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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:
With Carborundum Universal Limited's revenues forecasted to be lower than last year's, investors are expected to be cautious. A decline in revenue typically harms the company's bottom line, reducing profitability and making investors less confident about the company's ability to sustain its financial health.
Financial Ratios:
| currentRatio | 2.66800 |
|---|---|
| forwardPE | 38.28672 |
| debtToEquity | 10.29200 |
| earningsGrowth | 0.00000 |
| revenueGrowth | 0.14900 |
| grossMargins | 0.50992 |
| operatingMargins | 0.05695 |
| trailingEps | 10.29000 |
| forwardEps | 29.73616 |
A current ratio of 2.668 for CARBORUNIV implies that the company has ample liquidity to meet its short-term debts. CARBORUNIV's cash reserves and current assets should easily cover these obligations, highlighting its financial stability and ability to manage short-term liabilities.
Carborundum Universal Limited's low Debt-to-Equity ratio indicates the company is not over-leveraged. By limiting its dependence on debt, Carborundum Universal Limited reduces its financial risk and demonstrates a strong capital structure, making it a more stable investment option for those wary of excessive borrowing.
Carborundum Universal Limited'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:
CARBORUNIV's stock price has moved above the upper limit of expected values, reflecting significant upward momentum. However, the limited potential for further rises indicates that the stock may face challenges in sustaining its current price.
Recommendation changes over time:
Analysts have shown a sell bias toward Carborundum Universal Limited, signaling potential caution for investors. However, it's recommended to base investment decisions on a wider range of market indicators to get a fuller understanding of the stock's trajectory, avoiding overreliance on a single sentiment.
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