Karvy initiates coverage on Grindwell Norton Ltd (GWN) with a Buy Rating. GWN to benefit from up-tick in industrial and investment activity. Revenues could grow by 11% CAGR during FY15-17E with abrasives division growing at a CAGR of 9.4% and ceramics division growing at a CAGR of 8.2% during the same period. GWN has made prudent investments in capacities with blended utilisation levels currently averaging below 60% could benefit from operating leverage during FY15-17E with asset turnover improving over 1.2x by FY17E. GWN has enviable parental backing from Saint Gobain with access to cutting edge product and process technologies apart from access to multiple markets for export of products. We initiate a coverage on GWN with a BUY rating for a target price of Rs. 890 at 31x FY17E EPS which is 2 standard deviation of one year forward mean PE during FY05-15 representing an upside potential of 17% for a 9-12 months period.