Buy Carborundum Universal, target price Rs 535: IIFL

IIFL has buy call on Carborundum Universal with a target price of Rs 535. The current market price of Carborundum Universal Ltd. is Rs 517.9.

Carborundum Universal Ltd., incorporated in the year 1954, is a Mid Cap company (having a market cap of Rs 9653.26 Crore) operating in Industrial Consumables sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 738.59 Crore, up 5.22 % from last quarter Total Income of Rs 701.95 Crore and up 12.98 % from last year same quarter Total Income of Rs 653.75 Crore. Company reported net profit after tax of Rs 82.33 Crore in latest quarter.


Investment Rationale
Stock is on the verge of giving a long-term flag pattern breakout on the daily chart.

Promoter/FII Holdings
Promoters held 42.1 per cent stake in the company as of Jun 30, 2020, while FIIs held 6.6 per cent, DIIs 28 and public and others 23.4 per cent.