Shares of Grasim Industries Ltd surged by 3.89% to Rs 2,710 in Tuesday’s trade after Morgan Stanley upgraded the stock to ‘Overweight’ from ‘Equal-weight’, assigning a target price of Rs 3,500, implying a 36% upside from current levels.
The global brokerage firm cited multiple opportunities playing out in Grasim’s favor, stating that new-age businesses are scaling up quickly and the value unlocking in its paints vertical is progressing well. Morgan Stanley also noted that holding company discounts are moderating, which improves the valuation attractiveness of Grasim as a diversified play.
The firm added that Grasim now becomes its top pick among Indian conglomerates, supported by a strong growth outlook across segments, particularly paints and financial services.
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