Overweight Grasim Industries, target Rs 1196 : Morgan Stanley

Morgan Stanley has an overweight call on Grasim Industries Ltd. with a target price of Rs 1196 .The current market price of Grasim Industries Ltd. is Rs 974.05 Time period given by the brokerage firm is a year when Grasim Industries Ltd. price can reach the defined target. The September quarter was a good quarter for Grasim with business momentum remaining strong, said the brokerage note. The key surprise was higher-than-expected volumes in chemicals businesses. The net profit of 11 per cent in Q2 was ahead of estimate, helped by higher-than-expected other income. The margins were below the estimate of 22.3 per cent from lower-than-expected margins in both VSF and chemical business. The company is likely to benefit from ongoing expansion in chemical business on the volume side, said the Morgan Stanley note.