Buy Grasim Industries with a target at Rs 5,450: Citigroup

Citigroup maintains buy rating on Grasim Industries with a 12-month target price of Rs 5,450. The Cement business benefited from better costs and volumes, said the global investment bank.

It expects the fibre market to be volatile in 2016 on high cotton stocks, cheap polyester fibre. Citi holds a positive view on cement and believes that the company is past the trough for VSF. Grasim trades at a 40 per cent discount to UltraTech Cement's cement business.