Grasim Industries Ltd. share price target

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...

GRASIM's 2QFY21 result exhibits a strong recovery from the COVID pandemic. Both the Viscose and Chemicals businesses have seen near normalization of volumes and bottoming out of prices/margins. While...