Sharekhan has given Buy recommendation for Grasim Industries with a target price of Rs. 1430 in its research report issued on Feb 12, 2021
Sharekhan’s research report on Grasim Industries
Grasim reported strong outperformance during Q3 which was led by strong OPM for Viscose business led by higher realization, lower fixed costs and input cost benefits. Viscose demand and prices are expected to remain firm aiding in sustaining standalone profitability. Reduction in consolidated and standalone net debt continues to strengthen balance sheet. Viscose and chemical expansion plans on track and expected to complete by Q3FY2022.The board yet to approve capex plans for FY2022.
Outlook
We retain Buy on Grasim with a revised PT of Rs.1430 led by upwardly revised estimates and assigning premium due to its foray into paints business.