Carborundum Universal Limited Just Missed EPS By 86%: Here’s What Analysts Think Will Happen Next

Carborundum Universal Limited (NSE:CARBORUNIV) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results overall were not great, with earnings of ₹0.66 per share falling drastically short of analyst expectations. Meanwhile revenues hit ₹15b and were slightly better than forecasts. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, Carborundum Universal’s six analysts currently expect revenues in 2027 to be ₹56.2b, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 209% to ₹23.88. Before this earnings report, the analysts had been forecasting revenues of ₹56.2b and earnings per share (EPS) of ₹23.81 in 2027. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.

View our latest analysis for Carborundum Universal

There were no changes to revenue or earnings estimates or the price target of ₹1,034, suggesting that the company has met expectations in its recent result. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Carborundum Universal at ₹1,111 per share, while the most bearish prices it at ₹940. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Carborundum Universal’s past performance and to peers in the same industry. It’s pretty clear that there is an expectation that Carborundum Universal’s revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 0.1% growth on an annualised basis. This is compared to a historical growth rate of 9.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Carborundum Universal.

The Bottom Line

The most obvious conclusion is that there’s been no major change in the business’ prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that Carborundum Universal’s revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹1,034, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn’t be too quick to come to a conclusion on Carborundum Universal. Long-term earnings power is much more important than next year’s profits. We have estimates – from multiple Carborundum Universal analysts – going out to 2029, and you can see them free on our platform here.

And what about risks? Every company has them, and we’ve spotted 3 warning signs for Carborundum Universal you should know about.

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