Carborundum Universal Ltd.
NSE: CARBORUNIVCarborundum Universal Ltd.: A 30-second snapshot
Carborundum Universal (CARBORUNIV) trades at ₹1,027.70, sitting 19.6% above its 50-DMA (₹859.57) and 16.9% above its 200-DMA (₹878.96), with RSI at 74.49 after a 27.82% rally in the past 3 months. The stock carries a trailing PE of 80.23 and a debt-to-equity ratio of 7.95, with a 4.8% profit margin and a quality score of 39 out of 100 — ranked 4th of 6 Infrastructure peers. An FY26 results analyst call is scheduled for May 15, 2026.
P/E
80.2
Forward P/E
43.3
ROE
—
Debt / Equity
7.95
Profit Margin
+4.8%
Div. Yield
+0.4%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
43/100
News
3 headlines · 0 positive · 0 negative
Carborundum Universal Schedules Analyst Call for FY26 Results on May 15 - scanx.trade
scanx.trade
Carborundum Universal Receives Stock Exchange Approvals for Promoter Group Reclassification - scanx.trade
scanx.trade
Carborundum Universal Limited Notifies Shareholders of Special Window for Physical Share Transfer and IEPF 100-Day Campaign (Second Phase) - scanx.trade
scanx.trade
Recent context
- ·An analyst call for FY26 full-year results has been scheduled for May 15, 2026, which may provide clarity on margin trajectory, deleveraging progress, and the basis for the elevated forward PE expectations.
- ·Stock exchange approvals were received for a promoter group reclassification (announced April 29, 2026) — a structural governance event that typically precedes or follows changes in promoter ownership classification and may affect float or shareholder structure.
- ·The stock has rallied 27.82% in 3 months to near its 52-week high, while the broader 12-month return is only 1.54%, indicating this is a very recent and concentrated price move whose fundamental catalyst is not yet visible in public filings.
Strengths
- +FCF was positive in 4 of the last 5 available years, indicating the business has generated cash despite thin reported margins.
- +Debt trend is classified as falling, suggesting active deleveraging from the elevated 7.95 D/E base.
- +Forward PE of 43.25 is meaningfully lower than the trailing PE of 80.23, implying consensus expects a significant earnings step-up in the coming period.
- +Price is above both the 50-DMA (₹859.57) and 200-DMA (₹878.96), with a 52-week drawdown of only -0.95% — the stock is near its annual high.
Weaknesses
- −D/E of 7.95 is substantially elevated for an industrial manufacturer; high financial leverage leaves limited buffer if revenue or operating margins compress.
- −Profit margin of 4.8% combined with a quality score of 39 (ranked 4th of 6 peers) reflects below-median fundamental quality within the sector peer set.
- −5-year revenue growth of 2.8% indicates the top line has grown slowly over the medium term, raising questions about whether the reported 5-year earnings growth of 120.3% reflects structural improvement or a recovery from a low base.
- −ROE data is unavailable for this stock, limiting the ability to assess capital efficiency; 0 years above the 15% ROE threshold in the available data window reinforces quality concerns.
Open questions
- ?If the 5-year earnings growth of 120.3% largely reflects margin recovery from a distressed base, what is the normalised earnings power at the current revenue run-rate, and does the trailing PE of 80.23 reflect that normalised level?
- ?With D/E at 7.95 and a falling debt trend, at what pace is the company deleveraging, and what are the debt covenants or refinancing obligations over the next 2-3 years?
- ?What triggered the 27.82% price move in the past 3 months, and does the FY26 results call on May 15 represent a catalyst that the market has already priced in?
- ?Does the promoter group reclassification approval signal a change in control dynamics or ownership intent, and how might that affect minority shareholder alignment?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CARBORUNIV | Carborundum Universal Ltd.You're viewing | 80.2 | — | 39 |
| Industry avg | across 5 peers | 69.9 | +17.5% | 40 |
| BEL | Bharat Electronics Ltd. | 52.8 | — | 57 |
| ABB | ABB India Ltd. | 86.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 111.6 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.7 | +15.5% | 26 |
| CUMMINSIND | Cummins India Ltd. | 64.7 | — | 24 |
Technical state
Current price
₹1,027.70
SMA 50
₹859.57
SMA 200
₹878.96
RSI (14)
74.5 (overbought)
From 52w high
-0.9%
1Y return
+1.5%
3M return
+27.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highDebt-to-equity ratio of 7.95 is substantially above typical industrial sector norms; while debt trend is reported as falling, this leverage level amplifies downside risk if revenue or margins deteriorate.
- mediumProfit margin of 4.8% is thin for an abrasives and industrial materials manufacturer; quality score of 39 ranks 4th of 6 peers in the Infrastructure sector, with consistency score of 34 out of 100.
- mediumROE data is unavailable across the analysis window (0 years above 15% threshold); the 5-year revenue growth of 2.8% contrasts sharply with reported 5-year earnings growth of 120.3%, suggesting the earnings improvement may reflect base effects or one-time margin recovery rather than sustained top-line compounding.
- mediumRSI of 74.49 is in overbought territory; price is up 27.82% over 3 months yet only 1.54% over 12 months, indicating the bulk of the annual return was compressed into a short recent window. The stock is trading near its 52-week high (drawdown of -0.95%).
- lowNews coverage is sparse at 3 articles total, all neutral; sentiment data is insufficient to characterise the broader news environment reliably.
Cross-section contradictions
- 5-year earnings growth of 120.3% alongside 5-year revenue growth of only 2.8% implies the earnings recovery is margin-driven rather than top-line compounding — the durability of margin gains at a 7.95 D/E ratio warrants scrutiny.
- RSI of 74.49 and a 3-month price gain of 27.82% coexist with a 1-year gain of only 1.54%, indicating the stock was essentially flat for most of the past year before a sharp recent move — the trigger for this re-rating is not evident from available news.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days