Grasim Q4 Results Review - Ebitda Inline; VSF Profitability Improves, Chemical Was Weak: Motilal Oswal

"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 Q4 FY24 Ebitda grew 24% YoY to Rs 5.3 billion (estimate: Rs 5.1 billion) and operating profit margin surged 1.4% YoY to 7.8% (estimate: ~8%). The VSF segment posted an Ebitda/kg of Rs 21 (estimate: Rs 18). The Chemical segment clocked an OPM of 9.4% (estimate: 14.6%) during the quarter. Higher other income led to 36% beat in PAT (adjusted for tax write-back of Rs 515.4 million and Rs 7.2 billion write-offs toward the subsidiary, AV Terrace Bay Inc, Canada) to Rs 2.3 billion (up 2.4x YoY). Management indicated that the current volume run-rate of VSF is similar to Q4 FY24. There has been some improvement in VSF prices; but sustainability needs to be seen. Caustic soda prices have remained range-bound in H1 FY25 due to subdued consumption in China, leading to higher exports globally, including to India. It reiterates its target to onboard 50,000 dealers for Paints in FY25 and plans to establish 150 depots by end-FY25. We largely retain our EPS estimates for FY25-26. We reiterate Buy with a revised target price of Rs 2,840 (earlier Rs 2,650) as we value its:holding in subsidiary companies by assigning a discount of 35% (earlier 40%);standalone business at seven times EV/Ebitda, andPaints business at 1.5 times of investments..Click on the attachment to read the full report:.PI Industries Q4 - Strong Outlook, Improved Product Mix To Boost Growth, Margins Going Ahead: Axis Securities.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 - Ebitda Inline; VSF Profitability Improves, Chemical Was Weak: Motilal Oswal

Started commercial production of Paint at three plants in April 2024

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Grasim Q4 Results Review - Ebitda Inline; VSF Profitability Improves, Chemical Was Weak: Motilal Oswal

Started commercial production of Paint at three plants in April 2024

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