Sharekhan's research report on Grasim Industries
The company announced terms for Rs. 4,000 crore rights issue at an issue price of Rs. 1,812 per share, entailing 3.4% equity dilution in-line with street’s expectations. Repayment of debt from the rights issue along with funding balance capex for paints of over Rs. 5,200 crore via a mix of D/E would keep standalone leverage under check and under management’s stated guidance. It remains on track to set up six units with an aggregate capacity of 1332 MLPA by Q4FY2025 with three units to commence operations from Q4FY2024. We expect the paints business to be earnings accretive from FY2026.
Outlook
We retain Buy on Grasim with an unchanged PT of Rs. 2,300, considering a healthy growth outlook for its key subsidiaries and standalone businesses.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
