Core profit of India's Carborundum to get boost from fading headwinds, Equirus says

Carborundum Universal

22/03/2024 07:10

** Shares of Carborundum Universal  CRBR.NS  up 7.2% at 1239
rupees, highest since late-Sept and marking fourth straight day
of gains
    ** Major headwinds from past 3-4 qtrs to fade in FY25,
leading to solid core profit growth for co, analysts at Equirus
Securities say
    ** Says co has grappled with weakness in abrasives retail
segment, customer issues in high-margin engineered ceramics, and
sharp correction in fused alumina prices
    ** Estimates co to report profit after tax CAGR of 24% over
FY24-FY27
    ** Maintains rating of "LONG" at TP of 1,315 rupees, an
upside of 14% from current price
    ** Equirus' rating is equivalent to a 'strong buy' as per
LSEG data
    ** Avg recommendation on stock is "buy;" median PT is 1291.5
rupees
    ** Stock up 10.8% YTD, continuing a 27% jump in 2023

 (Reporting by Aleef Jahan in Bengaluru)
 ((aleefjahan.cs@thomsonreuters.com))