Hold Carborundum Universal; target of Rs 1130: ICICI Securities

ICICI Securities recommended hold rating on Carborundum Universal with a target price of Rs 1130 in its research report dated October 31, 2023.

Broker Research

November 03, 2023 / 14:53 IST

Hold

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities research report on Carborundum Universal

Carborundum Universal (CUMI) witnessed weak revenue growth due to increased Chinese competition in the domestic market and weakness in select overseas markets. Consolidated revenue/EBITDA/PAT grew 2%/3%/14% YoY to INR 11.5bn/1.7bn/1.1bn in Q2FY24. EBITDA margin was flat on a YoY-basis, primarily on account of increased profitability in abrasives and ceramics. We believe the abrasives business will likely continue to grow on the back of industrial recovery – primarily in auto, agro processing, housing demand in tier 2&3 cities, and SME industrial clusters.

Outlook

CUMI is strengthening its retail distribution network and product portfolio to counter rising competition. With Q2’s weak performance, we lower our FY24E/25E earnings by 14%/12%. Retain HOLD; TP revised to INR 1,130 (from INR 1,300).

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