Sharekhan has given Buy recommendation for Grasim Industries with a target price of Rs. 1881 in its research report issued on Aug 12, 2022
Sharekhan’s research report on Grasim Industries
Grasim Industries Limited (Grasim) reported stellar performance for Q1FY2023, led by strong volume growth in VSF and historically high operating margins in its chemical and textile business verticals. The company reiterated its paints capex of Rs. 10,000 crore by FY2025, while it continues to expand its existing businesses especially the chemical division. Easing of VSF and caustic prices along with elevated input costs may put pressure on OPM in the near term. However, healthy demand and increasing value-added products would aid growth over the medium to long term.
We retain Buy on Grasim with a PT of Rs. 1,881 factoring upwardly revised estimates and lower holding company discounts for its investments, especially in UltraTech, which has a strong growth outlook going ahead.