Buy Carborundum Universal; target of Rs 1315: Sharekhan

Sharekhan's research report on Carborundum Universal

Carborundum Universal Limited’s (CUMI) results exceeded our estimates on the profitability front, driven by higher revenue growth and strong margin across segments. The company expects revenue/PAT contribution from subsidiaries to increase meaningfully in the coming years. We expect growth momentum to sustain, and profitability should pick up pace in the coming years, driven by sanguine demand in key sectors and turnaround of new businesses.

Outlook

We retain Buy with a revised PT of Rs. 1,315, valuing the stock on FY2025E EPS, building in a ~21%/36% CAGR over FY2023-FY2025E.

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