Sharekhan's research report on Carborundum Universal
Results lagged estimates due to a weak show by abrasives segment, while ceramics outshone on sales growth and profit fronts. We expect growth momentum to sustain as ceramics and electro-minerals are performing well led by value-added products. Profitability is likely to improve driven by improvement in subsidiaries and performance of new acquisitions. Emerging opportunities w.r.t. clean energy and demand from automotive and construction sectors are key long-term growth drivers.
Outlook
Stock trades at ~34xFY25E EPS. We retain a Buy with an unchanged PT of Rs. 1,315, building in a ~16%/~30% CAGR over FY23-FY25E.
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