Buy Grasim Industries; target of Rs 3303: ICICI Securities

ICICI Securities is bullish on Grasim Industries has recommended buy rating on the stock with a target price of Rs 3303 in its research report dated November 06, 2025.

Broker Research

November 06, 2025 / 22:34 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities's research report on Grasim Industries

Grasim Industries’ (Grasim) Q2FY26 EBITDA, at INR 3.66bn, fared better than our INR 3.26bn forecast – driven by better than-expected performance from the CSF and other small segments. For its paints business (Birla Opus), while revenues dipped marginally QoQ, the segment nonetheless gained market share with industry revenues likely having declined, both on a YoY and QoQ basis. Enthused by record sales seen in Sep/Oct’25, Grasim reiterated confidence to meet its INR 100bn revenue guidance (as well as turning the segment profitable) in FY28. For its B2B e-commerce segment, revenues grew 15% QoQ; thereby, offering scope to exceed the segment’s revenue guidance of INR 85bn in FY27. Echoing management’s confidence, we retain BUY; however, our TP stands revised at INR 3,303 (vs. INR 3,480), mainly due to a reduction in our fair value estimate of its key holding UltraTech Cement (partly offset by increase in fair value of Adiya Birla Capital).

Outlook

While we stay optimistic, further revenue traction in paints remains the key monitorable. Maintain BUY with an SoTP-based revised TP of INR 3,303 (INR 3,480 earlier).

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