Buy Grasim Industries; target of Rs 955: Sharekhan
Sharekhan’s research report on Grasim Industries
In Q1, Grasim’s standalone adjusted net profit was affected by weak operating margins y-o-y in both Viscose and Chemical verticals due to pressure on realisation. Grasim’s capacity expansion plan of Rs. 7793 crore in both Viscose and Chemical verticals to get operationalised during H2FY2021. The near outlook for Viscose and Chemical is challenging owing to continued US-China trade war, overcapacities in Indonesia and weak demand in user industries.
We retain Buy on Grasim Industries with revised PT of Rs. 955 owing to attractive valuation post factoring 50% holding company discount for its listed subsidiaries and investments.
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