Grasim Q4 Results Review: Core Business Weak; Paints’ Revenue Promising; Motilal Oswal Maintains 'Buy'

Management indicated that within less than six months of Pan-India operations, Birla Opus has emerged as the third-largest decorative paints brand in India, considering the Q4 FY25 exit revenue run-rate. In VSF, global demand is muted, while in China, demand has declined. This slowdown, coupled with tariff uncertainties since mid-Apr’25, has led to a cautious approach in VSF..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Grasim Industries Ltd.'s core businesses, namely viscose stape fibre and chemicals, are experiencing margin pressure due to global challenges, as demand remains subdued and new capacities for caustic soda are being introduced. However, the Paint and B2B ecommerce businesses delivered a better-than-estimated revenue run rate. Going forward, growth in revenues of these two segments and reduction in losses will be the key monitorables. Management has reaffirmed its guidance of $1 billion revenue for the B2B e-commerce business by FY27 and Rs 100 billion revenue for the paints business by FY28. We reiterate our Buy rating with a target price of Rs 3,170 as we value its: holding in listed subsidiaries by assigning a discount of 35% on our target price for coverage companies, standalone business at six times FY27E EV/Ebitda, paint business at two times of investments, and renewable business at 10x FY27E EV/Ebitda..Click on the attachment to read the full report:.Radico Gets Motilal Oswal's 'Buy' Initiation; Says Valuations Rich But Robust Growth Potential.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Grasim Q4 Results Review: Core Business Weak; Paints’ Revenue Promising; Motilal Oswal Maintains 'Buy'

Motilal Oswal reiterates Buy rating on Grasim with a target price of Rs 3,170 based on an SoTP valuation

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