27%
24%
27%
36%
40%
Net Profit
138
155
184
220
248
275
293
350
442
476
299
168
EPS in Rs
7.05
7.65
9.27
11.41
13.09
14.38
15
17.56
21.8
24.24
15.37
10.22
Div. Payout %
18%
20%
19%
20%
21%
19%
20%
20%
16%
16%
26%
24%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
19
19
19
19
19
19
19
19
19
19
19
19
Reserves
1,070
1,173
1,364
1,545
1,705
1,839
2,113
2,345
2,802
3,107
3,510
3,881
Borrowings
340
320
156
129
97
70
62
240
277
172
216
413
Other Liabilities
387
348
374
394
401
354
486
692
774
793
835
978
Total Liabilities
1,816
1,860
1,913
2,088
2,222
2,283
2,679
3,296
3,872
4,091
4,580
5,291
Fixed Assets
793
659
705
736
695
748
777
1,006
1,527
1,555
1,716
1,906
CWIP
43
85
73
30
46
39
28
58
87
84
118
141
Investments
41
131
124
180
227
189
127
138
161
172
201
199
Other Assets
938
985
1,011
1,141
1,254
1,307
1,747
2,094
2,096
2,280
2,544
3,045
Total Assets
1,816
1,860
1,913
2,088
2,222
2,283
2,679
3,296
3,872
4,091
4,580
5,291
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
326
178
295
213
202
407
451
245
430
602
304
367
Investing
-136
-75
-72
-75
-85
-105
-266
-465
-248
-229
-371
-217
Financing
-162
-86
-207
-83
-109
-135
-66
89
-133
-214
-110
119
Net Cash Flow
28
17
16
55
7
168
119
-131
49
159
-177
270
Free Cash Flow
339
96
190
121
107
284
348
-315
130
367
28
60
CFO/OP
169
85
111
81
73
127
119
70
90
109
70
93
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
66
69
66
73
70
56
66
53
49
53
57
62
Inventory Days
198
198
192
199
204
209
187
218
191
183
215
200
Days Payable
87
72
82
90
80
80
123
117
72
73
71
76
Cash Conversion Cycle
177
196
176
182
194
185
130
154
169
163
201
187
Working Capital Days
44
56
74
85
95
88
77
57
70
73
97
75
ROCE %
10%
17%
18%
20%
21%
18%
19%
20%
20%
20%
16%
10%

Shareholding Pattern

As of Mar 2026
Promoters 38.89%
DIIs 29.45%
Public 15.76%
FIIs 10.73%
Others 5.16%
Government 0.01%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
42.01%
42.00%
41.96%
41.96%
41.94%
41.92%
41.90%
41.89%
41.52%
41.50%
41.28%
41.28%
41.23%
41.16%
41.04%
39.82%
39.82%
39.23%
38.96%
38.90%
38.89%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
10.15%
10.63%
11.71%
12.76%
12.71%
13.01%
12.11%
11.81%
10.88%
10.98%
10.73%
DIIs
25.55%
25.51%
24.24%
23.27%
24.12%
24.86%
27.27%
28.19%
28.83%
29.38%
29.74%
29.84%
29.05%
28.25%
28.03%
28.18%
28.86%
29.22%
29.82%
30.02%
29.45%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.02%
0.02%
0.02%
0.02%
0.03%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
Public
16.83%
16.73%
16.30%
16.25%
16.27%
16.24%
14.56%
14.18%
14.12%
14.01%
14.11%
13.73%
13.52%
13.42%
13.71%
14.49%
14.66%
14.68%
15.18%
14.92%
15.76%
Others
15.61%
15.75%
17.49%
18.52%
17.66%
16.98%
16.24%
15.72%
15.51%
15.08%
4.69%
4.51%
4.46%
4.40%
4.50%
4.49%
4.54%
5.05%
5.15%
5.18%
5.16%
No. of Shareholders
39,281
44,305
51,276
59,928
58,662
56,415
56,628
52,780
48,734
57,158
57,101
56,669
52,943
64,342
67,734
69,300
71,711
69,834
69,083
62,427
65,914

Documents

Frequently Asked Questions about Carborundum Universal Ltd

What does Carborundum Universal Ltd do?
Carborundum Universal Ltd, a part of the Chennai-based Murugappa group, is engaged in the manufacturing of abrasives, ceramics, refractories, and electro-minerals. [1]
Where is Carborundum Universal Ltd (CARBORUNIV) listed?
Carborundum Universal Ltd is listed on the Indian stock exchanges. It is listed on NSE: CARBORUNIV and BSE: 513375. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Carborundum Universal Ltd belong to?
Carborundum Universal Ltd operates in the Industrials sector within the Industrial Products industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Carborundum Universal Ltd?
Carborundum Universal Ltd has a market capitalisation of approximately ₹22013.89 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Carborundum Universal Ltd?
The Price-to-Earnings (PE) ratio of Carborundum Universal Ltd is 111.76. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Carborundum Universal Ltd?
Over the past 52 weeks, Carborundum Universal Ltd has traded between a low of ₹735.2 and a high of ₹1,306.9. This range helps investors understand the stock's price volatility and recent trading levels.
Does Carborundum Universal Ltd pay dividends?
Yes, Carborundum Universal Ltd has a dividend yield of 0.34%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Carborundum Universal Ltd?
Carborundum Universal Ltd has a Return on Equity (ROE) of 14.58%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Carborundum Universal Ltd on Tapetide?
On Tapetide, you can view Carborundum Universal Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Carborundum Universal Ltd, a part of the Chennai-based Murugappa group, is engaged in the manufacturing of abrasives, ceramics, refractories, and electro-minerals. [1]

Website cumi.murugappa.com
CEO Mr. Sridharan Rangarajan
Employees 2,380
Listed 1996-04-03
Face Value ₹ 1
Issued Size 19,04,47,864

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