Grasim Industries stock gains 1% after Q2 net profit rises 15% to Rs 1,164 crore

Grasim Industries on November 13 reported consolidated net profit for the quarter ended September 30, 2023 at Rs 1,163.75 crore.

Shares of Grasim Industries jumped nearly 1 percent in early trade on November 15 post registering a 15 percent rise in Q2 net profit. At 9:15am, the Grasim Industries stock was trading at Rs 1946.27 on NSE.

Grasim Industries, on November 13, reported consolidated net profit for the quarter ended September 30, 2023, at Rs 1,163.75 crore, registering a growth of 15.31 percent from Rs 1,009.17 crore in the same quarter last year.

Revenue from operations came in at Rs 30,220.68 crore, up 9.95 percent from Rs 27,485.54 crore in the corresponding quarter last fiscal, the company said in an exchange notification. Grasim's EBITDA rose by 19 percent YoY to Rs 4,509 crore thanks to contributions from key subsidiaries UltraTech Cement and Aditya Birla Capital.

Global brokerage firm Jefferies has given a ‘buy’ rating to the Grasim Industries stock with a target price of Rs 2270 per share in a report released on November 13, 2023.

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Morgan Stanley is ‘overweight’ on Grasim Industries and has assigned a target of Rs 1,985 per share in a report released after the results. The report further stated that “Q2 EBITDA fell below estimates, mainly due to weak performance in the chemical business, partially offset by the Viscose business. Paints business launch is on track, and B2B e-Commerce expansion is underway.”

The Grasim Industries stock has given a return of 10.88 percent over the last six months. The benchmark Nifty50 index has given a return of 5.68 percent over the same duration.

Also Read: Grasim Industries Q2 net profit rises 15% to Rs 1,164 crore

The company noted that pent-up festive demand resulted in volume improvement in the Viscose Staple Fibre (VSF) business while oversupply in the domestic market of caustic soda and lower realizations in line with a sharp decline in global prices impacted the overall standalone performance. For its viscose business, festive demand and inventory replenishment in the domestic value chain resulted in volume growth while export demand for the value chain remained weak from major overseas markets.

In the textile segment, elevated input prices impacted the performance in the linen sub-segment, the company said, whereas, in the chemicals business, caustic soda sales volume increased by 3 percent YoY and 5 percent QoQ.