Carborundum Universal rallies almost 52 per cent on YTD basis

On a YTD basis, Carborundum Universal Limited has rallied by approximately 52 per cent, making an all-time high level recently of Rs 616.20 from Rs 405.20 as of December 31, 2020, on BSE. 

Carborundum Universal manufactures and sells abrasives, ceramics (industrial ceramics, refractories), and electrominerals. Its operations are carried out through over 10 manufacturing facilities located pan India, Russia, and other countries. 

One of the main reasons behind the recent rally is the strong performance that it delivered during March quarter i.e. Q4FY21. Its consolidated revenue during Q4FY21 came in at Rs 756.57 crore as against Rs 593.97 crore in Q4FY20, registering a 27.4 per cent YoY increase. Its EBITDA grew by 54.6 per cent YoY to Rs 158.46 crore as against Rs 102.47 crore in Q4FY20, with a corresponding margin expansion of 369 bps. EBITDA margin for the quarter stood at 20.9 per cent. PAT for the quarter came in at Rs 96.19 crore as against Rs 93.92 crore in the corresponding quarter last year, with a YoY increase of 2.4 per cent. 

It has recommended a final dividend of Rs 1.50 per share (150 per cent on the face value of Re 1) to the shareholders of the company. It had earlier paid an interim dividend of Rs 1.50 per share. 

The company has plans to explore opportunities under high purity silicon carbide used in 5G technology, advanced materials used to store food, pharma, etc. It is also focussing on catering to electric vehicles and battery opportunities. 

Also, new export opportunities have opened for the company under the wear ceramics segment as it recently installed the new coat maker. 

On Wednesday, the stock of Carborundum Universal had closed 2.05 per cent lower at Rs 583.15 after making an intraday high of Rs 599.75 during the day on BSE.