Grasim Industries' Scaling Up Of Paint Business Exudes Confidence, ICICI Securities Says— Maintaining 'Buy'

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ICICI Securities Report

At our recently hosted Grasim Industries Ltd.'s Investors Meet, the management exuded confidence on further ramp-up of its new paint business. Flushed with initial success of product/brand acceptability in the market, Grasim is on track to meet its guidance of seizing a high-single-digit industry market share (on Mar’25 exit basis).

Further, buoyed by the success of its economy product range (fetching repeat orders from dealers), Grasim is all set to make its mark in premium decorative paint segment (fortified by recent commissioning of its plant in Mahad).

With expected scale-up in institutional segment sales (over six-nine months) and broader endeavour to operate at optimal capacity utilisation, Grasim reiterated its guidance of Rs 100 billion revenue and Ebitda breakeven in FY28.

Tracking the beaming confidence, we see limited risk to our Rs 40 billion revenue estimate for the paint segment for FY26. Maintain Buy with an unchanged target price of Rs 3,093.

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