Shares of Grasim Industries Ltd rose nearly 1.5% in early trade on Monday to Rs 2,685.40, after global brokerage Jefferies maintained its ‘Buy’ rating on the stock and set a target price of Rs 3,280, implying an upside of 23.5% from the previous close of Rs 2,659.40.
Despite a weaker-than-expected Q4 performance, primarily due to softness in the VSF (Viscose Staple Fibre) and chemicals segments, Jefferies remains positive on Grasim’s long-term growth trajectory.
The brokerage highlighted that Grasim is making rapid progress in its new business verticals:
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The paints segment is scaling well, with Jefferies expecting Grasim to secure high market share in the structured distribution space by FY25-end.
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Its B2B e-commerce venture is also advancing toward a $1 billion revenue target, a key milestone for the company.
Jefferies noted that successful execution in the paints business could serve as a key trigger for valuation re-rating in the medium term.
Grasim currently holds a market capitalization of Rs 1.82 trillion, a P/E ratio of 48.46, and a dividend yield of 0.37%.
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