|
Quantamental
Equity Research on CARBORUNDUM UNIVERSAL LTD | Release: 01 Dec 2018 17:25:02
UTC+05:30 | Reporting Currency: INR | Trading Currency: INR |
Exchange:NSE/BSE NSE CODE:CARBORUNIV and BSE CODE:513375 |
| Last Close: |
INR 359.4 |
| Fair Value: |
INR 266.3 |
| Est. Price by Mar 19: |
INR 338.75 |
| Market Capitalization (INR
Crs): |
6794.54 |
| Industry: |
Other Industrial Products |
| Rating: |
NOT RATED |
| Downside: |
-6% |
| Company Profile |
|
|
| Carborundum Universal manufactures and sells mainly Abrasives,
Ceramics (Industrial Ceramics, Refractories) and Electrominerals. |
| Growth Per Share |
|
|
| Particulars |
1-Year |
3-Year |
5-Year |
|
| Revenue % |
12% |
15% |
10% |
|
| EBIT % |
18% |
34% |
84% |
|
| Earnings % |
23% |
63% |
140% |
|
| Book Value
% |
13% |
44% |
48% |
|
| Stock Total
Return % |
23% |
99% |
199% |
|
|
| Share holding
pattern |
| Particulars |
%age |
|
| (A) Promoter
& Promoter Group |
42.40 |
|
| (B) FII/FPI |
4.62 |
|
| (C)
DII/Insurance Companies |
24.05 |
|
| (D) Public holding < 2 lakhs of cap. |
15.49 |
|
| (E) Others |
13.44 |
|
| Grand Total |
100.00 |
|
|
| Fundamentals
(Historical and Estimated) |
| Particulars |
Mar-10 |
Mar-11 |
Mar-12 |
Mar-13 |
Mar-14 |
Mar-15 |
Mar-16 |
Mar-17 |
Mar-18 |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
| Price |
92 |
121 |
162 |
122 |
144 |
183 |
183 |
295 |
363 |
339 |
405 |
467 |
518 |
565 |
|
| Return on
Equity |
17% |
23% |
23% |
8% |
8% |
12% |
12% |
13% |
14% |
15% |
15% |
15% |
15% |
14% |
|
| Price to
Earning |
16.9 |
13.3 |
13.9 |
25.4 |
29.5 |
26.0 |
24.0 |
31.8 |
31.9 |
24.9 |
24.9 |
24.9 |
24.9 |
24.9 |
|
| EVTI |
1.6 |
1.6 |
1.7 |
1.4 |
1.5 |
1.7 |
1.8 |
2.6 |
2.8 |
2.2 |
2.3 |
2.3 |
2.3 |
2.3 |
|
| EVTIFM |
16.9 |
13.3 |
13.9 |
25.4 |
29.5 |
26.0 |
24.0 |
31.8 |
31.9 |
24.9 |
24.9 |
24.9 |
24.9 |
24.9 |
|
| Price to Book
Value |
2.9 |
3.0 |
3.2 |
2.2 |
2.4 |
3.2 |
2.9 |
4.0 |
4.4 |
3.6 |
3.8 |
3.8 |
3.7 |
3.6 |
|
| Debt to
Equity |
0.7 |
0.5 |
0.4 |
0.4 |
0.4 |
0.3 |
0.3 |
0.1 |
0.1 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
| Dividend Yield |
1% |
1% |
1% |
1% |
1% |
1% |
1% |
1% |
1% |
1% |
1% |
1% |
1% |
1% |
|
| Cash Flow to
Firm |
16% |
10% |
3% |
1% |
5% |
10% |
7% |
4% |
3% |
4% |
5% |
5% |
7% |
7% |
|
|
| Detailed Estimates |
| Title |
Mar-18 |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
| Sales |
2,367.76 |
2,768.49 |
3,154.51 |
3,500.31 |
3,779.67 |
3,968.65 |
|
| EBITDA |
436.22 |
530.09 |
604.00 |
670.21 |
723.70 |
759.89 |
|
| EBIT |
330.22 |
406.15 |
479.14 |
548.15 |
608.01 |
662.91 |
|
| PBT |
321.61 |
397.54 |
475.52 |
548.15 |
608.01 |
662.91 |
|
| NPAT |
215.60 |
257.65 |
308.19 |
355.26 |
394.05 |
429.64 |
|
| Price to
Earning |
31.85 |
24.85 |
24.85 |
24.85 |
24.85 |
24.85 |
|
| Price to Book
Value |
4.39 |
3.61 |
3.79 |
3.83 |
3.74 |
3.60 |
|
| Debt to
Equity |
0.08 |
0.03 |
- |
- |
- |
- |
|
| Return on
Equity |
0.14 |
0.15 |
0.15 |
0.15 |
0.15 |
0.14 |
|
| Enterprise Value to Total Income (EVTI) |
2.83 |
2.23 |
2.30 |
2.34 |
2.33 |
2.34 |
|
| Enterprise Value to Total Income to Firm Margin(EVTIFM) |
37.07 |
28.91 |
28.85 |
28.48 |
27.58 |
26.71 |
|
| Price or Est.
Share Prices |
363.42 |
338.75 |
405.25 |
467.15 |
518.20 |
565.00 |
|
|
| DISCOUNTED CASH
FLOW |
| Title |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
| PBT |
397.54 |
475.52 |
548.15 |
608.01 |
662.91 |
|
| Interest |
8.61 |
3.62 |
- |
- |
- |
|
| Depreciation |
123.94 |
124.86 |
122.07 |
115.69 |
96.97 |
|
| Cash Flow
Before Tax |
530.09 |
604.00 |
670.21 |
723.70 |
759.89 |
|
| Tax Rate |
33.99 |
33.99 |
33.99 |
33.99 |
33.99 |
|
| Cash Flow
After Tax |
349.91 |
398.70 |
442.41 |
477.72 |
501.60 |
|
| Terminal Cash
Flow |
- |
7,163.02 |
|
| Total Cash
Flow |
349.91 |
398.70 |
442.41 |
477.72 |
7,664.62 |
|
| Present Value of
Cash Flow |
5,034.11 |
|
| Debt |
- |
|
| Value of Equity |
5,034.11 |
|
| Fair Value Per
Share |
266.30 |
|
|
| Equity |
|
|
|
|
6,795 |
|
| Debt |
|
|
|
|
129 |
|
|
| Beta |
Take from Reuters |
|
|
0.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Risk Free Rate |
Prevailing Yield in India |
|
|
8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Market Risk Premium |
Assuming 8.82% premium
for Equity Investments |
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Paid |
|
|
|
|
9 |
|
| Tax Benefit |
|
|
|
|
3 |
|
| Interest Net of Tax |
|
|
|
|
6 |
|
| Debt |
|
|
|
|
129 |
|
| Cost of Debt |
|
|
|
|
5% |
|
| Cost of Equity |
|
|
|
|
15% |
|
| Debt Weight |
|
|
|
|
2% |
|
| Equity Weight |
|
|
|
|
98% |
|
| WACC |
|
|
|
|
15% |
|
|
| Cash Flow of Mar-23 E |
|
|
|
|
501.60 |
|
| Growth |
|
|
|
|
7.2% |
|
| Present Value of Terminal
Cashflow |
|
|
|
|
7,163.02 |
|
|
| Peer Comparision |
| # |
Name |
CMP
Rs. |
Mar
Cap Rs.Cr. |
B.V.
Rs. |
Annualized
ROE % |
ROCE
% |
Latest
EVTI |
Latest
EVTIFM |
CMP
/ BV |
P/E |
Debt
/ Eq |
Div
Yld % |
Growth
Rate R % |
SGR
% |
Ann
Total Income |
PQEIOI |
QoQ
Sales % |
Qtr
Sales Var % |
QoQ
Profits % |
Qtr
Profit Var % |
Graham's
Number Rs. |
| 1 |
Carborundum Uni. |
362.25 |
6,848 |
87.90 |
20.04 |
20.44 |
2.47 |
33.16 |
4.12 |
27.68 |
0.08 |
0.62 |
16.09 |
15.84 |
2,698 |
42.33 |
143 |
3.98 |
12.35 |
-3.92 |
7.32 |
| 2 |
Grindwell Norton |
491.15 |
5,438 |
90.99 |
20.52 |
23.19 |
2.96 |
34.37 |
5.40 |
32.21 |
- |
1.02 |
12.93 |
12.97 |
1,687 |
58.36 |
152 |
9.36 |
21.03 |
-6.79 |
12.98 |
| 3 |
Wendt India |
3,048.45 |
610 |
647.20 |
19.03 |
16.16 |
3.39 |
37.21 |
4.71 |
33.55 |
- |
0.82 |
11.78 |
12.84 |
170 |
79.74 |
161 |
-1.82 |
12.67 |
-14.34 |
73.58 |
| 4 |
Orient Abrasives |
28.75 |
344 |
17.25 |
6.78 |
10.38 |
1.80 |
22.99 |
1.67 |
20.43 |
0.31 |
0.87 |
5.59 |
6.91 |
222 |
63.57 |
199 |
-38.39 |
-26.36 |
-28.27 |
23.39 |
| 5 |
Welcast Steels |
698.00 |
45 |
528.93 |
9.38 |
7.75 |
0.17 |
20.96 |
1.32 |
48.03 |
0.15 |
0.29 |
8.61 |
7.25 |
295 |
74.85 |
97 |
14.08 |
46.97 |
454.55 |
12.96 |
| 6 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
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