1. MARKETS
  2. SECTOR : CEMENT AND CONSTRUCTION
  3. INDUSTRY : CEMENT & CEMENT PRODUCTS
  4. GRASIM INDUSTRIES LTD.
Grasim Industries Ltd. NSE: GRASIM | BSE: 500300
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2784.40 22.40 (0.81%)
Near 52W High of ₹2896.00
3.0M
NSE+BSE Volume
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NSE 14 Jul, 2025 3:31 PM (IST)

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Analyze undervaluation/ overvaluation of Grasim Industries Ltd. with current and 1 Year Forward PE

INSIGHT
Grasim Industries Ltd. is overvalued at current PE, but fairly valued on future earnings estimates
Right Now : Current PE vs 5 year Average PE
Overvalued
Fair price

Based on 5Yr Average PE

1406.7
Upside

Current PE versus 5Yr Average PE

-49.48 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Overvalued
Fair price

Based on 1Yr Forward EPS

388.5
Upside

5 Yr Average PE & 1Yr Forward EPS

-86.05 %
Info: The Grasim Industries Ltd.'s current PE is 46.69 ,while its 5 year PE average is 23.6. Its forward PE based on analyst estimates is 169.1
Note: The forward P/E ratio (or forward price-to-earnings ratio) is calculated by dividing the current share price of a company by the estimated(1Yr) future (“forward”) earnings per share (EPS) of that company.
generated report

Analyze undervaluation/ overvaluation of Grasim Industries Ltd. with historical PE and PBV ratios

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from 15 Jul, 2023 to 14 Jul, 2025

Standalone P/E

Strong Sell Zone

83.8% into P/E buy sell zone

% time spent below current P/E
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 495 days, Grasim Industries Ltd. traded 415 (83.8%) days below the current P/E of on Standalone basis.

Consolidated P/E

Strong Sell Zone

92.5% into P/E buy sell zone

% time spent below current P/E
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 495 days, Grasim Industries Ltd. traded 458 (92.5%) days below the current P/E of on Consolidated basis.

Note: This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good. Days when PE is negative are not considered in the analysis
92.5%

Strong Sell Zone

% Days traded below current P/E

46.7
 

Current P/E

31.2
 

Average P/E

32.2
 

Median P/E

388.5
 

Forward 1Y Price

169.1
 

Forward PE

16.5
 

Forward EPS

P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
17-19
 42 8.5% 42 8.5%
19-20
 46 9.3% 88 17.8%
20-21
 42 8.5% 130 26.3%
21-27
 59 11.9% 189 38.2%
27-32
 58 11.7% 247 49.9%
32-35
 84 17.0% 331 66.9%
35-42
 76 15.4% 407 82.2%
42-46
 45 9.1% 452 91.3%
46-50
Current P/E is 46.7 		43 8.7% 495 100.0%
Total 495 495
83.8%

Strong Sell Zone

% Days traded below current P/E

878.9
 

Current P/E

598.6
 

Average P/E

192.7
 

Median P/E

388.5
 

Forward 1Y Price

169.1
 

Forward PE

16.5
 

Forward EPS

P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
55-71
 25 5.1% 25 5.1%
71-75
 27 5.5% 52 10.5%
75-91
 60 12.1% 112 22.6%
91-100
 66 13.3% 178 36.0%
100-193
Forward PE is 169.06 		70 14.1% 248 50.1%
193-339
 74 14.9% 322 65.1%
339-819
 74 14.9% 396 80.0%
819-2752
Current P/E is 878.9 		50 10.1% 446 90.1%
2752-3197
 49 9.9% 495 100.0%
Total 495 495

FAQ

  • What is the PE ratio?

    In its simplest definition, the price-to-earnings ratio (P/E ratio) represents the price an investor pays per rupee of a company's earnings.
    For example, if a company has a P/E ratio of 25, investors are willing to pay INR 25 for each rupee of the company's current earnings. This indicates that investors value the stock at 25 times its current earnings, with an expectation of future earnings growth.
    The P/E ratio fluctuates based on investor sentiment towards a company. Positive sentiment drives the stock price higher, resulting in a higher P/E ratio (investors pay more for each rupee of earnings). Conversely, negative sentiment lowers the P/E ratio (investors pay less for each rupee of earnings).

  • What is the PE buy/sell zone?

    The PE buy/sell zone is calculated based on how many days a stock has traded at its current PE level.
    To do this, we compare the current PE to the stock’s historical PE performance, to find out how often (for how many days in the past) the stock has traded at its current PE value.
    If the stock has usually traded above its current PE level (it’s at a higher PE for the majority of trading days), then the stock is cheaper than usual and in the PE buy zone.
    If the stock has usually traded below its current PE level (it’s at a lower PE for the majority of trading days), then the stock is more expensive than usual and in the PE sell zone.

  • How is the PE buy sell zone useful?

    The PE buy sell zone tells you if a stock’s current PE level is unusually high or low, and if a stock doesn’t typically trade at that level. It helps investors identify stocks that are undervalued or overvalued in terms of their typical PE trading behavior.
    Investors should keep in mind that the buy zone/sell zone is not a foolproof buy or sell signal. For example, the PE of a stock may have fallen substantially due to adverse events or negative news. Or the PE may have risen sharply after the company has won new orders, made an acquisition, announced a buyback, or some other positive event. PE Buy/Sell Zone signals should be looked at in conjunction with other information.

  • Why are the number of days different for Standalone and Consolidated data?

    This can be because of any of the 2 following reasons:
    1. Days when PE is negative are not considered in the analysis. So if only 1 of the Standalone or Consolidated PE is negative and the other is not, then the days will be different
    2. Companies have reported Consolidated data for limited period.
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