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GRAS

Grasim Industries NSEI:GRASIM Stock Report

Last Price

₹1.32k

Market Cap

₹869.3b

7D

2.6%

1Y

-12.2%

Updated

26 Jun, 2022

Data

Company Financials +
GRASIM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health1/6
Dividends3/6

GRASIM Stock Overview

Grasim Industries Limited operates in fibre, yarn, pulp, chemicals, textile, fertilizers, and insulators businesses in India and internationally.

Grasim Industries Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Grasim Industries
Historical stock prices
Current Share Price₹1,323.25
52 Week High₹1,929.80
52 Week Low₹1,276.60
Beta0.68
1 Month Change-5.26%
3 Month Change-17.86%
1 Year Change-12.18%
3 Year Change44.76%
5 Year Change6.53%
Change since IPO745.53%

Recent News & Updates

Jun 20
Should You Be Adding Grasim Industries (NSE:GRASIM) To Your Watchlist Today?

Should You Be Adding Grasim Industries (NSE:GRASIM) To Your Watchlist Today?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Shareholder Returns

GRASIMIN Basic MaterialsIN Market
7D2.6%3.3%2.3%
1Y-12.2%-19.1%-0.9%

Return vs Industry: GRASIM exceeded the Indian Basic Materials industry which returned -19.1% over the past year.

Return vs Market: GRASIM underperformed the Indian Market which returned -0.9% over the past year.

Price Volatility

Is GRASIM's price volatile compared to industry and market?
GRASIM volatility
GRASIM Average Weekly Movement4.4%
Basic Materials Industry Average Movement6.0%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: GRASIM is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GRASIM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194723,500Hari Agarwalhttps://www.grasim.com

Grasim Industries Limited operates in fibre, yarn, pulp, chemicals, textile, fertilizers, and insulators businesses in India and internationally. The company operates through Viscose, Chemicals, Cement, Financial Services, and Others segments. 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; wood pulp products; viscose filament yarn, a natural fibre for manufacturing fabrics; and textile products, such as linen and wool.

Grasim Industries Fundamentals Summary

How do Grasim Industries's earnings and revenue compare to its market cap?
GRASIM fundamental statistics
Market Cap₹869.34b
Earnings (TTM)₹70.34b
Revenue (TTM)₹957.01b

12.4x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GRASIM income statement (TTM)
Revenue₹957.01b
Cost of Revenue₹395.96b
Gross Profit₹561.05b
Other Expenses₹490.71b
Earnings₹70.34b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)107.07
Gross Margin58.63%
Net Profit Margin7.35%
Debt/Equity Ratio62.8%

How did GRASIM perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

5%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GRASIM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GRASIM?

Other financial metrics that can be useful for relative valuation.

GRASIM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA9x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does GRASIM's PE Ratio compare to its peers?

GRASIM PE Ratio vs Peers
The above table shows the PE ratio for GRASIM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.7x

Price-To-Earnings vs Peers: GRASIM is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (25.7x).


Price to Earnings Ratio vs Industry

How does GRASIM's PE Ratio compare vs other companies in the Indian Basic Materials Industry?

Price-To-Earnings vs Industry: GRASIM is good value based on its Price-To-Earnings Ratio (12.4x) compared to the Indian Basic Materials industry average (15x)


Price to Earnings Ratio vs Fair Ratio

What is GRASIM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GRASIM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GRASIM's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of GRASIM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GRASIM (₹1323.25) is trading above our estimate of fair value (₹139.27)

Significantly Below Fair Value: GRASIM is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GRASIM's PEG Ratio to determine if it is good value.


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Future Growth

How is Grasim Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.3%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GRASIM's forecast earnings growth is above the savings rate (6.7%).

Earnings vs Market: Insufficient data to determine if GRASIM's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if GRASIM's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GRASIM's revenue (11.3% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: GRASIM's revenue (11.3% 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 (14.4%).


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Past Performance

How has Grasim Industries performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


20.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GRASIM has high quality earnings.

Growing Profit Margin: GRASIM's current net profit margins (7.4%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: GRASIM's earnings have grown significantly by 20.8% per year over the past 5 years.

Accelerating Growth: GRASIM's earnings growth over the past year (72.9%) exceeds its 5-year average (20.8% per year).

Earnings vs Industry: GRASIM earnings growth over the past year (72.9%) exceeded the Basic Materials industry 2.4%.


Return on Equity

High ROE: GRASIM's Return on Equity (9.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Grasim Industries's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GRASIM's short term assets (₹567.7B) do not cover its short term liabilities (₹578.8B).

Long Term Liabilities: GRASIM's short term assets (₹567.7B) do not cover its long term liabilities (₹1,153.4B).


Debt to Equity History and Analysis

Debt Level: GRASIM's net debt to equity ratio (47.4%) is considered high.

Reducing Debt: GRASIM's debt to equity ratio has increased from 22.4% to 62.8% over the past 5 years.

Debt Coverage: GRASIM's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: GRASIM's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.76%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GRASIM's dividend (0.76%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: GRASIM's dividend (0.76%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (4.7%), GRASIM's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: GRASIM is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Hari Agarwal (62 yo)

6.83yrs

Tenure

Mr. Hari Krishna Agarwal serves as Additional Director of Grasim Industries Limited and serves as its Managing Director since December 1, 2021. Mr. Agarwal served as Chief Operating Officer of Thai Rayon P...


Leadership Team

Experienced Management: GRASIM's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: GRASIM's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GRASIM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Grasim Industries Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Grasim Industries Limited
  • Ticker: GRASIM
  • Exchange: NSEI
  • Founded: 1947
  • Industry: Construction Materials
  • Sector: Materials
  • Implied Market Cap: ₹869.345b
  • Shares outstanding: 656.98m
  • Website: https://www.grasim.com

Number of Employees


Location

  • Grasim Industries Limited
  • Aditya Birla Centre
  • ‘A’ Wing, 2nd Floor
  • Mumbai
  • Maharashtra
  • 400030
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.