Carborundum Uni. (CARBORUNIV)

FairStock Score: 54/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-Graham investor, I start with the gap between ₹1,151.60 price and ₹204.72 book value. At P/B 5.63 and P/E 104.12, the market is paying dearly for Carborundum's abrasives and bearings franchise. The Graham Number is ₹230.09, so the margin of safety is -257.80%; I see no bargain here. Business quality has some merit: ROCE 16.12%, debt/equity only 0.10, Altman Z-Score 4.33, Piotroski F-Score 7/9, and five-year revenue CAGR 13.49%. Latest quarter sales were ₹1,291 Cr and net profit ₹73 Cr, so it is profitable. But ROE is just 6.84%, free cash flow is -₹67 Cr, and profit growth is -44.58% even as sales growth is 79.36%. That tells me growth may be bought or lumpy, not yet converting into owner earnings. Dividend yield is 0.35%, so little cash return. Promoter holding 38.90% is moderate. EV/EBITDA of -0.91 is unusual and I would not treat it as a clean valuation signal. The FairStock Score of 54/100 confirms mixed evidence. The 52-week range of ₹735.20 to ₹1,369.05 shows how sentiment has swung; today's price sits well above the low. In Buffett's terms, this is a decent industrial business with a low-debt balance sheet, but the price assumes a lot. At ₹1,151.60, I would wait for a wider margin of safety, better ROE, positive FCF, and profit growth to match sales. Until then, it is a watchlist candidate, not a buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer