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Grasim Industries

NSEI:GRASIM
Snowflake Description

Average dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GRASIM
NSEI
₹570B
Market Cap
  1. Home
  2. IN
  3. Materials
Company description

Grasim Industries Limited, together with its subsidiaries, manufactures and sells viscose staple fiber, chemicals, cement, and textiles in India and internationally. The last earnings update was 72 days ago. More info.


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GRASIM Share Price and Events
7 Day Returns
1.6%
NSEI:GRASIM
2%
IN Basic Materials
0.8%
IN Market
1 Year Returns
-21.2%
NSEI:GRASIM
-5.4%
IN Basic Materials
-0.7%
IN Market
GRASIM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Grasim Industries (GRASIM) 1.6% 6.1% 5.1% -21.2% 8.1% 62.1%
IN Basic Materials 2% 6.6% 12.6% -5.4% 31.8% 103.7%
IN Market 0.8% 2.1% 5.8% -0.7% 41.2% 72.5%
1 Year Return vs Industry and Market
  • GRASIM underperformed the Basic Materials industry which returned -5.4% over the past year.
  • GRASIM underperformed the Market in India which returned -0.7% over the past year.
Price Volatility
GRASIM
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Grasim Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Grasim Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Grasim Industries.

NSEI:GRASIM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 19.9%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:GRASIM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.903 (1 + (1- 35%) (128.76%))
1.441
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.44
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.441 * 8.6%)
19.94%

Discounted Cash Flow Calculation for NSEI:GRASIM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Grasim Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:GRASIM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 19.94%)
2019 -228,084.00 Analyst x1 -190,163.56
2020 84,373.01 Analyst x1 58,650.07
2021 106,218.92 Analyst x1 61,560.10
2022 125,681.04 Est @ 18.32% 60,729.50
2023 144,647.38 Est @ 15.09% 58,273.75
2024 163,203.60 Est @ 12.83% 54,818.18
2025 181,555.88 Est @ 11.25% 50,843.76
2026 199,959.31 Est @ 10.14% 46,687.59
2027 218,676.62 Est @ 9.36% 42,569.12
2028 237,958.19 Est @ 8.82% 38,621.17
Present value of next 10 years cash flows ₹282,589.68
NSEI:GRASIM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹237,958.19 × (1 + 7.55%) ÷ (19.94% – 7.55%)
₹2,065,409.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹2,065,409.26 ÷ (1 + 19.94%)10
₹335,220.77
NSEI:GRASIM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹282,589.68 + ₹335,220.77
₹617,810.44
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹617,810.44 / 657.60
₹939.5
NSEI:GRASIM Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹939.50
Current discount Discount to share price of ₹867.25
= -1 x (₹867.25 - ₹939.50) / ₹939.50
7.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Grasim Industries is available for.
Intrinsic value
8%
Share price is ₹867.25 vs Future cash flow value of ₹939.5
Current Discount Checks
For Grasim Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Grasim Industries's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Grasim Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Grasim Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Grasim Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:GRASIM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹20.51
NSEI:GRASIM Share Price ** NSEI (2019-04-18) in INR ₹867.25
India Basic Materials Industry PE Ratio Median Figure of 50 Publicly-Listed Basic Materials Companies 20.68x
India Market PE Ratio Median Figure of 2,738 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Grasim Industries.

NSEI:GRASIM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:GRASIM Share Price ÷ EPS (both in INR)

= 867.25 ÷ 20.51

42.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grasim Industries is overvalued based on earnings compared to the IN Basic Materials industry average.
  • Grasim Industries is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Grasim Industries's expected growth come at a high price?
Raw Data
NSEI:GRASIM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 42.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
33.5%per year
India Basic Materials Industry PEG Ratio Median Figure of 22 Publicly-Listed Basic Materials Companies 1.63x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:GRASIM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 42.28x ÷ 33.5%

1.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grasim Industries is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Grasim Industries's assets?
Raw Data
NSEI:GRASIM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹850.66
NSEI:GRASIM Share Price * NSEI (2019-04-18) in INR ₹867.25
India Basic Materials Industry PB Ratio Median Figure of 64 Publicly-Listed Basic Materials Companies 1.4x
India Market PB Ratio Median Figure of 3,628 Publicly-Listed Companies 1.11x
NSEI:GRASIM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:GRASIM Share Price ÷ Book Value per Share (both in INR)

= 867.25 ÷ 850.66

1.02x

* Primary Listing of Grasim Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grasim Industries is good value based on assets compared to the IN Basic Materials industry average.
X
Value checks
We assess Grasim Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)
  5. Grasim Industries has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Grasim Industries expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Grasim Industries expected to grow at an attractive rate?
  • Grasim Industries's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Grasim Industries's earnings growth is expected to exceed the India market average.
  • Grasim Industries's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:GRASIM Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:GRASIM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 33.5%
NSEI:GRASIM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 10.5%
India Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 20.6%
India Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 8.5%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:GRASIM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:GRASIM Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 891,936 56,122 4
2020-03-31 806,944 49,119 6
2019-03-31 729,557 -119,063 41,776 4
NSEI:GRASIM Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 697,282 13,480
2018-09-30 663,604 9,333
2018-06-30 632,088 29,042
2018-03-31 561,980 -33,932 26,786
2017-12-31 487,783 27,330
2017-09-30 420,884 29,064
2017-06-30 368,288 32,275
2017-03-31 360,684 72,878 31,673
2016-12-31 373,154 30,530
2016-09-30 372,125 29,653
2016-06-30 369,953 26,818
2016-03-31 344,875 58,684 24,681

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Grasim Industries's earnings are expected to grow significantly at over 20% yearly.
  • Grasim Industries's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:GRASIM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Grasim Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GRASIM Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 78.37 85.37 67.72 3.00
2020-03-31 68.35 77.70 57.84 4.00
2019-03-31 63.55 70.80 56.29 2.00
NSEI:GRASIM Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 20.51
2018-09-30 14.20
2018-06-30 44.45
2018-03-31 44.22
2017-12-31 48.96
2017-09-30 56.92
2017-06-30 69.13
2017-03-31 67.85
2016-12-31 65.40
2016-09-30 63.53
2016-06-30 57.46
2016-03-31 52.88

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Grasim Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Grasim Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Grasim Industries has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Grasim Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Grasim Industries's growth in the last year to its industry (Basic Materials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Grasim Industries's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Grasim Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Grasim Industries's 1-year earnings growth is negative, it can't be compared to the IN Basic Materials industry average.
Earnings and Revenue History
Grasim Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Grasim Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GRASIM Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 697,281.80 13,480.40 142,607.60
2018-09-30 663,604.10 9,333.00 137,232.50
2018-06-30 632,088.10 29,042.00 128,355.10
2018-03-31 561,980.30 26,785.80 118,269.20
2017-12-31 487,782.50 27,330.30 105,247.00
2017-09-30 420,884.20 29,064.30 94,327.40
2017-06-30 368,288.30 32,275.30 84,591.10
2017-03-31 360,684.00 31,673.00 85,215.90
2016-12-31 373,153.70 30,529.70 89,675.50
2016-09-30 372,125.30 29,652.50 89,685.60
2016-06-30 369,952.50 26,817.70 90,066.80
2016-03-31 344,874.70 24,681.40 84,314.00
2015-12-31 353,396.50 21,697.40 108,969.20 246.90
2015-09-30 337,293.70 18,134.60 106,495.50 246.90
2015-06-30 334,013.70 17,413.40 81,934.50
2015-03-31 324,749.90 17,438.00 80,515.40
2014-12-31 323,185.80 19,163.90 98,334.70 280.30
2014-09-30 313,993.90 19,147.10 95,584.90 280.30
2014-06-30 304,302.80 19,486.60 70,450.60
2014-03-31 291,969.80 20,715.40 88,293.20 280.30
2013-12-31 284,672.30 22,099.10 85,379.30 202.20
2013-09-30 281,263.00 24,271.50 84,554.80 202.20
2013-06-30 278,968.00 25,963.90 80,726.00 202.20
2013-03-31 277,975.20 27,043.90 80,784.20 202.20
2012-12-31 273,886.40 26,955.30 75,676.10 122.30
2012-09-30 269,180.80 28,154.30 73,278.50 122.30
2012-06-30 260,721.70 26,137.90 71,744.60 122.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Grasim Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Grasim Industries used its assets less efficiently than the IN Basic Materials industry average last year based on Return on Assets.
  • Grasim Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Grasim Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Grasim Industries has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Grasim Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Grasim Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Grasim Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Grasim Industries's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Grasim Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Grasim Industries Company Filings, last reported 3 months ago.

NSEI:GRASIM Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 826,539.50 734,316.20 101,741.30
2018-09-30 826,539.50 734,316.20 101,741.30
2018-06-30 836,987.30 670,698.10 106,197.70
2018-03-31 836,987.30 672,035.10 94,183.30
2017-12-31 824,142.90 608,909.00 102,667.10
2017-09-30 824,142.90 608,909.00 102,667.10
2017-06-30 410,887.40 92,130.30 97,037.70
2017-03-31 410,890.10 92,130.30 71,217.40
2016-12-31 385,523.70 100,543.70 82,753.30
2016-09-30 385,523.70 100,543.70 82,753.30
2016-06-30 343,151.50 128,407.10 54,935.30
2016-03-31 361,581.30 125,048.30 58,975.50
2015-12-31 321,498.00 112,557.40 30,191.40
2015-09-30 321,498.00 112,557.40 30,191.40
2015-06-30 308,215.40 119,301.90 38,780.10
2015-03-31 308,215.40 119,301.90 38,560.30
2014-12-31 299,091.90 124,157.90 54,109.10
2014-09-30 299,091.90 124,157.90 54,109.10
2014-06-30 285,502.40 96,811.60 53,342.20
2014-03-31 285,502.40 96,811.60 53,342.20
2013-12-31 274,321.70 101,298.90 64,072.10
2013-09-30 274,321.70 101,298.90 64,072.10
2013-06-30 268,510.00 93,130.00
2013-03-31 258,775.20 95,501.90 50,750.50
2012-12-31 241,218.20 80,146.70 60,812.30
2012-09-30 241,218.20 80,146.70 60,812.30
2012-06-30 223,020.30 70,357.70 53,472.70
  • Grasim Industries's level of debt (88.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (36.9% vs 88.8% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Grasim Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Grasim Industries has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Grasim Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.71%
Current annual income from Grasim Industries dividends. Estimated to be 1.04% next year.
If you bought ₹2,000 of Grasim Industries shares you are expected to receive ₹14 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Grasim Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Grasim Industries's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:GRASIM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
India Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 0.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:GRASIM Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 10.22 5.00
2020-03-31 7.60 4.00
2019-03-31 6.37 4.00
NSEI:GRASIM Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-08-20 6.200 0.731
2017-08-29 5.500 0.498
2016-08-11 4.500 0.450
2016-05-09 4.500 0.499
2015-08-26 3.600 0.496
2015-05-04 3.600 0.505
2014-08-07 4.200 0.588
2013-07-10 4.500 0.816
2013-05-06 4.500 0.783
2012-07-27 4.500 0.731
2012-07-04 4.500 0.852
2012-05-07 4.500 0.928
2011-09-19 4.000 0.796
2010-05-20 6.000 1.378
2009-05-19 6.000 1.178
2009-04-21 6.000 1.665

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Grasim Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.8x coverage).
X
Income/ dividend checks
We assess Grasim Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Grasim Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Grasim Industries has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Grasim Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dilip Gaur
COMPENSATION ₹58,452,000
AGE 61
TENURE AS CEO 3 years
CEO Bio

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 of Pulp and Fibe for Aditya Birla Group. Mr. Gaur has more than 32 years experience in leadership positions in a cross section of Industries spanning Petroleum Refining, Petro chemicals, FMCG, specialty & Industrial chemicals, Fertilisers & Agri products, Nonferrous metals, oils & petrochemical etc in India, Malaysia & Egypt. Mr. Gaur served as Group Executive President and Head of Copper Business of Hindalco Industries Ltd. He served as Deputy Managing Director and Additional Whole-Time Director of UltraTech Cement Limited from October 15, 2014 to March 31, 2016 and served as its Chief Manufacturing Officer until March 31, 2016. Prior to joining Aditya Birla Group, Mr. Gaur has worked with Unilever for 24 years. He served as the Managing Director of Aditya Birla Group's Carbonblack business in Egypt ­ an Indo- Egyptian JV, before moving to Hindalco. He has been a Director of Thai Rayon Public Company Ltd since July 21, 2017. He serves as a Director of Domsjö Fabriker AB. He serves as a Director of Birla Mt Gordon, a subsidiary of Aditya Birla Minerals Limited. He served as a Non-Executive Director of Aditya Birla Minerals Limited from October 6, 2010 to October 15, 2014. Mr. Gaur is a Chemical Engineer.

CEO Compensation
  • Dilip's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Dilip's remuneration is about average for companies of similar size in India.
Management Team

Dilip Gaur

TITLE
MD, Business Head of Fibre & Pulp and Director
COMPENSATION
₹58M
AGE
61
TENURE
3 yrs

Hutokshi Wadia

TITLE
President

Sushil Agarwal

TITLE
CFO & Whole Time Director
COMPENSATION
₹53M
AGE
55
TENURE
3.8 yrs

Himanshu Kapania

TITLE
Business Head of Telecom & Vice Chairman
AGE
57

R. Manjunath

TITLE
Executive Officer of Administration
AGE
66

Pragnya Ram

TITLE
Group Executive President of Corporate Communications & CSR
AGE
73

Thomas Varghese

TITLE
Business Head of Textiles Business
AGE
57

Gopi Tulsian

TITLE
Executive President of Chemical Business
COMPENSATION
₹8M
AGE
81

R. Soni

TITLE
Senior Vice President of F & C
AGE
59

S. Sitani

TITLE
Senior Vice President
AGE
58
Board of Directors Tenure

Average tenure and age of the Grasim Industries board of directors in years:

3.8
Average Tenure
60
Average Age
  • The tenure for the Grasim Industries board of directors is about average.
Board of Directors

Kumar Birla

TITLE
Non-Executive Chairman
COMPENSATION
₹127M
AGE
51
TENURE
24.3 yrs

Dilip Gaur

TITLE
MD, Business Head of Fibre & Pulp and Director
COMPENSATION
₹58M
AGE
61
TENURE
3 yrs

Sushil Agarwal

TITLE
CFO & Whole Time Director
COMPENSATION
₹53M
AGE
55
TENURE
3.8 yrs

Himanshu Kapania

TITLE
Business Head of Telecom & Vice Chairman
AGE
57
TENURE
0.7 yrs

Atul Daga

TITLE
CFO & Whole-Time Director of UltraTech Cement Limited
AGE
53

Madhav Apte

TITLE
Independent Director
COMPENSATION
₹5M
AGE
86
TENURE
31.9 yrs

Rajashree Birla

TITLE
Non Executive Director
COMPENSATION
₹7M
AGE
75

Bhupendranath Bhargava

TITLE
Independent Director
COMPENSATION
₹4M
AGE
82
TENURE
12.1 yrs

Arun Thiagarajan

TITLE
Independent Director
COMPENSATION
₹3M
AGE
74
TENURE
2.9 yrs

Cyril Shroff

TITLE
Independent Director
COMPENSATION
₹1M
AGE
59
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
02. Apr 19 Buy Grasim Employees' Welfare Trust Company 28. Mar 19 28. Mar 19 59,559 ₹832.53 ₹49,584,450
03. Jan 19 Buy Grasim Employees' Welfare Trust Company 20. Dec 18 27. Dec 18 1,297,816 ₹822.81 ₹1,067,861,333
27. Dec 18 Buy Pilani Investment and Industries Corporation Limited Company 21. Dec 18 24. Dec 18 202,233 ₹818.37 ₹165,477,651
11. Dec 18 Buy Pilani Investment and Industries Corporation Limited Company 05. Dec 18 07. Dec 18 241,971 ₹834.89 ₹197,004,837
04. Oct 18 Buy Pilani Investment and Industries Corporation Limited Company 28. Sep 18 28. Sep 18 1,198,547 ₹1,029.61 ₹1,234,031,110
30. Aug 18 Sell Pavan Jain Individual 21. Aug 18 21. Aug 18 -400 ₹1,050.19 ₹-420,076
X
Management checks
We assess Grasim Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Grasim Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Despite Its High P/E Ratio, Is Grasim Industries Limited (NSE:GRASIM) Still Undervalued?

We'll apply a basic P/E ratio analysis to Grasim Industries Limited's (NSE:GRASIM), to help you decide if the stock is worth further research. … Looking at earnings over the last twelve months, Grasim Industries has a P/E ratio of 43.08. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Who Has Been Selling Grasim Industries Limited (NSE:GRASIM) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Grasim Industries Limited (NSE:GRASIM). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Grasim Industries Insider Transactions Over The Last Year

Simply Wall St -

What Kind Of Shareholders Own Grasim Industries Limited (NSE:GRASIM)?

A look at the shareholders of Grasim Industries Limited (NSE:GRASIM) can tell us which group is most powerful. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Let's take a closer look to see what the different types of shareholder can tell us about GRASIM

Simply Wall St -

How Much Did Grasim Industries Limited's (NSE:GRASIM) CEO Pocket Last Year?

In 2016 Dilip Gaur was appointed CEO of Grasim Industries Limited (NSE:GRASIM). … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Dilip Gaur's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Read This Before Judging Grasim Industries Limited's (NSE:GRASIM) ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.021. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why You Should Care About Grasim Industries Limited’s (NSE:GRASIM) Low Return On Capital

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Need To Know: Grasim Industries Limited (NSE:GRASIM) Insiders Have Been Selling Shares

So we'll take a look at whether insiders have been buying or selling shares in Grasim Industries Limited (NSE:GRASIM). … It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. … The Last 12 Months Of Insider Transactions At Grasim Industries

Simply Wall St -

Does Grasim Industries Limited (NSE:GRASIM) Have A Good P/E Ratio?

To keep it practical, we'll show how Grasim Industries Limited's (NSE:GRASIM) P/E ratio could help you assess the value on offer. … Grasim Industries has a price to earnings ratio of 19.36, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Does Grasim Industries Limited's (NSE:GRASIM) CEO Salary Reflect Performance?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Dilip Gaur's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Grasim Industries Limited has a market cap of ₹561.2b, and is paying total annual CEO compensation of ₹58m.

Simply Wall St -

Estimating The Fair Value Of Grasim Industries Limited (NSE:GRASIM)

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Grasim Industries Limited (NSE:GRASIM) as an investment opportunity. … by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF).

Simply Wall St -

Company Info

Description

Grasim Industries Limited, together with its subsidiaries, manufactures and sells viscose staple fiber, chemicals, cement, and textiles in India and internationally. It provides 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. The company offers grey cement; white cement under the Birla White brand; ready mix concrete; and putty. It provides caustic soda; anhydrous aluminum chloride, a catalyst used in the friedel-crafts reaction; chlorinated paraffin formulations that are used in a range of industrial applications, including flame retardants and plasticizers; chlorosulphonic acid, which is used to produce sulphates, sulphonates, and sulphonyl chlorides; polyaluminium chloride, which is used in deodorants and antiperspirants, as well as a flocculant in the water purification, treatment of drinking/potable water, wastewater treatment, and paper sizing activities; stable bleaching powder under the Vikram, Shaktiman, and Lion brands for use in water treatment, as well as for use in the textiles, pulp and paper, and carpet industries; and calcium chloride that is used in the oil industry, for treating roads, and in cement paint manufacturing, as well as epoxy products. The company provides textile products that include linen; wool, animal hair and blended wool; and wool tops and worsted yarns. It retails linen under the Linen Club Fabrics brand. The company provides non-banking financial services, private equity, commodity broking, wealth management, housing finance, life and health insurance, and general insurance advisory services. It offers ureas, fertilizers, seeds, agrochemicals, and bio stimulants. The company manufactures insulators. It is also involved in solar power designing, engineering, procurement, and commissioning business. Grasim Industries Limited was incorporated in 1947 and is based in Nagda, India.

Details
Name: Grasim Industries Limited
GRASIM
Exchange: NSEI
Founded: 1947
₹570,302,180,311
657,598,363
Website: http://www.grasim.com
Address: Grasim Industries Limited
Birlagram,
Nagda,
Madhya Pradesh, 456331,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI GRASIM Equity Shares National Stock Exchange of India IN INR 03. Nov 1994
BSE 500300 Equity Shares Mumbai Stock Exchange IN INR 03. Nov 1994
BSE 500300 INR2 Mumbai Stock Exchange IN INR 20. Apr 2019
BDL GRA92 SPON GDR 144A Bourse de Luxembourg LU USD 06. May 1993
BDL GRA99 SPONSORED GDR Bourse de Luxembourg LU USD 05. Jan 2000
NSEI GRASIM INR2 National Stock Exchange of India IN INR 20. Apr 2019
Number of employees
Current staff
Staff numbers
0
Grasim Industries employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 12:46
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/19
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.