Loading...
Back to narrative

GRASIM: Renewable Energy Investments Will Support Long Term Captive Power Savings

Indian Infrastructure Investments Will Expand Markets Amid Competitive Risks

GRASIM logo
GRASIM
AnalystConsensusTarget
Not Invested
Published 24 Nov 2024

Update shared on 18 Dec 2025

Fair value Increased 0.28%
Previous
n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
10.6%
7D
0.4%

Analysts have modestly raised their fair value estimate for Grasim Industries from ₹3,293 to ₹3,302, reflecting slightly lower perceived risk and stable long term growth and margin assumptions despite limited new Street Research inputs.

What's in the News

  • A board meeting is scheduled on December 9, 2025 to consider a proposal for Essel Mining and Industries to infuse INR 5,000 million into wholly owned subsidiary Aditya Birla Renewables via a preferential equity issue within FY 2026 to meet urgent business needs (Key Developments).
  • A board meeting on November 5, 2025 will review and approve unaudited financial results for the quarter and half year ended September 30, 2025 (Key Developments).
  • The November 5, 2025 board agenda also includes changes in senior management personnel, indicating potential leadership realignments (Key Developments).
  • On the same date, the board will evaluate the acquisition of 26 percent equity stakes in multiple renewable energy SPVs serving Grasim plants in Gujarat, Andhra Pradesh, and Odisha as captive users, reinforcing the company’s decarbonisation and cost optimisation focus (Key Developments).

Valuation Changes

  • The fair value estimate has risen slightly from ₹3,293.09 to ₹3,302.18, implying a modest uplift in intrinsic value.
  • The discount rate has fallen slightly from 17.97 percent to 17.85 percent, indicating marginally lower perceived risk in the cash flow profile.
  • Revenue growth is effectively unchanged at about negative 46.77 percent, suggesting no material revision to near term topline assumptions.
  • The net profit margin is essentially stable at around 4.35 percent, reflecting unchanged expectations on profitability.
  • The future P/E has edged down marginally from 367.91x to 367.86x, indicating a negligible adjustment to the long term valuation multiple.

Have other thoughts on Grasim Industries?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.