Carborundum Universal (NSEI:CARBORUNIV) - Share price, News & Analysis

CARBORUNIV fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

CARBORUNIV Stock Overview

Carborundum Universal Limited, together with its subsidiaries, engages in the manufacture and sale of abrasives, ceramics, and electro minerals in India and internationally.

Rewards

Earnings are forecast to grow 16.02% per year

Earnings have grown 13% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Dividend of 0.6% is not well covered by earnings

Carborundum Universal Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Carborundum Universal
Historical stock prices
Current Share Price	₹669.60
52 Week High	₹1,035.00
52 Week Low	₹580.05
Beta	0.89
1 Month Change	-6.10%
3 Month Change	-12.01%
1 Year Change	14.68%
3 Year Change	87.38%
5 Year Change	107.89%
Change since IPO	1,563.60%

Recent News & Updates

Jun 24

Carborundum Universal's (NSE:CARBORUNIV) Shareholders Will Receive A Bigger Dividend Than Last Year

The board of Carborundum Universal Limited ( NSE:CARBORUNIV ) has announced that it will be increasing its dividend on...

Jun 08

These 4 Measures Indicate That Carborundum Universal (NSE:CARBORUNIV) Is Using Debt Reasonably Well

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

May 24

Carborundum Universal (NSE:CARBORUNIV) Is Paying Out A Larger Dividend Than Last Year

Carborundum Universal Limited ( NSE:CARBORUNIV ) will increase its dividend on the 25th of August to ₹2.00. This takes...

Apr 29

I Ran A Stock Scan For Earnings Growth And Carborundum Universal (NSE:CARBORUNIV) Passed With Ease

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	CARBORUNIV	IN Chemicals	IN Market
7D	-4.0%	-0.4%	0.1%
1Y	14.7%	-2.6%	-1.7%

Return vs Industry: CARBORUNIV exceeded the Indian Chemicals industry which returned -3.8% over the past year.

Return vs Market: CARBORUNIV exceeded the Indian Market which returned -2.5% over the past year.

Price Volatility

Is CARBORUNIV's price volatile compared to industry and market?
CARBORUNIV volatility
CARBORUNIV Average Weekly Movement	3.7%
Chemicals Industry Average Movement	6.8%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: CARBORUNIV is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CARBORUNIV's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1954	2,157	N. Ananthaseshan	https://www.cumi-murugappa.com

Carborundum Universal Limited, together with its subsidiaries, engages in the manufacture and sale of abrasives, ceramics, and electro minerals in India and internationally. The company operates through three segments: Surface Engineering, Technical Ceramics and Super Refractory Solutions, and Electrominerals. It offers bonded and coated abrasives, processed cloth products, polymers, power tools, and coolants; and electro minerals, including fused alumina, silicon carbide, fused zirconia, aluminum zirconia, pearl zirconia, and zircon mullite.

Carborundum Universal Fundamentals Summary

How do Carborundum Universal's earnings and revenue compare to its market cap?
CARBORUNIV fundamental statistics
Market Cap	₹127.22b
Earnings (TTM)	₹3.33b
Revenue (TTM)	₹33.25b

38.2x

P/E Ratio

3.8x

P/S Ratio

Is CARBORUNIV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CARBORUNIV income statement (TTM)
Revenue	₹33.25b
Cost of Revenue	₹15.61b
Gross Profit	₹17.64b
Other Expenses	₹14.30b
Earnings	₹3.33b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	17.56
Gross Margin	53.05%
Net Profit Margin	10.03%
Debt/Equity Ratio	8.7%

How did CARBORUNIV perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

20%

Payout Ratio

Does CARBORUNIV pay a reliable dividends?

See CARBORUNIV dividend history and benchmarks

When do you need to buy CARBORUNIV by to receive an upcoming dividend?
Carborundum Universal dividend dates
Ex Dividend Date	Jul 21 2022
Dividend Pay Date	Aug 25 2022
Days until Ex dividend	27 days
Days until Dividend pay date	62 days

Does CARBORUNIV pay a reliable dividends?

See CARBORUNIV dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is CARBORUNIV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CARBORUNIV?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CARBORUNIV. This is calculated by dividing CARBORUNIV's market cap by their current preferred multiple.
What is CARBORUNIV's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹127.22b

CARBORUNIV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.8x
Enterprise Value/EBITDA	23.7x
PEG Ratio	2.4x

Price to Earnings Ratio vs Peers

How does CARBORUNIV's PE Ratio compare to its peers?

CARBORUNIV PE Ratio vs Peers

The above table shows the PE ratio for CARBORUNIV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	23.4x

Forward PE

Price-To-Earnings vs Peers: CARBORUNIV is expensive based on its Price-To-Earnings Ratio (38.2x) compared to the peer average (23.4x).

Price to Earnings Ratio vs Industry

How does CARBORUNIV's PE Ratio compare vs other companies in the Indian Chemicals Industry?

Price-To-Earnings vs Industry: CARBORUNIV is expensive based on its Price-To-Earnings Ratio (38.2x) compared to the Indian Chemicals industry average (16.2x)

Price to Earnings Ratio vs Fair Ratio

What is CARBORUNIV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CARBORUNIV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	38.2x
Fair PE Ratio	22x

Price-To-Earnings vs Fair Ratio: CARBORUNIV is expensive based on its Price-To-Earnings Ratio (38.2x) compared to the estimated Fair Price-To-Earnings Ratio (22x).

Share Price vs Fair Value

What is the Fair Price of CARBORUNIV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CARBORUNIV (₹669.6) is trading above our estimate of fair value (₹392.11)

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

Price to Earnings Growth Ratio

PEG Ratio: CARBORUNIV is poor value based on its PEG Ratio (2.4x)

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Future Growth

How is Carborundum Universal forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CARBORUNIV's forecast earnings growth (16% per year) is above the savings rate (6.7%).

Earnings vs Market: CARBORUNIV's earnings (16% per year) are forecast to grow slower than the Indian market (17.5% per year).

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

Revenue vs Market: CARBORUNIV's revenue (14.4% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: CARBORUNIV's revenue (14.4% 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 (17.5%).

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Past Performance

How has Carborundum Universal performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

13.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CARBORUNIV has a high level of non-cash earnings.

Growing Profit Margin: CARBORUNIV's current net profit margins (10%) are lower than last year (10.8%).

Past Earnings Growth Analysis

Earnings Trend: CARBORUNIV's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: CARBORUNIV's earnings growth over the past year (17.2%) exceeds its 5-year average (13% per year).

Earnings vs Industry: CARBORUNIV earnings growth over the past year (17.2%) underperformed the Chemicals industry 29.6%.

Return on Equity

High ROE: CARBORUNIV's Return on Equity (14.3%) is considered low.

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Financial Health

How is Carborundum Universal's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CARBORUNIV's short term assets (₹16.5B) exceed its short term liabilities (₹7.7B).

Long Term Liabilities: CARBORUNIV's short term assets (₹16.5B) exceed its long term liabilities (₹1.0B).

Debt to Equity History and Analysis

Debt Level: CARBORUNIV has more cash than its total debt.

Reducing Debt: CARBORUNIV's debt to equity ratio has reduced from 10.6% to 8.7% over the past 5 years.

Debt Coverage: CARBORUNIV's debt is well covered by operating cash flow (115.2%).

Interest Coverage: CARBORUNIV's interest payments on its debt are well covered by EBIT (74.8x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.60%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: CARBORUNIV's dividend (0.6%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: CARBORUNIV's dividend (0.6%) is low compared to the top 25% of dividend payers in the Indian market (1.92%).

Stability and Growth of Payments

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.9%), CARBORUNIV's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: CARBORUNIV is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure

CEO

N. Ananthaseshan (59 yo)

2.58yrs

Tenure

₹15,660,000

Compensation

Mr. N. Ananthaseshan has been Managing Director (Designate) of Carborundum Universal Limited since November 23, 2019. Mr. Ananthaseshan served as President of Abrasives at Carborundum Universal Ltd. He ser...

CEO Compensation Analysis

Compensation vs Market: N.'s total compensation ($USD200.19K) is below average for companies of similar size in the Indian market ($USD461.75K).

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

Leadership Team

Experienced Management: CARBORUNIV's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: CARBORUNIV's board of directors are considered experienced (5.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/23 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31