Shares of Grasim Industries Ltd. hit a record high after the flagship company of Aditya Birla Group unveiled the brand name of its paint business on Thursday.
The market launch of Birla Opus is scheduled for the fourth quarter of the current financial year. Grasim will offer a full suite of high-quality products in the decorative paints segment, according to an exchange filing.
Ahead of the launch, Grasim has successfully piloted the painting services in key metros and introduced a range of imported wood finishes. It had previously committed an investment of Rs 10,000 crore towards setting up the paints business, which will have a total capacity of 1,332 million litres per annum.
"We endeavour to become a profitable No. 2 player in the coming years and announcing our brand name is the first of many steps that will follow in this direction," Kumar Mangalam Birla, chairperson of Aditya Birla Group, said. "Our foray into decorative paints is a strategic portfolio choice that enables us to tap into a high-growth market and expand our presence in the vibrant Indian consumer landscape."
Shares of the company was trading 0.10% higher at Rs 1,935 apiece, compared to a 0.07% advance in the benchmark NSE Nifty 50 Index as of 11:55 a.m. The share price rose as much as 1.09% during the day to hit a lifetime high at Rs 1,954 apiece.
The stock has risen 12.1% on a year-to-date basis. The total traded volume stood at 2.4 times its 30-day average. The relative strength index was at 75, implying that the stock maybe overbought.
Seven out of the 10 analysts tracking Grasim maintain a 'buy' rating on the stock, two recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 4.1%.
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