Sharekhan's research report on Grasim Industries
Grasim Industries Limited (Grasim) reported largely in performance led by strong revenue growth in both Viscose and chemical divisions. Both witnessed q-o-q contraction in OPM as per expected lines. The company upwardly revised FY2023 capex to Rs. 3498 crore including chlorine VAP expansion and de-bottlenecking of pulp capacity. It incurred Rs. 1263 crores capex in paints for H1FY2023. The first factory for paints is expected to be rolled out in Q4FY2024 with 200-220MLPA capacity. It would also be doing commercial launch of its B2B E-commerce business by Q4FY2024.
We retain Buy on Grasim with a PT of Rs. 2,005 factoring our upwardly revised price target of UltraTech, and higher valuation of Aditya Birla Capital.