Buy Grasim Industries, target Rs 5,750: CLSA
The management is focused on building its brand 'LIVA' which will help strengthen value chain under Liva Accredited Partner Forum (LAPF) program to increase use of VSF.
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| Updated: CLSA maintains buy on Grasim Industries with a 12-month target price of Rs 5,750. The company is likely to drive growth in Viscose Staple Fibre (VSF) segment, said the global investment bank. Grasim is India's pioneer in Viscose Staple Fibre (VSF), a man-made, biodegradable fibre with characteristics akin to cotton.
The management is focused on building its brand 'LIVA' which will help strengthen value chain under Liva Accredited Partner Forum (LAPF) program to increase use of VSF.
VSF volumes are expanding at 13 per cent CAGR over the past 4 years compared to 1-2 per cent in previous decade. The stock trades at 36 per cent discount to the underlying investments and has an attractive 1.4x PB multiple.
The management is focused on building its brand 'LIVA' which will help strengthen value chain under Liva Accredited Partner Forum (LAPF) program to increase use of VSF.
VSF volumes are expanding at 13 per cent CAGR over the past 4 years compared to 1-2 per cent in previous decade. The stock trades at 36 per cent discount to the underlying investments and has an attractive 1.4x PB multiple.
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