[Infographics] Grasim Industries Stock | 8 Reliable Fundamental Factors To Learn About Grasim Industries Stock

Grasim Industries Ltd is among the best companies in Aditya Birla Group. It ranks in India’s largest private sector companies. Grasim Industries core business consists of viscose Staple fiber (VSF), caustic soda, specialty chemicals, rayon-grade wood pulp (RGWP) with plants at multiple locations. This company has certain other businesses such as fertilizer, textile, etc.

Sector: Materials (Cement)

Large Capital: 115117 Crores

Key takeaway

Revenue sources

  • Ultratech Cement (54%)
  • Financial Services (22%)
  • Viscous vertical (12%)
  • Chemical Vertical (7%)
  • Other business (5%)

Cement Vertical (Ultratech)

Grasim Industries Ltd is holding Ultratech Cement Ltd which is again a flagship company in the Aditya Birla group. Ultratech is largest manufacturer of gray cement, ready mix concrete, and white cement in India. . The company has a consolidated capacity of 116.75 Million Tons Per Annum (MTPA) of grey cement. It has 23 integrated plants, 1 clinkerisation plant, 26 grinding units, and 7 bulk terminals. Its operations span across India, UAE, Bahrain, and Sri Lanka. 

Financial Services Vertical (A.B. Capital)

Grasim Industries is the main promoter of Aditya Birla Capital Ltd which is a financial company in the group. It has a strong presence across investing and financing solutions with a presence in Housing finance, insurance, broking, private equity, insurance advisory, etc. It has a pan-India presence with a network of 850+ branches, 200,000+ agents and channel partners, & a tie-up with 90 banks. 

Viscose Vertical

Grasim Industries is the biggest producer of Viscose Staple Fiber(VSF) in India.
It derives 90% of its revenues from the local market and the rest 10% revenue comes from exports.
The company also entered the Viscose Filament Yarn (VFY) segment following the merger with Aditya Birla Nuvo Ltd in 2017 and the acquisition of rights to manage the Rayon division of Century Textiles. Presently, it is the largest exporter of VFY in India.  The current manufacturing capacities of the segment stand at 48 KTPA. 

Chemicals Vertical

Grasim Industries is India’s largest caustic soda producer and is a market leader in the chlor-alkali segment. In 2016, its caustic soda capacity increased by 95% post its merger with its sister company Aditya Birla Chemicals Ltd. Presently, it operates 8 manufacturing units of caustic soda with capacities of 1,147 KTPA of caustic soda & 123 KTPA of the epoxy plant.  Presently, its capacity utilization rates stand at ~90% in its caustic soda production facilities. 

Other Businesses

 Textiles – Company set up Jaya Shree Textiles in 1949 which to today’s date is one of the leading linen and wool manufacturers in India. It sells its products in over 50 countries across 6 continents. 

Insulators – The company is India’s largest and the world’s 4th largest manufacturer of electric insulators. It produces the widest range of insulators in India including insulators for transmission lines & substations up to 1200 kV voltage level, as well as equipment & railways. It owns 2 manufacturing facilities in Gujarat & West Bengal with a manufacturing capacity of ~55 KTPA of insulators. 

Fertilizers – The company was a leading agri-solutions provider to the agro-industry in India but recently it decided to divest its interest in its fertilizers business. 

Foray into Paints Business

Recently, the company announced that it has decided to enter the paint industry by incurring an expenditure of about 5,000 crores over the next 3 years.

Grasim Industries Today 

GRASIM INDUSTRIES
GRASIM.NS
₹ 1,662.45
-1.28%
Marketcap
1.09T
Volume
₹ 1,643,394.00
Shares
658,225,024
Range
₹ 1,650.30 - ₹ 1,709.65
52 Week Range
₹ 862.15 - ₹ 1,893.00
GRASIM INDUSTRIES
sector
Basic Materials
industryBuilding Materials
addressAditya Birla Centre, Mumbai, India
countryIndia
phone91 22 6652 5000
websitehttp://www.grasim.com
GRASIM INDUSTRIES
₹ 1,662.45
Open ₹ 1,680.00
High ₹ 1,709.65
Marketcap 1.09T
Close ₹ 1,662.45
Low ₹ 1,650.30
Volume ₹ 1,643,394.00

Grasim Industries Today 

Grasim Industries index presence 

NIFTY50NIFTYEQWGTALLCAP
NIFTY100BSE100MFG
NIFTY200BSE200S&PDIVSTABLE
NIFTY100WEIGHTBSE500LOM250
NIFTY500VAL50GREENEXBASE100LARGECAPTMC
NIFTYADITYACARBONEXNIFTYLGEMID250
NIFTYCDTYBASMTRLRGCAP
NIFTYINFRASTS&P LARGEMIDCAP

Grasim Industries Infographics

Grasim industries infographics
Grasim industries infographics by Kamlesh Rode, created in figma.com

Overview of Grasim Industries

Grasim industries infographics overview

Key Takeaway

  • Current price of Grasim Industries stock is lower than Intrinsic value.
  • Grasim industries stock offered lower return than fixed-deposites
  • This stock did not offered good dividend returns in past.
  • Grasim industries stocks does not come in ASM/GSM list. No red flags.

Key Metrics

PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
26.7425.561.123.270.51%1.46%

Key Takeaway

  • Grasim industries stock have good PE ratio more than 26, which is great for investment decisions.
  • Sector PE is more than 25.
  • PB ratio is 1.12 and Sector PB ratio is more than 3 for Grasim Industries stock.
  • Dividend yield is not too good for Grasim Industries stock.

Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics

Financials of Grasim Industries

Grasim industries financial

Income statement of Grasim Industries

Financial YearFY 2018FY 2019FY 2020FY 2021
Total Revenue57,024.0278,057.0076,734.4677,876.45
EBITDA12,022.2714,794.8717,448.8019,765.77
PBIT9,297.9111,223.4913,444.5715,732.37
PBT5,634.745,163.466,554.2610,008.89
Net Income2,678.581,692.994,411.744,304.82
EPS43.6325.7567.0865.43
DPS6.2749
Payout ratio0.140.270.060.14
*EPS and DPS in ₹. Other numbers except for Payout Ratio in ₹ crores

Key Takeaway

Income Statement

Higher than Industry Revenue Growth

Over the last 5 years, revenue has grown at a yearly rate of 17.12%, vs industry avg of 12.46%

Lower than Industry Net Income

Over the last 5 years, net income has grown at a yearly rate of 11.77%, vs industry avg of 19%

Increasing Market Share

Over the last 5 years, market share increased from 23.21% to 35.8%

A balance sheet of Adani Ports

Financial YearFY 2018FY 2019FY 2020FY 2021
Current Assets40,309.1649,880.5751,445.3857,458.55
Non Current Assets1,67,589.501,91,246.411,92,736.062,09,392.32
Total Assets2,07,898.662,41,126.982,44,181.442,66,850.87
Current Liabilities42,521.9648,765.4546,618.9552,009.90
Non Current Liabilities81,621.751,03,770.271,06,614.171,12,268.13
Total Liabilities1,24,143.711,52,535.721,53,233.121,64,278.03
Total Equity83,754.9588,591.2690,948.321,02,572.84
Total Liabilities & Shareholder’s Equity2,07,898.662,41,126.982,44,181.442,66,850.87
Total Common Shares Outstanding65.7465.7665.7865.81
Shares outstanding numbers in cr. Other numbers in ₹ crores

Key Takeaway

Higher than Industry Debt to Equity Ratio

Over the last 5 years, the debt to equity ratio has been 73.34%, vs industry avg of 60.11%

Higher than Industry Current Ratio

Over the last 5 years, the current ratio has been 117.16%, vs industry avg of 111.29%

Cash Flow statement of Grasim industries

Financial YearFY 2018FY 2019FY 2020FY 2021
Net Change in Cash855.5287.041,838.33-446.32
Changes in Working Capital-14,596.17-15,941.861,997.09-4,598.64
Capital Expenditures3,288.714,178.955,076.833,651.04
Free Cash Flow-7,428.61-5,837.5311,543.4711,049.84

Key Takeaway

Higher than Industry Free Cash Flow Growth

Over the last 5 years, free cash flow growth has been 28.99%, vs an industry avg of 23.49%

Peers of Grasim Industries

Grasim industries infographics peers
StockPE RatioPB RatioDividend Yield
Grasim Industries Ltd26.741.120.51%
UltraTech Cement Ltd39.054.830.50%
Shree Cement Ltd44.136.530.21%
Ambuja Cements Ltd34.312.794.40%

Key Takeaway

  • Grasim industries does not have good PE ratio then peers.
  • Grasim industries have PB ratio of 1 and it is lower than its peer.
  • Adani Port do not offer good dividend yield so it is very less than peer, just 0.51%

Shareholders of Grasim Industries

grasim industries infographics shareholding

Promoter Holdings Trend

Institutional Holdings Trend

Total Promoter Holding

In last 6 months, promoter holding in the company has almost stayed constant

Low Pledged Promoter Holding

Pledged promoter holdings are insignificant

Mutual Fund Holding

In the last 3 months, the mutual fund holding of the company has almost stayed constant

Foreign Institutional Holding

In the last 3 months, foreign institutional holding of the company has almost stayed constant

InvestorsSep-18Dec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21
Promoters 40.0940.1640.1540.1540.1540.1140.2640.2640.9241.4241.8342.09
FIIs 23.5121.162018.2616.9715.9813.5212.6612.5512.9614.4415.1
DIIs 16.6917.7818.6721.0822.1322.6422.8621.3720.2618.4216.8115.99
Public 19.7120.720.9720.320.5421.0623.1525.526.0726.9926.7226.62
Others 00.20.20.210.210.210.210.210.210.210.20.2
All Values are in Percentage(%)

Key Takeaway

  • The promotors are contastently kept on increasing their stakes in Grasim Industries. They have kept more than 42% investment in this stock
  • FIIs(Foreign Institutional Investors) limited their stakes in Grasim Industries by 15% compared to year 2018
  • Domestic institutional investors (DIIs) decreases their investments 16% to 15% in the year 2021.
  • Whereas Public have increase their investment to 26%.

Dividend and Split

grasim industries infographics dividend

Dividends Table

Cash DividendDividend/ShareEx Date
Final₹5.0012-Aug-21
Cash DividendDividend/ShareEx Date
Special₹4.0012-Aug-21
Cash DividendDividend/ShareEx Date
Final₹4.0026-Aug-20
Cash DividendDividend/ShareEx Date
Final₹7.008-Aug-19
Cash DividendDividend/ShareEx Date
Final₹6.2031-Aug-18

Dividend Trend

No Trend In Dividends

GRASIM has shown an inconsistent dividend trend over the last 5 years

Dividend Yield

The current dividend yield is 0.51%. An investment of ₹1,000 in the stock is expected to generate a dividend of ₹5.14 every year

Key Takeaway

  • Grasim industries company gave regular dividend from last 4 years.
  • Maximum dividend of Rs.7 given by Grasim industries this year 2021.

Bonus/Split Table

DemergerRatioEx Date
19-Jul-17
Share SplitRatioEx Date
Face Value Change from 10 To 21:056-Oct-16

Key Takeaway

  • Grasim industries company gave stock split 1:5 ratio in the year 2016

Read more about dividend and dividend yield with infographics | Stock split with infographics

Strength & Limitations

Strengths

  • Company is virtually debt free.
  • The company has an efficient Cash Conversion Cycle of 28.13 days.
  • The company has a good cash flow management; CFO/PAT stands at 2.40.

Limitations

  • The company has shown a poor profit growth of -20.02% for the Past 3 years.
  • The company has shown a poor revenue growth of -2.47% for the Past 3 years.
  • Company has a poor ROE of 2.22% over the past 3 years.
  • Company has a poor ROCE of 3.29% over the past 3 years
  • The company is trading at a high PE of 72.

Expert Forecast of Grasim Industries

Grasim industries infographics expert forecast

High

₹1974

Median

₹1628

Low

₹586

Future stock price targets of Grasim Industries stock

Target of Grasim IndustriesFuture Stock Price
20221900 to 2200
20253500 to 3800
20304800 to 5000
20356500 to 7200
20409000 to 11000

Please Note

These stock forecast or stock predictions solely based on historical data and related estimates by industry experts. Please do take advice from certified people and then go for investment.

Here predictions are just data for your information. We here declare that the stock forecast team does not responsible for any price changes or the price does not go expected. At last, it is solely based on how the stock market is running at that certain conditions.

Stock Forecast Predictions

Grasim industries infographics stock forecast

Grasim Industries stock is doing exceptionally well in terms of ratios.

This stock had a CAGR of more than 26% from the last 5 year and upto the mark for delivering in ratios.

Earnings per share (EPS) is 24.33

The price-to-earnings ratio is more than 72 from the last 5 years.

What if I invest in 10 stocks for the upcoming years? You will be happy by the return showing in the image above

These are future investment values are calculated based on a CAGR(Compound Annual Growth Rate) of 26%.

If this stock keeps CAGR average value for upcoming years, then look at the huge numbers

For my investment of Rs. 17520(10 Grasim industries stocks)

For the first year, I will be getting more than 20 Thousands

For the next 5 years, the Investment will be more than 55 Thousands

then for the next 10 years, the investment will touch more than 1.5L.

For the next 15 years, more than 5 Lacs will be the investment value.

and in the next 20 years, the investment will touch more than 18 Lacs.

Look at after 25 years number, they are huge. More than 57 L.

You must be laughing but CAGR with compounding giving this amazing result.

Read How Rs.10,000 converted into 1770 Crores Wipro case study?

Conclusion

Grasim Industries Ltd is among the best companies in Aditya Birla Group. It ranks in India’s largest private sector companies. If we overall look at Grasim Industries in terms of ratios, it is a wonderful opportunity for new investors. No doubt this stock will be multibagger in future. We highely recommond this stock.

Frequently Asked Questions

Que: Is Grasim Industries a good buy?

Ans: Grasim industries have Quality Earnings: GRASIM has high quality earnings. Growing Profit Margin: GRASIM’s current net profit margins (6.6%) are higher than last year (4.8%). It have high potential of growth in future. It is a best buy.

Que: Is Grasim owned by Aditya Birla?

Ans: The company is a subsidiary of Aditya Birla Group. Grasim is the world’s largest producer of viscose rayon fiber with about 24% market share. Grasim Industries Ltd is among the best companies in Aditya Birla Group.

Que: Is Grasim good for long term?

Ans: Grasim industries have Quality Earnings: GRASIM has high quality earnings. Growing Profit Margin: GRASIM’s current net profit margins (6.6%) are higher than last year (4.8%). It have high potential of growth in future. It is a best buy.

Que: What does Grasim company do?

Ans: It is a leading global producer of Viscose Staple Fibre, the largest Chlor-Alkali, Linen and Insulators player in India. Through its subsidiaries, UltraTech Cement and Aditya Birla Capital, it is also India’s largest cement producer and a leading diversified financial services player.

Que: Is Grasim undervalued?

Ans: Yes GRASIM is currently undervalued, it may be a great time to accumulate more of your holdings in the stock.

Que: Is Grasim large cap company?

Ans: Grasim Industries Ltd., incorporated in the year 1947, is a Large Cap company (having a market cap of Rs 105154.26 Crore) operating in Diversified sector.

Que: In which sectoral index Grasim Industries come?

Ans: This company belongs to Material sector (Cement). It comes in Nifty 50, Nifty100, Nifty200, Nifty500 and Manufacturing sector in the index.

Que: Who is the owner of Grasim?

Ans: The Aditya birla is the Owner of Grasim industries. This company comes in Aditya Birla group.

Que: Does Grasim own UltraTech?

Ans: Grasim is the parent company of UltraTech Cement and owns the UltraTech brand. Global giant Holcim runs its cement firms ACC and Ambuja Cement independently. In fact, these two companies which jointly form India s largest cement producing block compete with each other in the market place.

Que: Which sector is Grasim?

Ans: This company belongs to Material sector (Cement). It comes in Nifty 50, Nifty100, Nifty200, Nifty500 and Manufacturing sector in the index.

Why Stock forecast by Kamlesh Rode?

5/5 - (1 vote)
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