Buy Grasim; target of Rs 3410: Motilal Oswal

Motilal Oswal is bullish on Grasim has recommended buy rating on the stock with a target price of Rs 3410 in its research report dated November 05, 2025.

Broker Research

November 06, 2025 / 20:55 IST

BUY

26 Aug, 2025 12:21

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Motilal Oswal's research report on Grasim

GRASIM’s 2QFY26 EBITDA was above our estimate, fueled by outperformance in the chemical business, while the VSF performance was in line. EBITDA increased ~13% YoY to INR3.7b (~14% beat). OPM contracted 50bp YoY to 3.8% (est. 3.5%). Adj. PAT grew ~6% YoY to INR8.0b (in line). However, Mr. Rakshit Hargave, CEO of the Paints business, who had joined GRASIM in Nov’21, has tendered his resignation after ~20 months of the launch of its paints brand “Birla Opus”. This will be an overhang on the stock in the near term.

Outlook

We reiterate our BUY rating with a TP of INR3,410 as we value its: 1) holding in listed subsidiaries by assigning a discount of 40% on our TP for coverage companies, 2) standalone business at 6x Sep’27E EV/EBITDA, 3) paint business at 2x of investments, 4) B2B e-commerce at 1.5x of Sep’27E (TTM) revenue, and 5) renewable business at 10x EV/EBITDA.

For all recommendations report, click here