Anand Rathi is bullish on Carborundum Universal has recommended buy rating on the stock with a target price of Rs 303 in its research report dated July 30, 2020.
Anand Rathi 's research report on Carborundum Universal
The steep, 45% y/y, drop in Carborundum’s(standalone) sales reflects already weak industrial activity, further aggravated by the nation-wide lockdown. The better performance of international subsidiaries, though, led to consolidated sales falling less(-33% y/y),as we expected. The ~10%EBITDA margin wasaffected by lower volumes, an adverse product mix and a `75m forex loss. With gradually improving utilisation, management is confident of steady margin, supported by operating efficiency, cost controls, product launches in ceramics and cutting out the loss-suffering Foskor Zirconia this year.
We maintain a Buy, with an unchanged target price (`303, 22x FY22e).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.