Sharekhan has given Buy recommendation for Grasim Industries with a target price of Rs. 1880 in its research report issued on Sep 17, 2021
Sharekhan’s research report on Grasim Industries
Grasim stands to benefit from government’s relief package to telecom sector as Vodafone Idea avoids bankruptcy and gets fairly longer period to better manage cash flows. Grasim’s chemicals business is slated to benefit from rising caustic soda prices which have been on an uptrend with caustic soda flakes and lye prices rising 6% q-o-q and 17% q-o-q respectively during Q2FY2022 till date. VSF prices have been treading lower since March 2021 while spreads with cotton have risen to historic highs, which may drive up VSF prices as demand picks up.
We retain a Buy on Grasim with a revised PT of Rs. 1880 reducing holding company discount for its listed entities in financial services and telecom.