Carborundum Universal Limited (CARBORUNIV) AI Stock Analysis

• Market Cap: ₹152.98B
• Dividend Yield: 0.47%
• Average Volume (3M): 6.97K
• Price to Earnings (P/E): 76.4
• Beta (1Y): 0.91
• Revenue Growth: 4.51%
• EPS Growth: -57.87%
• Country: IN
• Employees: 2,238
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Conglomerates
• EPS (TTM): 3.90
• Shares Outstanding: 190,447,860
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹969.00 ▲(12.82% Upside)

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

Business Model Strength

The company's diversified revenue model across multiple product segments and industries enhances its resilience and market adaptability.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability, enabling strategic investments and weathering economic downturns.

Profitability

High profitability margins indicate effective cost management and competitive pricing power, supporting long-term financial health.

Negative Factors

Revenue Growth Slowdown

A slowdown in revenue growth could signal challenges in market expansion or increased competition, potentially impacting future earnings.

Volatile Free Cash Flow

Volatility in free cash flow can affect the company's ability to fund operations and investments, posing risks to financial flexibility.

Earnings Decline

A significant decline in EPS growth may reflect operational challenges or increased costs, impacting investor confidence and valuation.

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

Carborundum Universal Limited generates revenue primarily through the sale of its core products, which include abrasives, ceramics, and electro minerals. The company has a diversified revenue model with key revenue streams coming from its various product segments, including grinding tools, coated abrasives, and specialty ceramics. Additionally, CARBORUNIV benefits from significant partnerships with various industrial sectors, allowing it to tap into multiple markets and enhance its distribution network. The company also engages in export activities, which contribute to its global presence and revenue growth. Continuous investment in research and development further aids in the introduction of innovative products, thereby driving sales and increasing market share.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	49.16B	48.94B	47.02B	46.54B	33.25B	26.32B
Gross Profit	28.99B	29.16B	28.39B	27.80B	20.56B	16.40B
EBITDA	6.17B	6.97B	7.24B	6.42B	5.33B	4.65B
Net Income	2.42B	2.93B	4.61B	4.14B	3.33B	2.84B
Balance Sheet
Total Assets	0.00	46.43B	41.52B	39.24B	33.23B	26.89B
Cash, Cash Equivalents and Short-Term Investments	3.79B	3.78B	5.56B	3.98B	3.50B	6.87B
Total Debt	0.00	2.16B	1.22B	2.77B	2.40B	617.22M
Total Liabilities	-36.76B	9.67B	8.87B	9.76B	8.73B	5.11B
Stockholders Equity	36.76B	35.29B	31.26B	28.21B	23.64B	21.31B
Cash Flow
Free Cash Flow	0.00	301.80M	3.82B	1.28B	-3.17B	3.44B
Operating Cash Flow	0.00	3.04B	6.02B	4.30B	2.45B	4.51B
Investing Cash Flow	0.00	-3.83B	-1.86B	-2.57B	-4.60B	-2.69B
Financing Cash Flow	0.00	-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: Positive

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 847.21, below the 50-day MA of 863.79, and below the 200-day MA of 934.86, indicating a bearish trend. The MACD of -12.13 indicates Positive momentum. The RSI at 32.30 is Neutral, neither overbought nor oversold. The STOCH value of 4.06 is Positive, 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	₹164.74B	17.98	―	2.09%	1.03%	-17.68%
3MINDIA	69 Neutral	₹384.21B	69.33	―	0.46%	11.58%	-7.49%
CARBORUNIV	65 Neutral	₹152.98B	76.35	―	0.47%	4.51%	-57.87%
JSWHL	65 Neutral	₹207.70B	166.67	―	―	―	―
MSTCLTD	64 Neutral	₹34.02B	8.17	―	9.28%	-48.50%	92.06%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BEML	61 Neutral	₹149.20B	50.43	―	0.29%	-1.31%	3.61%

Carborundum Universal Limited Corporate Events

Carborundum Universal Expands Equity through ESOP Allotment

Carborundum Universal Limited has announced the allotment of 6,876 equity shares at Re.1 each under its ESOP Plan 2016, following the exercise of stock options by grantees. This allotment increases the total number of outstanding equity shares to 19,04,47,864, reflecting the company’s ongoing commitment to employee engagement and shareholder value enhancement.

Carborundum Universal Ltd Gains Approval for Promoter Group Reclassification

Carborundum Universal Limited has received no-objection approvals from the National Stock Exchange of India and BSE Limited for the reclassification of Coromandel Engineering Company Limited and Yanmar Coromandel Agrisolutions Private Limited from its promoter group. This reclassification aligns with the requests made by these entities and reflects a strategic shift in the company’s stakeholder composition, potentially impacting its governance and market perception.

Carborundum Universal Expands Equity Through ESOP Allotment

Carborundum Universal Limited has announced the allotment of 3,000 equity shares under its Employee Stock Option Plan (ESOP) 2016. This allotment increases the total number of outstanding equity shares to 19,04,40,988, reflecting a minor expansion in the company’s equity base, which may have implications for shareholder value and employee engagement.