NSEI:CARBORUNIV

Stock Analysis Report

Executive Summary

Carborundum Universal Limited, together with its subsidiaries, manufactures and sells abrasives, ceramics, and electro minerals in India and internationally.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Carborundum Universal's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.2%

CARBORUNIV

2.5%

IN Machinery

2.4%

IN Market


1 Year Return

-17.5%

CARBORUNIV

-7.9%

IN Machinery

8.0%

IN Market

Return vs Industry: CARBORUNIV underperformed the Indian Machinery industry which returned -7.9% over the past year.

Return vs Market: CARBORUNIV underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

CARBORUNIVIndustryMarket
7 Day5.2%2.5%2.4%
30 Day-2.7%1.5%2.5%
90 Day-11.4%-0.3%3.6%
1 Year-16.9%-17.5%-6.3%-7.9%10.3%8.0%
3 Year8.2%6.0%-1.3%-5.1%22.3%16.0%
5 Year61.5%55.7%39.4%31.5%42.8%29.3%

Price Volatility Vs. Market

How volatile is Carborundum Universal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Carborundum Universal undervalued compared to its fair value and its price relative to the market?

23.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CARBORUNIV (₹300.9) is trading above our estimate of fair value (₹126.57)

Significantly Below Fair Value: CARBORUNIV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CARBORUNIV is poor value based on its PE Ratio (24x) compared to the Machinery industry average (12.5x).

PE vs Market: CARBORUNIV is poor value based on its PE Ratio (24x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CARBORUNIV is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CARBORUNIV is overvalued based on its PB Ratio (3.3x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is Carborundum Universal forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CARBORUNIV's forecast earnings growth (17.6% per year) is above the savings rate (7.6%).

Earnings vs Market: CARBORUNIV's earnings (17.6% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: CARBORUNIV's earnings are forecast to grow, but not significantly.

Revenue vs Market: CARBORUNIV's revenue (11.4% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: CARBORUNIV's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CARBORUNIV's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Carborundum Universal performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CARBORUNIV's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: CARBORUNIV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CARBORUNIV had negative earnings growth (-0.3%) over the past year, making it difficult to compare to the Machinery industry average (13.2%).


Return on Equity

High ROE: CARBORUNIV's Return on Equity (13.2%) is considered low.


Return on Assets

ROA vs Industry: CARBORUNIV has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: CARBORUNIV's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Carborundum Universal's financial position?


Financial Position Analysis

Short Term Liabilities: CARBORUNIV's short term assets (₹13.0B) exceeds its short term liabilities (₹4.1B)

Long Term Liabilities: CARBORUNIV's short term assets (13.0B) exceeds its long term liabilities (502.2M)


Debt to Equity History and Analysis

Debt Level: CARBORUNIV's debt to equity ratio (5.4%) is considered satisfactory

Reducing Debt: CARBORUNIV's debt to equity ratio has reduced from 38.6% to 5.4% over the past 5 years.

Debt Coverage: CARBORUNIV's debt is well covered by operating cash flow (210.8%).

Interest Coverage: CARBORUNIV earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CARBORUNIV has a high level of physical assets or inventory.

Debt Coverage by Assets: CARBORUNIV's debt is covered by short term assets (assets are 13.574370x debt).


Next Steps

Dividend

What is Carborundum Universal's current dividend yield, its reliability and sustainability?

0.91%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.4%industryaverage1.6%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CARBORUNIV's dividend (0.91%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: CARBORUNIV's dividend (0.91%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

Stable Dividend: CARBORUNIV's dividend payments have been volatile in the past 10 years.

Growing Dividend: CARBORUNIV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.9%), CARBORUNIV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Carborundum Universal's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

K. Srinivasan (62yo)

13.7yrs

Tenure

₹23,210,000

Compensation

Mr. K. Srinivasan, B.Tech. (Mech) has been the Managing Director and President of Carborundum Universal Ltd., since February 1, 2006 and February 1, 2005 respectively. Mr. Srinivasan served as the Vice Pre ...


CEO Compensation Analysis

Compensation vs. Market: K.'s total compensation ($USD327.41K) is about average for companies of similar size in the Indian market ($USD370.99K).

Compensation vs Earnings: K.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: CARBORUNIV's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

59yo

Average Age

Experienced Board: CARBORUNIV's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: CARBORUNIV insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹37,207,79204 Oct 19
Lakshmi Venkatachalam
EntityIndividual
Shares124,420
Max Price₹299.05
Sell₹1,216,16130 Sep 19
M. Sivakumaran
EntityIndividual
Shares4,000
Max Price₹304.04
Buy₹1,490,50712 Aug 19
K. Srinivasan
EntityIndividual
Role
Chief Executive Officer
MD, President & Whole Time Director
Shares5,000
Max Price₹298.21
Sell₹10,285,67030 May 19
M. V. Subbiah
EntityIndividual
Shares28,250
Max Price₹364.09
Sell₹3,617,69502 Apr 19
Kalyanaraman Ramesh
EntityIndividual
Shares10,848
Max Price₹381.01
Sell₹75,379,99029 Mar 19
Muthiah Venkatachalam
EntityIndividual
Shares200,000
Max Price₹376.90
Sell₹7,660,66529 Mar 19
Kalyanaraman Ramesh
EntityIndividual
Shares20,000
Max Price₹383.09
Buy₹37,056,80329 Mar 19
Muthiah Venkatachalam
EntityIndividual
Shares98,320
Max Price₹376.90
Buy₹75,379,99029 Mar 19
Lakshmi Venkatachalam
EntityIndividual
Shares200,000
Max Price₹376.90
Sell₹1,489,47915 Mar 19
M. Sivakumaran
EntityIndividual
Shares3,844
Max Price₹387.48
Sell₹2,488,05311 Mar 19
D. Vijayalakshmi
EntityIndividual
Role
Head of Corporate Communications
Senior Associate Vice President of Corporate Communications
Shares6,500
Max Price₹385.00
Sell₹1,104,16006 Mar 19
Shashi Gupta
EntityIndividual
Shares3,000
Max Price₹380.50
Sell₹102,822,47804 Jan 19
Murugappan Murugappan
EntityIndividual
Role
Chairman of the Board
Chairman
Shares289,600
Max Price₹355.05
Sell₹102,822,47804 Jan 19
Meenakshi Murugappan
EntityIndividual
Shares289,600
Max Price₹355.05
Sell₹71,009,99904 Jan 19
Lakshmi Venkatachalam
EntityIndividual
Shares200,000
Max Price₹355.05
Buy₹71,009,99904 Jan 19
M. Subramanian
EntityIndividual
Shares200,000
Max Price₹355.05
Sell₹71,009,99904 Jan 19
Muthiah Venkatachalam
EntityIndividual
Shares200,000
Max Price₹355.05
Buy₹173,832,47604 Jan 19
M. Muthiah
EntityIndividual
Shares489,600
Max Price₹355.05
Buy₹102,822,47804 Jan 19
M. Veerappan
EntityIndividual
Shares289,600
Max Price₹355.05

Ownership Breakdown


Management Team

  • K. Srinivasan (62yo)

    MD, President & Whole Time Director

    • Tenure: 13.7yrs
    • Compensation: ₹23.21m
  • N. Ananthaseshan (57yo)

    Additional Director & President of Abrasives

    • Tenure: 0.5yrs
  • D. Vijayalakshmi (53yo)

    Senior Associate Vice President of Corporate Communications

    • Tenure: 0yrs
  • Shyam Rao (56yo)

    Senior Vice President of Industrial Ceramics Division

    • Tenure: 0yrs
  • P. Padmanabhan

    Senior Associate Vice President of Accounts & Taxation

    • Tenure: 0yrs
  • C. Srikanth (53yo)

    Senior Vice President of Marketing - Abrasives

    • Tenure: 0yrs
  • Jagannathan Narasimhan (46yo)

    Executive VP & CFO

    • Tenure: 1.2yrs
    • Compensation: ₹8.36m
  • P. Jayan (59yo)

    Executive Vice President of Electrominerals

    • Tenure: 3.1yrs
  • T. Janani

    Investor Relationship officer

    • Tenure: 1.3yrs
  • V. Rajendran (49yo)

    Senior Vice President of Refractories & Prodorite

    • Tenure: 1.5yrs

Board Members

  • Murugappan Murugappan (64yo)

    Chairman

    • Tenure: 15.8yrs
    • Compensation: ₹10.21m
  • Sanjay Jayavarthanavelu (51yo)

    Non Executive Independent Director

    • Tenure: 9.8yrs
    • Compensation: ₹1.08m
  • K. Srinivasan (62yo)

    MD, President & Whole Time Director

    • Tenure: 13.7yrs
    • Compensation: ₹23.21m
  • Aroon Raman (59yo)

    Non-Executive Independent Director

    • Tenure: 6yrs
    • Compensation: ₹1.04m
  • N. Ananthaseshan (57yo)

    Additional Director & President of Abrasives

    • Tenure: 0.5yrs
  • M. Arun Arunachalam (52yo)

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: ₹960.00k
  • Soundara Kumar (65yo)

    Additional Independent Woman Director

    • Tenure: 0.2yrs
  • P. Raghavan (63yo)

    Non-Executive Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹930.00k
  • Sujjain Talwar (55yo)

    Non-Executive Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹1.03m

Company Information

Carborundum Universal Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Carborundum Universal Limited
  • Ticker: CARBORUNIV
  • Exchange: NSEI
  • Founded: 1954
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹56.983b
  • Shares outstanding: 189.28m
  • Website: https://www.cumi-murugappa.com

Number of Employees


Location

  • Carborundum Universal Limited
  • Parry House
  • 6th Floor
  • Chennai
  • Tamil Nadu
  • 600001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
513375BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 1996
CARBORUNIVNSEI (National Stock Exchange of India)YesEquity SharesININRApr 1996

Biography

Carborundum Universal Limited, together with its subsidiaries, manufactures and sells abrasives, ceramics, and electro minerals in India and internationally. It operates through three segments: Surface Eng ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:57
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.