Carborundum Universal Stocks: Buy Carborundum Universal; Target price Rs 1048: ICICI Securities | Techno Glob


Call bought on Carborundum Universal with a target price of Rs 1048. The current market price is Rs 841.95.




Incorporated in 1954, the Mid Cap company has a market capitalization (Rs. 15993.54 crore) operating in the industrial raw materials sector.

Carborundum Universal Ltd. Its main product/revenue segments include electricity, minerals; selling services; fragments, service income; export incentives; Includes other operating taxes for the year ending 31-Mar-2022.

Finance

For the quarter ended 30-09-2022, the company reported a total revenue of Rs 1135.81 crore, The total revenue for the last quarter was down by -2.48% from Rs.1164.70 crore and up 33.10% from the total revenue of Rs.853.38 crore in the same quarter last year. . The company reported a net profit after tax of Rs 84.11 crore in the last quarter.

Investment Rationale
Geographical expansions and high-value customized solutions are likely to drive growth in both abrasives and ceramics. Recent acquisitions are expected to strengthen the core portfolio and expand the user industry base. Strong domestic demand and China+1 policy augurs well for the company’s EMD business internationally. Buy the stock as long-term believers continue amid industrial recovery and cost pressures.


Promoter/FII Holdings
Promoters hold 41.92 per cent stake in the company as of June 30-2022, while FIIs hold 11.73 per cent; DIIs own 24.86 percent.

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