We expect RoE to be weak at ~3% in the next two years due to (a) margin pressure in both VSF and Chemicals and (b) higher depreciation and interest cost due to capacity addition. As a result, EPS is expected to decline over Given GRASIMs conglomerate business structure, we value it on an SOTP basis. Revenue and net profit after minority interest for 3QFY20 are at INR43.26b FY19 was a peak year for VSF margins. However, we have seen significant capacity addition in both VSF and Chemicals, which led to sharp contraction in margins in the past few quarters. Our target price values (a) the standalone business (fiber, chemicals, etc.) at 10x FY21E P/E, (b) UltraTech at 60% holding company discount to target price and (c) other listed investments (AB Capital, Vodafone Idea, Hindalco, Aditya Birla Fashion) at 60%.