Dec'24 View on Carborundum Universal Ltd

Carborundum Universal Ltd, a part of the Chennai-based Murugappa group, is engaged in the manufacturing of abrasives, ceramics, refractories, and electro-minerals. The stock after touching a high of 1,800 had fallen to it's recent low of 1,300 due to weak qurterly results and looks to rebound due to good quarter expectations and following views. * CUMI will continue investments in existing entities and business adjacencies and evaluate inorganic growth prospects to acquire capabilities. * CUMI scaling up thin wheel capacities would help curb Chinese imports over time. * Increase our PAT estimates by 1%/3% for FY26/27. * CUMI has good positioning in the Sic Powder market for semiconductor applications in terms cost, purity, brittleness and packaging density. • CUMI is focusing on growing investment quotient selectively across geographies. • CUMI expects to end FY25 debt free and with ~US$40 cr of net worth.