Neutral on Grasim Industries, target price Rs 1590: Motilal Oswal

Motilal Oswal has neutral call on Grasim Industries with a target price of Rs 1590. The current market price of Grasim Industries Ltd. is Rs 1503.25 Time period given by analyst is one year when Grasim Industries Ltd. price can reach defined target.

Grasim Industries Ltd., incorporated in the year 1947, is a Large Cap company (having a market cap of Rs 98507.67 Crore) operating in Diversified sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 20189.29 Crore, down -17.69 % from last quarter Total Income of Rs 24529.53 Crore and up 44.23 % from last year same quarter Total Income of Rs 13997.90 Crore. Company reported net profit after tax of Rs 2311.26 Crore in latest quarter.


Investment Rationale
The brokerage raises FY22E/FY23E standalone EBITDA by 18%/6% to factor in an improved demand outlook and better margin for both the VSF and Chemicals. The holding company discount of 46% is in line with its 10-year average of 48%.

Promoter/FII Holdings
Promoters held 42.1 per cent stake in the company as of June 30, 2021, while FIIs held 15.3 per cent, DIIs 16 per cent and public and others 26.6 per cent.