Grasim Industries Ltd. share price forecast

Grasim Industries’ (Grasim) Q2FY23 standalone EBITDA at Rs9.6bn (up 19% YoY) was below our / consensus estimates. VSF EBITDA fell to ~Rs15/kg (calculated) from Rs21/kg QoQ and Rs33/kg YoY owing to inflation in pulp, caustic soda, fuel, etc.

Grasim Industries’ (Grasim) Q1FY23 standalone EBITDA at Rs13.2bn (up 78% YoY) was significantly above our / consensus estimates led by higher VSF volumes (94% utilisation of expanded capacities) and record profitability (30% EBITDA margins) in chemicals.

to Rs 12,984.93 crore (accounting for 52.19% of total sales). Sales of Chemicals - Caustic Soda 2.51% of total sales). Sales of Financial Services segment has gone up 11.53% to Rs 5,599.93 crore (accounting for 22.51% of total sales). Sales of Viscose - Pulp,Viscose Staple Fibre and Filament Yarn segment has gone up 55.49% to Rs 3,335.44 crore (accounting for 13.40% of...

Focus on backward integration in the Chemical segment should improve chlorine usage as Grasim plans to increase chlorine consumption in value added products (VAPs) to 40% by FY25E from 28% in FY21. Chemical segment's OPM should improve to 19% in FY23E from 13% in FY21. Further, likely capacity expansions of 37%/33% in the VSF/Caustic soda segments, respectively, should improve volume/profits during FY22-24E. We estimate a 16%/15% volume CAGR for the VSF/Chemical business, respectively, over FY21-24. Grasim's plan to augment the capex of its Paints business indicates its intent of...

Strong-demand momentum, increase in prices and capacity expansion remain key growth drivers. However, higher energy, raw material, and logistics costs are expected to put pressure on margins. Hence, we...

businesses. Backed by strong demand, realisation and volumes have improved in key businesses, offsetting the cost increase. Grasim's consolidated revenue for Q2FY22 was up 26 per cent at Rs 22,564.22 crore as against Rs.17949.53 crore during the corresponding quarter last year. Consolidated PBIDTA grew 12% to Rs 5,289.87 crore in Q2 FY22 as against Rs 4,439.51 crore in Q2 FY21. The demand momentum picked up in Q2 FY22 and continued thereafter across all businesses. Realisation and volumes have improved in key businesses on account of strong...

Grasim' 2QFY22 operating profit was 7% below our estimate due to lower profits in the Chemical segment (OPM down 4.9pp QoQ v/s our estimate of a 1.3pp improvement). Volume/EBITDA was 10%/16% above our estimate. The management said the impact of price hikes will be felt in 2HFY22 and margin should improve in the Chemical segment. We have reduced our FY23E standalone EBITDA by 7% to factor in higher costs for the Chemical business. We value the standalone business at 6x Sep'23E EV/EBITDA and other listed subsidiaries at a 40% holding company...

Grasim Industries, Net Profit up 612% YoY to Rs 1667 cr Net sales (including other operating income) of Grasim Industries has increased 52.72% to Rs 19,919.4 crore. Sales of Cement segment has gone up 54.21% to Rs 11,829.82 crore (accounting for 58.84% of total sales). Sales of Chemicals segment has gone up 104.75% to Rs 1,436.48 crore (accounting for 7.14% of...

Improved demand, recovery in prices and capacity expansion in epoxy business remain key growth drivers. However, surging fuel trends remain concern in the near-term. We maintain our HOLD rating on the stock with a revised TP of Rs. 1,517 based on SOTP valuation. Topline growth supported by strong demand and improved prices Q4FY21 revenue rose 26.1% YoY to Rs. 24,399cr (+16.2% QoQ) aided by strong growth across all business segments. Cement revenue grew 32.7% YoY to Rs. 14,406cr, supported by growing volumes (27.8mt). Viscose Pulp business revenue increased by...

Revenue and EBITDA from the discontinued operations (Fertiliser Business) for Q4FY21 stood at Rs.560.96 Cr. and Rs.33.16 Cr. (Q4 FY 20: Rs.622.73 Cr. and Rs.68.11 Cr.) respectively which is not included in the financials above. The Fertiliser Business divestment process is expected to be completed by Q2FY22 after receipt of NCLT approvals for the Scheme of Arrangement amongst other pending approvals. While the signs of economic recovery picking up momentum was visible during the Q4FY21, the...

GRASIM's 4QFY21 result exhibits the benefits of higher VSF prices and sustained cost reduction as EBITDA grew 106% YoY (26% QoQ) to INR8.1b. We cut our FY22E/FY23E standalone EBITDA by 7%/17% to factor in weak margin outlook for the Chemical business. The holding company discount of...

The improved demand scenario, better capacity utilization and cost control measures will remain key growth drivers. However, ECU realization would remain weak in near-term. We maintain our HOLD stance on the stock and roll forward our valuation with a revised TP of Rs. 1,321 based on SOTP valuation. Uptick in volumes leads higher sales In Q3FY21, topline grew 17.0% QoQ to Rs. 20,986cr (+12.7% YoY) due to strong sequential strong growth seen across verticals. Cement Grey, White and Allied...

Grasim Q3 profit jumps 95% to Rs 359.4 crore, revenue misses estimates Grasim Industries reported an over two-fold jump in its consolidated net profit to Rs 2,152.33 crore for the third quarter ended December 31. The company had posted a net profit of Rs...

Grasim's Entry unlikely to shake paint majors Grasim Industries is entering decorative paints Industry with initial capex of Rs 50bn (FY22-24) with an aim to emerge as No2 player by leveraging Birla Asian Paints (APNT IN) Consolidated...

Grasim reverts back to a growth trajectory Grasim Industries Ltd, a subsidiary of Aditya Birla Group, is a diversified company with interests in cement, textiles, retail and chemicals. It is also the...