Anand Rathi: Carborundum Universal’s Ceramics And Electro-Minerals Division Seeing Better Traction
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Anand Rathi Report
Key takeaways on hosting Carborundum Universal Ltd.’s management for a non-deal roadshow.
Carborundum Universal’s overall operations have picked up pace. Recovery is evident in its ceramics and electro-minerals divisions (EMD), in both domestic and international.
Subdued demand from end users slowed recovery in abrasives. Management talked of 80-90% of last year’s utilisation by end H1 FY20 across the businesses.
Supply disruption of minerals from China is likely to benefit EMD business of Carborundum Universal.
With greater utilisation, focus on operating efficiency, new product launches and quitting the loss-making Foskor Zirconia, management is confident of steady margins ahead.
We expect consolidated Ebitda and management fees to step up from 15.3% in FY20 to 16.5% in FY23 and drive earnings growth.
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