Jun 19, 2017 05:34 PM IST | Source: CNBC-TV18

Buy Carborundum Universal on declines: Mayuresh Joshi

Mayuresh Joshi of Angel Broking is of the view that one may buy Carborundum Universal on declines.

Mayuresh Joshi of Angel Broking told CNBC-TV18, "From the large cap names ICICI Bank looks very attractively poised. Earnings growth seems to be a plausible option over the next few quarters. Hindalco Industries from the metals space in the large cap name also becomes a very attractive propositions for all the reasons enumerated earlier."

He further added, "Within the midcap space Carborundum Universal is something that I will continue to prefer. If the stock does correct meaningfully over the next few weeks, investors can look at the stock in a very staggered way. Again I think part of the Murugappa Group and the kind of business that it is into, abrasives and ceramics, the organised share thereof along with Grindwell Norton, I think they assume a majority of the share."

"With the unorganised pie assumed to come to the organised players like Carborundum or Grindwell Norton, I think these players are going to benefit significantly and that will probably get reflected in terms of the operational efficiency because a lot of capex probably has already been undertaken for the company per se."

"The debt equity ratio is at very miniscule levels for this company. As the cash flow improvement happens, I think the same gets reflected both in terms of margin improvement and efficiency as well as the bottomline. So, any declines in a very staggered way Carborundum Universal is something I continue to prefer for long term investors," he said.
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