Shares of Grasim Industries Ltd. rose over 4% on Thursday after the company declared their Q4 earnings, with net loss narrowing to Rs 164 crore from a loss of Rs 288 crore a year earlier. The stock was trading at Rs 3,109.9 apiece intraday.
Grasim Industries' revenue rose 31.9% year-on-year to Rs 11,774 crore from Rs 8,926 crore. The company's operating performance also improved, with the Ebitda rising to Rs 540 crore from Rs 221 crore a year earlier. Ebitda margin expanded to 4.6% from 2.5% in the corresponding quarter last year.
Brokerages were optimistic on Grasim, with Jefferies maintaining a buy rating on Grasim, and raising its target price to Rs 3,600 from Rs 3,440. Citi echoed the sentiment, also retaining its buy rating, and raising its target price to Rs 3,600 from Rs 3,450.
Earnings beat estimates, driven by robust VSF performance and narrowing losses in new businesses. Paints growth remains strong, crossing 10% market share, with further gains expected, according to the brokerages. They see cement and paints as key drivers ahead, alongside steady support from VSF and chemicals, with improving profitability and dividend inflows aiding valuation.
Grasim Industries Ltd. Share Price Today
Grasim Industries Ltd. Share Price Today
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The scrip rose as much as 4.91% to Rs 3,116.90 apiece during the day on Thursday. It pared gains to trade at Rs 3107.10 apiece at 10:40 a.m. This compares to a 0.33% rise in the NSE Nifty 50 Index.
It has risen 14.67% in the last 12 months and 9.72% year-to-date. Total traded volume so far in the day stood at 0.89 times its 30-day average. The relative strength index was at 58.35.
Out of 10 analysts tracking the company, all 10 maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target of Rs 3,533.10 implies an upside of 14%
ALSO READ: Grasim Declares Final Dividend As Q4 Net Loss Narrows — Check Details
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