Carborundum Universal Limited (CARBORUNIV) AI Stock Analysis

• Market Cap: ₹145.31B
• Dividend Yield: 0.47%
• Average Volume (3M): 6.97K
• Price to Earnings (P/E): 53.7
• Beta (1Y): 0.92
• Revenue Growth: 4.51%
• EPS Growth: -57.87%
• Country: IN
• Employees: 2,238
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Conglomerates
• EPS (TTM): 4.10
• Shares Outstanding: 190,464,570
• 10 Day Avg. Volume: 5,617
• 30 Day Avg. Volume: 6,966
• PEG Ratio: -1.79
• Price to Book (P/B): 5.32
• Price to Sales (P/S): 3.84
• P/FCF Ratio: 622.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 16.68
• Revenue Forecast (FY): ₹51.54B

• Rating: 65 Neutral
• Price Target: ₹820.00 ▼(-4.53% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Carborundum Universal Limited's overall stock score is driven primarily by its strong financial performance, characterized by robust profitability and a solid balance sheet. However, the technical analysis indicates bearish trends, and the high P/E ratio suggests potential overvaluation. The absence of earnings call data and notable corporate events limits additional insights.

Positive Factors

Strong Balance Sheet

Conservative leverage and a high equity ratio provide durable financial flexibility. This enables funding capex, sustaining operations through cycles, supporting selective M&A or capex, and preserving credit metrics — underpinning multi‑quarter resilience.

High Margins

Consistently high gross and net margins point to structural cost advantages or pricing power in specialty abrasives, ceramics and electro‑minerals. Margin strength supports reinvestment, R&D for specialty products, and cushions results during cyclical slowdowns.

Solid Operating Cash Flow

Reliable operating cash generation and strong cash conversion provide a stable funding source for working capital and routine capex. This lowers reliance on external financing and supports medium‑term investment and operational continuity despite FCF variability.

Negative Factors

Slowing Revenue & EPS hit

Near‑flat top‑line growth (~3%) and a large EPS contraction indicate pressure on earnings quality or structural margin headwinds. Slower revenue expansion constrains scale benefits and increases dependence on margin recovery to restore earnings momentum over coming quarters.

Volatile Free Cash Flow

Volatility and a recent decline in free cash flow reduce predictability of internally available funds for capex, deleveraging, or shareholder returns. Persistent FCF swings would limit strategic optionality and heighten refinancing or liquidity risk during downturns.

Cyclical End‑Market Exposure

Heavy exposure to industrial and automotive end markets ties demand and pricing to macro cycles. Structural cyclicality increases revenue and margin volatility, complicating capacity planning and making multi‑quarter cash flow and utilization outcomes less predictable.

Carborundum Universal Limited Business Overview & Revenue Model

Company Description

Carborundum Universal Limited, together with its subsidiaries, manufactures and sells 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. The company also provides industrial ceramics, anti-corrosion products, and bio ceramics, which harness the heat resistance/containment, wear resistance, and insulation properties of ceramics, as well as corrosion resistance properties of various materials. In addition, it manufactures super refractories; operates gas-based power generation facility; and provides IT infrastructure facility management, software application development, remote infrastructure management, and IT security management services. The company was incorporated in 1954 and is based in Chennai, India.

How the Company Makes Money

CUMI primarily makes money by selling manufactured industrial materials and components across its main business divisions: (1) Abrasives—revenue is generated from the sale of coated abrasives (e.g., abrasive sheets, belts, discs) and bonded abrasives (e.g., grinding and cutting wheels) used by industrial customers and trades; sales typically flow through direct key-account supply to manufacturers and through distributor/dealer channels for broader market coverage. (2) Ceramics—revenue comes from engineered/industrial ceramics, refractories, and related products supplied for high-wear, high-temperature, and process applications; earnings in this segment are driven by product mix (standard vs. engineered-to-order parts), customer qualification cycles, and repeat demand tied to industrial operating and maintenance needs. (3) Electro-minerals—revenue is earned from producing and selling mineral-based inputs (such as fused alumina and other electro-fused products) that are used internally for abrasives and also sold to external customers; this segment’s performance is influenced by volumes, pricing, and energy/raw-material cost dynamics. Across segments, the company’s revenue model is largely product-sales driven, supported by technical application support and customer-specific specifications; profitability depends on manufacturing efficiency, input costs, capacity utilization, and the balance between domestic and export markets. Specific details on material partnerships or named major customer contracts are null.

Carborundum Universal Limited Financial Statement Overview

Summary

Carborundum Universal Limited demonstrates robust financial health with strong profitability and a solid balance sheet. The company has high gross and net profit margins, a low debt-to-equity ratio, and a high equity ratio. However, there is some volatility in free cash flow, which slightly tempers the overall financial performance score.

Income Statement

Carborundum Universal Limited exhibits strong performance with high gross and net profit margins. The gross profit margin remains robust, indicating effective cost management. Despite a slight decline in EBIT and EBITDA margins, the company sustains healthy profitability. Revenue growth is steady, showing consistent expansion over the years, although the growth rate has slowed recently.

Balance Sheet

The company's balance sheet is solid, with a low debt-to-equity ratio highlighting conservative leverage. The equity ratio is high, reflecting strong financial stability. Return on Equity (ROE) remains competitive, showcasing efficient use of shareholder funds. The company's strong equity position underpins its financial resilience.

Cash Flow

Carborundum Universal's cash flow performance shows mixed results. While operating cash flow is consistent, free cash flow growth has been volatile, and the most recent year shows a decline. The company maintains a healthy operating cash flow to net income ratio, indicating good cash conversion efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	49.90B	48.94B	47.02B	46.54B	33.25B	26.32B
Gross Profit	26.02B	29.16B	28.39B	27.80B	20.56B	16.40B
EBITDA	5.96B	6.97B	7.24B	6.42B	5.33B	4.65B
Net Income	2.00B	2.93B	4.61B	4.14B	3.33B	2.84B
Balance Sheet
Total Assets	50.30B	46.43B	41.52B	39.24B	33.23B	26.89B
Cash, Cash Equivalents and Short-Term Investments	4.77B	3.78B	5.56B	3.98B	3.50B	6.87B
Total Debt	3.08B	2.16B	1.22B	2.77B	2.40B	617.22M
Total Liabilities	11.55B	9.67B	8.87B	9.76B	8.73B	5.11B
Stockholders Equity	37.45B	35.29B	31.26B	28.21B	23.64B	21.31B
Cash Flow
Free Cash Flow	-488.00M	301.80M	3.82B	1.28B	-3.17B	3.44B
Operating Cash Flow	1.11B	3.04B	6.02B	4.30B	2.45B	4.51B
Investing Cash Flow	-1.34B	-3.83B	-1.86B	-2.57B	-4.60B	-2.69B
Financing Cash Flow	827.30M	-1.10B	-2.14B	-1.33B	894.25M	-661.87M

Carborundum Universal Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 858.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CARBORUNIV, the sentiment is Negative. The current price of 858.9 is above the 20-day moving average (MA) of 798.46, above the 50-day MA of 805.87, and below the 200-day MA of 888.56, indicating a bearish trend. The MACD of -17.48 indicates Positive momentum. The RSI at 39.79 is Neutral, neither overbought nor oversold. The STOCH value of 28.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CARBORUNIV.

Carborundum Universal Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NAVA	74 Outperform	₹156.47B	18.08	―	2.09%	1.03%	-17.68%
3MINDIA	69 Neutral	₹362.91B	-159.35	―	0.46%	11.58%	-7.49%
CARBORUNIV	65 Neutral	₹145.31B	53.68	―	0.47%	4.51%	-57.87%
JSWHL	65 Neutral	₹168.49B	175.19	―	―	―	―
MSTCLTD	64 Neutral	₹29.35B	17.92	―	9.28%	-48.50%	92.06%
BEML	62 Neutral	₹126.09B	-173.04	―	0.29%	-1.31%	3.61%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Carborundum Universal Limited Corporate Events

Carborundum Universal Publishes Postal Ballot Notice in Newspapers

Carborundum Universal Limited has announced that it has dispatched a postal ballot notice to shareholders via electronic means and has published the related public notice in English and Tamil newspapers in compliance with the Companies Act, 2013. The communication to stock exchanges underscores the company’s adherence to statutory disclosure norms and signals continued use of postal ballot as a mechanism for obtaining shareholder approval on corporate matters, reinforcing transparency and governance for its investors.

The notice publication, carried in Business Standard and Makkal Kural, ensures wider shareholder awareness of the ongoing postal ballot process and the modalities for participation. By formally recording this step with both major Indian stock exchanges, the company provides clarity to market participants on its shareholder engagement process, which may support investor confidence in the company’s corporate governance framework.

Carborundum Universal Allots Shares Under ESOP, Expands Equity Base

Carborundum Universal Limited has allotted 27,936 new equity shares of Re.1 each following the exercise of employee stock options granted under its ESOP Plan 2016. This employee-focused issuance modestly increases the company’s outstanding equity shares to 19,04,92,502 and its paid-up equity share capital to Rs. 19,04,92,502, slightly diluting existing holdings while reinforcing its stock-based compensation framework.

The allotment under the ESOP scheme reflects the company’s continued reliance on equity-linked incentives to retain and reward key personnel, aligning employee interests more closely with shareholder value. Although the incremental change in capital structure is small, such issuances signal an ongoing commitment to performance-based incentives and may support long-term talent retention in a competitive industrial materials market.

Carborundum Universal Inducts Former Diplomat Venkatesh Varma as Independent Director

Carborundum Universal Limited has appointed Ambassador D B Venkatesh Varma as an Additional Director in the capacity of Independent Director for a five-year term starting 4 March 2026. His appointment, cleared by the Nomination and Remuneration Committee and subject to shareholder approval, follows confirmation that he is not debarred from capital markets or directorship roles.

Varma, a former Indian Foreign Service officer and ex-ambassador to the Russian Federation, Spain, and the Conference on Disarmament, brings extensive experience in security, defence, and strategic technology domains, including nuclear, missile, and space programs. His induction is likely to strengthen the company’s governance and strategic oversight, particularly in areas intersecting advanced materials, geopolitics, and national security-linked industries.

Carborundum Universal Seeks Reclassification of Promoter Group Entity as Public Shareholder

Carborundum Universal Limited has applied to both the National Stock Exchange of India and BSE for the reclassification of Algavista Greentech Private Limited from the promoter group category to the public shareholder category under Regulation 31A of the SEBI Listing Regulations. This move reflects a change in the company’s shareholding structure and promoter group composition, which may alter governance dynamics and the distribution of influence among shareholders, though no operational changes have been indicated at this stage.

Carborundum Universal Clears Q3 FY26 Results, Declares Interim Dividend and Approves Promoter Group Reclassification

Carborundum Universal Limited’s board has approved the unaudited standalone and consolidated financial results for the quarter and period ended 31 December 2025, which will be published in summary form in English and Tamil newspapers and made available on the company and stock exchange websites in accordance with SEBI disclosure norms. The board also declared an interim dividend of 150%, or Rs 1.50 per equity share of face value Re 1, for the financial year ending 31 March 2026, with a record date of 4 February 2026 and mandated that all dividend payments be made only through electronic modes, underscoring a shift toward fully digital payouts and requiring shareholders to update KYC and bank mandates. In addition, the board approved the request of Algavista Greentech Private Limited to be reclassified from the promoter group to the public shareholder category, subject to stock exchange no-objection, a move that could marginally alter the company’s shareholding structure and promoter group composition while aligning with SEBI’s reclassification framework.