Buy Grasim Industries with a target at Rs 4,700: Deutsche Bank

Deutsche Bank maintains buy rating on Grasim Industries post March quarter results but raised its 12-month target price to Rs 4700 from Rs 4650 earlier.

The strong performance by pulp JVs, Chemicals business resulted in operational earnings beat. Rising global VSF industry utilization and upcoming chemical expansion augurs well for the company, said the global investment bank.

The Chemicals business profits in the medium-term are likely to be driven by upcoming capacity expansions. Grasim remains one of the top infra conglomerate pick in DB list. However, lower than expected cement and VSF price still remains key risk.