Buy Grasim Industries; target of Rs 2600: Sharekhan

Sharekhan's research report on Grasim Industries

Grasim formally launches the Paints business with an ambitious target of achieving Rs. 10,000 crore in revenues and turning profitable within three years of full-scale operations. Its 1332 MLPA capacity target remains on track by the FY2025 end, while it highlighted that incremental 500 MLPA additions in the next phase would be made at a much lower capex outlay. The management presented its 5D strategy viz. Design, Develop, Distribute, Disrupt and Delight strategy touching key aspects which are being implemented to achieve scale expeditiously.

Outlook

We retain a Buy on Grasim with an unchanged PT of Rs. 2,600, considering a healthy growth outlook for its key subsidiaries and standalone businesses.

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