Grasim Industries Limited manufactures and sells of viscose staple fiber and fiber yarn, chemical and allied products, fertilizers, textiles, insulators, and cement and cement related products in India and internationally.
Solid track record, good value and pays a dividend.
Share Price & News
How has Grasim Industries's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GRASIM's share price has been volatile over the past 3 months.
7 Day Return
IN Basic Materials
1 Year Return
IN Basic Materials
Return vs Industry: GRASIM underperformed the Indian Basic Materials industry which returned -29.6% over the past year.
Return vs Market: GRASIM underperformed the Indian Market which returned -26.5% over the past year.
Price Volatility Vs. Market
How volatile is Grasim Industries's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall StIs Grasim Industries Limited's (NSE:GRASIM) P/E Ratio Really That Good?
1 month ago | Simply Wall StHow Do Grasim Industries Limited’s (NSE:GRASIM) Returns On Capital Compare To Peers?
1 month ago | Simply Wall StShould You Worry About Grasim Industries Limited's (NSE:GRASIM) CEO Pay?
Is Grasim Industries undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GRASIM (₹530.55) is trading above our estimate of fair value (₹81.43)
Significantly Below Fair Value: GRASIM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: GRASIM is good value based on its PE Ratio (8.9x) compared to the Basic Materials industry average (10.2x).
PE vs Market: GRASIM is good value based on its PE Ratio (8.9x) compared to the Indian market (9.6x).
Price to Earnings Growth Ratio
PEG Ratio: GRASIM is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: GRASIM is good value based on its PB Ratio (0.6x) compared to the IN Basic Materials industry average (0.6x).
How is Grasim Industries forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GRASIM's forecast earnings growth (11.1% per year) is above the savings rate (6.5%).
Earnings vs Market: GRASIM's earnings (11.1% per year) are forecast to grow slower than the Indian market (19.5% per year).
High Growth Earnings: GRASIM's earnings are forecast to grow, but not significantly.
Revenue vs Market: GRASIM's revenue (10% per year) is forecast to grow faster than the Indian market (8.8% per year).
High Growth Revenue: GRASIM's revenue (10% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GRASIM's Return on Equity is forecast to be low in 3 years time (6%).
How has Grasim Industries performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GRASIM has high quality earnings.
Growing Profit Margin: GRASIM's current net profit margins (6.3%) are higher than last year (1.9%).
Past Earnings Growth Analysis
Earnings Trend: GRASIM's earnings have grown by 9.1% per year over the past 5 years.
Accelerating Growth: GRASIM's earnings growth over the past year (262.5%) exceeds its 5-year average (9.1% per year).
Earnings vs Industry: GRASIM earnings growth over the past year (262.5%) exceeded the Basic Materials industry 21.9%.
Return on Equity
High ROE: GRASIM's Return on Equity (7%) is considered low.
How is Grasim Industries's financial position?
Financial Position Analysis
Short Term Liabilities: GRASIM's short term assets (₹487.1B) exceed its short term liabilities (₹461.2B).
Long Term Liabilities: GRASIM's short term assets (₹487.1B) do not cover its long term liabilities (₹999.2B).
Debt to Equity History and Analysis
Debt Level: GRASIM's debt to equity ratio (98.8%) is considered high.
Reducing Debt: GRASIM's debt to equity ratio has increased from 34% to 98.8% over the past 5 years.
Debt Coverage: GRASIM's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: GRASIM's interest payments on its debt are not well covered by EBIT (2.2x coverage).
What is Grasim Industries's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GRASIM's dividend (1.32%) is higher than the bottom 25% of dividend payers in the Indian market (0.89%).
High Dividend: GRASIM's dividend (1.32%) is low compared to the top 25% of dividend payers in the Indian market (3.79%).
Stability and Growth of Payments
Stable Dividend: GRASIM's dividend payments have been volatile in the past 10 years.
Growing Dividend: GRASIM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (11.8%), GRASIM's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GRASIM's dividends in 3 years are forecast to be well covered by earnings (20.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Dilip Gaur (62yo)
Mr. Dilip Singh Gaur has been Managing Director, Business Head of Fibre & Pulp, Director at Grasim Industries Limited since April 1, 2016. Mr. Gaur serves as Chief Executive Officer and Business Director o ...
CEO Compensation Analysis
Compensation vs Market: Dilip's total compensation ($USD861.57K) is about average for companies of similar size in the Indian market ($USD755.68K).
Compensation vs Earnings: Dilip's compensation has been consistent with company performance over the past year.
|MD, Business Head of Fibre & Pulp and Director||4yrs||₹65.46m||no data|
|CFO & Whole-Time Director of UltraTech Cement Limited||no data||no data||no data|
|Independent Director||9.67yrs||₹1.40m||no data|
|Independent Director||19.75yrs||₹1.29m||0.000050% ₹168.6k|
|Non-Executive Chairman||25.25yrs||₹133.36m||0.13% ₹445.1m|
|Non-Executive Director||10yrs||₹2.26m||0.010% ₹33.6m|
|Non Executive Director||24.08yrs||₹12.64m||0.084% ₹283.4m|
|Independent Director||3.92yrs||₹3.35m||0.00022% ₹741.8k|
|Independent Director||5.58yrs||₹2.00m||0.000040% ₹134.9k|
|Non-Executive Independent Director||0.75yr||₹1.37m||no data|
Experienced Board: GRASIM's board of directors are considered experienced (9.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GRASIM insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.8%.
Grasim Industries Limited's company bio, employee growth, exchange listings and data sources
- Name: Grasim Industries Limited
- Ticker: GRASIM
- Exchange: NSEI
- Founded: 1947
- Industry: Construction Materials
- Sector: Materials
- Market Cap: ₹337.188b
- Shares outstanding: 657.80m
- Website: https://www.grasim.com
- Grasim Industries Limited
- Madhya Pradesh
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|GRASIM||NSEI (National Stock Exchange of India)||INR2||IN||INR||No data|
|500300||BSE (Mumbai Stock Exchange)||INR2||IN||INR||No data|
|GRA92||BDL (Bourse de Luxembourg)||GDR EACH REPR 1 ORD SHARE (SPON)144A||LU||USD||May 1993|
|500300||BSE (Mumbai Stock Exchange)||Yes||Equity Shares||IN||INR||Nov 1994|
|GRASIM||NSEI (National Stock Exchange of India)||Yes||Equity Shares||IN||INR||Nov 1994|
|GRSX.Y||OTCPK (Pink Sheets LLC)||GDR(EACH REP 1 INR10)LEVEL I SPONS||US||USD||Jan 2000|
|GRA99||BDL (Bourse de Luxembourg)||GDR(EACH REP 1 INR10)LEVEL I SPONS||LU||USD||Jan 2000|
Grasim Industries Limited manufactures and sells of viscose staple fiber and fiber yarn, chemical and allied products, fertilizers, textiles, insulators, and cement and cement related products in India and internationally. The company offers viscose staple fiber, a man-made biodegradable fiber for use in apparels, home textiles, dress materials, knitted wear products, and non-woven applications; and rayon grade and wood pulp products; textile products that include linen and wool. It also provides grey cement; white cement under the Birla White brand; ready mix concrete; and putty. In addition, the company offers caustic soda, anhydrous aluminum chloride, chlorosulphonic acid, and polyaluminium chloride. Further, it provides stable bleaching powder under the Vikram, Shaktiman, and Lion brands for use in water treatment, as well as the textiles, pulp and paper, and carpet industries; and calcium chloride that is used in the oil industry and cement paint manufacturing, as well as epoxy products. Additionally, the company retails linen under the Linen Club Fabrics brand; and offers life insurance, asset management, private equity, corporate lending, structured finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management, and health insurance services, as well as urea’s, fertilizers, seeds, agrochemicals, bio stimulants, and insulators. It is also involved in solar power designing, engineering, procurement, and commissioning businesses. The company was incorporated in 1947 and is based in Nagda, India.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/09 13:02|
|End of Day Share Price||2020/04/09 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.