IIFL Securities's Stock Pick Today: Buy Carborundum Universal with Target Rs 1275

IIFL Securities has initiated coverage on Carborundum Universal with a 'buy' call and a target price of Rs 1275, implying an upside potential of around 3.8%. The current market price of Carborundum Universal is Rs 1228.65. The brokerage firm believes that the company's strong product portfolio, market leadership in abrasives, and diversified customer base position it well to capitalize on the growing demand for industrial abrasives and refractories in India and select international markets.

About Carborundum Universal:

Carborundum Universal Limited, listed on the National Stock Exchange (NSE) in India, is a leading manufacturer of abrasives, ceramics, and electro minerals. Founded in 1898, the company operates across India and has a global presence with over 15 manufacturing facilities. Carborundum Universal's product portfolio includes abrasives (coated, bonded, and superabrasives), ceramic products (refractory, sanitaryware, and technical ceramics), and electro minerals (silicon carbide, fused alumina, and garnet). The company caters to various industries, including automotive, construction, glass, metalworking, and electronics.

52 Week Price Trend:

Carborundum Universal, a leading manufacturer of abrasives and electro minerals, has seen its stock price fluctuate within a significant range over the past 52 weeks. The current market price (CMP) of Rs 1228.65 is above the 52-week low of Rs 923.35, but below the 52-week high of Rs 1304.9. This indicates that the stock has potential for both upside and downside movement in the near term. Investors should closely monitor the company's financial performance and industry trends to make informed trading decisions.

Stratzy's MOST Analysis:

CARBORUNIV has been rated AAA by Stratzy's MOST Framework, indicating a low fundamental risk. This rating is based on the company's strong management, positive outlook, high safety, and favorable trend. The company's management has a proven track record of success, and the outlook for its industry is positive. Additionally, CARBORUNIV has a strong safety record and is positioned to benefit from favorable trends in the market. As a result, investors can be confident in the company's long-term prospects.

Company's Fundamentals:

Carborundum Universal (NSE: CARBORUNIV) is a company that trades on the National Stock Exchange (NSE) of India. At the time of writing, its stock has a price-to-earnings (PE) ratio of 54.7, a price-to-book (PB) ratio of 7.07, and a dividend yield of 0.33%. The PE ratio measures the current market value of a share relative to its per-share earnings. The PB ratio compares a company's market value to its book value, which is the value of its assets minus its liabilities. The dividend yield represents the annual dividend per share divided by the current market price of the share.

Fundamental and Technical information provided in this blog were last updated on 22 Mar, 2024

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