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Fundamentals for Carborundum Universal Limited
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Fundamentals for Carborundum Universal Limited
Business Operations:
Sector: IndustrialsIndustry: Conglomerates
Carborundum Universal Limited, together with its subsidiaries, manufactures and sells abrasives, ceramics, and electrominerals in India and internationally. It operates through three segments: Surface Engineering; Technical Ceramics and Super Refractory Solutions; and Electrominerals. The company offers bonded and coated abrasives, metal working fluids, power tools, non-woven, and tools for stones; and electro minerals, such as alumina, carbides, zirconia, and grit powders. It also provides industrial ceramics used in chemical, defense, electronics, energy, food, heavy industries, lifestyle, medical, and minerals and metallurgy industries; and manufactures super refractories, including as acid proof cement, polymer concrete, anti-corrosive coatings and screedings, construction chemicals, concrete repair and rehabilitation materials, fibre reinforced plastic chemical process equipment, and pipes and fittings for handling corrosives. In addition, the company provides IT infrastructure facility management, software application development, remote infrastructure management, and IT security management services; and operates gas-based power generation facility. Carborundum Universal Limited was incorporated in 1954 and is based in Chennai, India.
Revenue projections:
Revenues for CARBORUNIV are expected to drop compared to the previous year, which could be a cause for concern for investors. A decline in earnings may negatively impact the company's profitability, leading cautious investors to reconsider their positions, as it often signals challenges in overall financial health.
Financial Ratios:
| currentRatio | 2.66800 |
|---|---|
| forwardPE | 34.98342 |
| debtToEquity | 10.29200 |
| earningsGrowth | 0.00000 |
| revenueGrowth | 0.14900 |
| grossMargins | 0.50992 |
| operatingMargins | 0.05695 |
| trailingEps | 10.31000 |
| forwardEps | 29.24528 |
With a current ratio 2.668, Carborundum Universal Limited demonstrates the ability to service its short-term debt without difficulty. The company's strong cash reserves and current assets ensure that it can meet its liabilities, reflecting financial stability and healthy liquidity.
CARBORUNIV's Debt-to-Equity ratio is low, indicating the company is not over-leveraged. This suggests a prudent approach to financing, with minimal dependence on debt, reducing the financial risk associated with high leverage, and signaling a stable financial outlook.
CARBORUNIV's forward EPS exceeding its trailing EPS reflects expectations of increased profitability for the current year. This suggests that the company is projected to achieve higher earnings than in the previous financial year, signaling positive growth and improved financial health.
Price projections:
The price of Carborundum Universal Limited has surpassed the higher end of projections, showing strong upward momentum. However, with limited space for further increases, the stock may be due for a correction or stabilization in the near term.
Recommendation changes over time:
A recent sell bias for CARBORUNIV from analysts suggests caution for investors. However, decisions should be grounded in a diverse set of market indicators, ensuring that a wider perspective is considered before making any moves regarding the stock's performance and potential risks.
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