Karvy initiates coverage on Carborundum Universal Ltd (CUMI) with a Buy Rating. CUMI's growth, to be driven by recovery in domestic abrasives and ceramics business at a CAGR of 9.8% and 7.2% during FY15-17E. Restructuring of South-African electro minerals operations to restrict cash loss and benefits of the same are expected to beyond FY17E. We expect the EBITDA and PAT margin to improve by over 400bps during FY15-17E to 17.1% and 8.4% by FY17E. Return ratios, RoE and RoCE, could revive back to 15.9% and 20% by FY17E by improving over 700bps during FY15-17E.