Result Update: Carborundum Universal Ltd - SELL - TP Rs.324 - Kotak

- CUMI reported Q1FY18 revenue lower than our estimate; PAT came in line with our estimate largely driven by higher other income. Management highlighted that the company has lost volume across segments due to GST transition and view it as a short term phenomenon. Company's key international subsidiaries reported growth in the quarter.

- We tweak FY18/FY19 earnings estimate to factor in expected sluggish performance in 1HFY18 in the domestic market and build prolonged recovery in the key segments. We value CUMI stock at 20x FY19 estimated earnings and move recommendation to 'SELL' from 'BUY' with revised price target of Rs 324 (Rs 338 earlier).

Shares of CARBORUNDUM UNIVERSAL LTD. was last trading in BSE at Rs.337.3 as compared to the previous close of Rs. 335. The total number of shares traded during the day was 376972 in over 1360 trades.

The stock hit an intraday high of Rs. 340.2 and intraday low of 329.65. The net turnover during the day was Rs. 125558078.

Source : Equity Bulls

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