Grasim Industries Ltd. share price target

Grasim Industries Ltd, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies.

over Q2 September 2018. Profit was driven by superior performance of the company's subsidiaries, UltraTech Cement and Aditya Birla Capital. On standalone basis, the company reported a net profit of Rs 526.49 crore in Q2 2019 as against a net loss of Rs 1,186.66 crore in Q2 2018. Revenue from operations declined 6.3% to Rs 4,797.44 crore in Q2 September 2019...

Grasim Industries Limited's (Grasim) adjusted standalone net profit declined by 35.5% y-o-y to Rs. 526.5 crore on account of weak operating profit margin (OPM) in both viscose and chemical divisions. The VSF division was affected by global capacity overhang, elevated further by U.S.-China trade war. Caustic soda also performed poorly on the operational front owing to increased domestic capacity and weak demand. Exit prices for both VSF and caustic soda are lower, which is expected to put pressure on its standalone operations. Going ahead,...

2QFY20 standalone revenue declined 6% YoY to INR48b (in-line). EBITDA declined 38% YoY to INR6.6b (v/s est. INR9.1b); margins contracted 7pp YoY to 13.7%. Adj. PAT was down 36% YoY to INR5.3b (in-line). Volumes increased 3% YoY with revenues down 7% YoY to INR24b; EBITDA declined 34% YoY to INR3.8b due to fall in domestic 14 November 2019 realization. VSF margins declined 6.4pp YoY to 15.7%. Volumes decreased 7% YoY for the quarter.

We reiterate our BUY rating on the stock with a revised target price of Rs. 803 based on SOTP valuation. Margins up on strong cement performance Revenue grew 11.9% YoY to Rs. 18,861cr in Q1FY20 driven by strong growth in the cement (54.0% of revenue) and financial services business (19.2% of revenue) which increased by 12.8% YoY and 18.9% YoY respectively. The topline was affected by the slow growth witnessed by the Viscose business which grew 1.2% YoY and the decline in Chemicals business of 4.8% YoY. EBITDA grew 31.3% YoY to Rs. 4,217cr in Q1FY20...

Q1FY20, Profit fell in the quarter, misses estimates, dragged by exceptional loss on impairment of its payments bank venture Consolidated revenue for the quarter stood at Rs.18,861Cr.Consolidated EBITDA at Rs.4,217 Cr. recorded a growth of 31% YoY and PBT (Before Exceptional item) was up by 35% YoY to...

Grasim Industries' adjusted standalone net profit declined 31.6% y-o-y to Rs. 439 crore on account of weak operating margins in both Viscose and Chemical divisions. Both the divisions reported marginal growth in volumes y-o-y although it suffered on the realization front due to the macro environment. The near term outlook for viscose remains challenging owing to continued US-China trade war and over capacity in Indonesia. Caustic soda is affected by weak demand in user industries and declining chlorine prices. Grasim is undertaking capacity expansion of Rs. 7793 crore in...

1QFY20 standalone revenue increased 4% YoY to INR50b (v/s est. INR55b). EBITDA declined 20% YoY to INR8.4b (v/s est. INR9.4b); margins contracted 5pp YoY to 16.9%. During the quarter, GRASIM impaired its investment of INR3b in its associate, Aditya Birla Idea Payment Bank Limited (ABIPBL), which has been disclosed as an exceptional Item. Adj. PAT for 1QFY20 stood at INR4.9b (-23% YoY; v/s est. INR5.9b). VSF segment: Volumes increased 3% YoY with revenues at INR25b (+1% YoY); EBITDA declined 25% YoY to INR4.4b due to higher pulp cost on...

Headquartered in Mumbai, Grasim is the flagship company of the Aditya Birla Group. Incorporated in 1947, it commenced operations in 1948 as a textile manufacturer.

per cent YoY; EBITDA: Rs.4,639 crore up 31 per cent YoY; Consolidated PAT (Before Exceptional Items): Rs.4,112 crore up 36 per cent YoY; standalone PAT (Before Exceptional Items): Rs.2,574 crore up 30 per cent YoY; Standalone Cash...