Why Carborundum Universal shares hit 52-week low; fell 10% in 3 days?

Carborundum Universal shares slipped 6.8 per cent in trade on Tuesday (February 18, 2025), and hit a 52-week low at Rs 912.9 per share on BSE. The stock fell for the third straight session after the company posted its Q3 results on February 13, 2025. In three days the stock lost over 10 per cent. 

 

Around 11:17 AM, Carborundum Universal share price was down 4.75 per cent at Rs 933.4 per share on BSE. In comparison, the BSE Sensex was down 0.46 per cent at 75,646.51. The market capitalisation of the company stood at Rs 17,770.84 crore. The 52-week high of the stock was at Rs 1,835.65 per share and the 52-week low of the stock was at Rs 912.9 per share.

 

 

On Thursday, February 13, 2025, Carborundum reported its third quarter results after market hours. The company recorded a net profit for Q3 at Rs 34.78 crore as compared to Rs 111.3 crore a year ago, down 69 per cent. Its revenue for the quarter under review was up 11 per cent at Rs 1255.45 crore as compared to Rs 1130.46 crore a year ago. 

 

PL Capital in its Q3 result review, maintained 'Accumulate' rating on the stock but cut the target price to Rs 1,114 per share from Rs 1,583.

 

The brokerage believes Carborundum Universal will perform well in the long run given healthy domestic demand, capacity expansion in Electrominerals and Abrasives, value-added product launches in Engineered ceramics, strong market reach and exports. The target price was revised on the backdrop of continued challenges in the export

markets.

 

Carborundum Universal is a manufacturer of industrial products, specialising in abrasives, refractories, ceramics, and electro minerals. The company offers a wide range of industries, including automotive, steel, aerospace, and engineering. It is renowned for producing high-quality abrasives such as grinding wheels, bonded and coated abrasives, and super abrasives, used in manufacturing and metalworking processes.

 

Additionally, the company manufactures refractories that are crucial for industries requiring materials to withstand high temperatures, and high-performance ceramics used in specialised applications like defense and aerospace. 

 

In the past one year, Corborumdum Universal shares have lost 10 per cent against Sensex's rise of 4.5 per cent.