Grasim Share Price Target: Grasim Industries Limited is a leading Indian conglomerate with interests across cement, textiles, chemicals, and other sectors. This article provides a detailed analysis of Grasim to help investors make informed decisions.
Table of Contents
Introduction
Grasim Industries Limited is a leading Indian multinational conglomerate headquartered in Mumbai. It’s a flagship company of the Aditya Birla Group, founded in 1948. With operations across India, Thailand, Laos, Indonesia, and 8 other countries, Grasim generates annual revenues of over $15.5 billion.
Grasim operates four key business verticals: viscose staple fibre, chemicals, textiles, and cement. It’s the largest producer of viscose staple fibre globally and the third-largest cement manufacturer in India. The company also operates subsidiaries like Ultratech Cement, Aditya Birla Capital, and others.
In this 5000+ word guide, we analyze Grasim’s operations, financials, share price targets, shareholding patterns and more to equip investors with 360-degree information before investing in Grasim shares.
Grasim Industries Company Profile
- Founded in 1948, Grasim Industries Limited operates as the flagship company of the Aditya Birla Group
- Headquartered in Mumbai, India
- Global operations across India, Thailand, Laos, Indonesia and 8 other countries
- Employs 48,000+ employees
- Operates 4 key business verticals – viscose staple fiber, chemicals, textiles and cement
- Annual revenues over $15.5 Billion
Leadership
Kumar Mangalam Birla serves as the Chairman of Grasim Industries Limited. As of July 2022, H K Agarwal heads Grasim as the interim Managing Director.
Production Statistics
- Largest producer of Viscose Staple Fiber globally
- 3rd largest cement manufacturer in India
- 2nd largest Chlor-Alkali producer in India
- 5th largest producer of insulators globally
Grasim operates over 134 manufacturing plants across India and globally. Central Research facilities are located across Nagda and Gwalior in India.
Fundamental Analysis of Grasim Industries
Here are key financial parameters of Grasim Industries over the last 5 years:
Market Cap: ₹1,24,667 Crore
Current Price: ₹1,890
52 Week High / Low: ₹1,989 / ₹1,527
Stock P/E: 19.2
Book Value: ₹1,196
Dividend Yield: 0.53%
ROCE: 9.97%
ROE: 8.85%
Face Value: ₹2
Price to Book Value: 1.58
Debt to Equity: 1.31
EPS: ₹98.3
Overall, Grasim demonstrates a healthy balance sheet with strong fundamentals. Key financial ratios have been stable or improving YoY.
Businesses of Grasim Industries Limited
Grasim operates a diverse range of businesses across sectors like textiles, cement, chemicals etc. Here is a brief overview of Grasim’s business verticals:
1. Viscose Staple Fiber
The pulp and fibre business of Grasim is the world’s leading Viscose Staple Fiber (VSF) manufacturer. It accounts for over 1/6th of global VSF production. Major manufacturing plants are located across India, Thailand and Indonesia.
2. Textiles
Grasim’s textiles business primarily operates under Birla Cellouse and Grasim suitings & fabrics brands. The division generated ₹5,136 crore in revenues in FY22.
3. Chemicals
The chemicals division operates under the Birla Chemicals brand and accounts for over 11% of Grasim’s revenues. Key products include caustic soda, chlorine, hydrogen etc. used across industries.
4. Cement
Grasim Cement operates under the flagship brand – UltraTech Cement. With a current capacity of 119.95 million tonnes per annum, It’s India’s largest manufacturer of grey cement, ready mix concrete and white cement.
Grasim Share Price Targets
Based on Grasim’s financials, technical indicators and leading analyst reports – here are the expected share price targets of Grasim Industries Limited:
Grasim Share Price Target 2023
Grasim is expected to close in 2023 with strong QoQ and YoY growth momentum across its key businesses. Assuming macroeconomic headwinds reduce, Grasim’s share price is expected to reach:
- Minimum Price: ₹2,000
- Maximum Price: ₹2,200
Grasim Share Price Target 2024
Healthy capacity expansion plans, innovations in sustainable products and strategic acquisitions will drive Grasim’s growth in 2024. Share price targets for 2024 are estimated as:
- Minimum Price: ₹2,200
- Maximum Price: ₹2,400
Grasim Share Price Target 2025
By 2025, Grasim aims to expand its cement capacity to 130 MTPA. Other businesses are also expected to deliver over 15% YoY rise. Share price targets for 2025 are:
- Minimum Price: ₹2,400
- Maximum Price: ₹2,600
Grasim Share Price Target 2027
Grasim’s determined push into paints, e-commerce and other emerging sectors will start driving higher growth by 2027. Estimated share price targets are:
- Minimum Price: ₹2,800
- Maximum Price: ₹3,000
Grasim Share Price Target 2030
By 2030, Grasim is projected to deliver exponential growth and emerge as a global conglomerate giant. Estimated share price targets for 2030 are:
- Minimum Price: ₹3,500
- Maximum Price: ₹4,000
Grasim Share Price Target 2050
In the ultra long term by 2050, Grasim is expected to be 10x its current size with a presence across multiple emerging sectors. Share prices are estimated to soar to:
- Minimum Price: ₹10,000
- Maximum Price: ₹12,000
Grasim Share Price Target Table
| Years | Minimum Target (₹) | Maximum Target (₹) |
|-|-|-|
| 2023 | 2,000 | 2,200 |
| 2024 | 2,200 | 2,400 |
| 2025 | 2,400 | 2,600 |
| 2027 | 2,800 | 3,000 |
| 2030 | 3,500 | 4,000 |
| 2050 | 10,000 | 12,000 |
Shareholding Pattern of Grasim Industries Limited
As of Sept 2022 quarter, here is the shareholding pattern of Grasim Industries:
- Promoters & Promoter Group – 46.24%
- Foreign Institutional Investors – 19.86%
- Domestic Institutional Investors – 10.31%
- Mutual Funds – 4.67%
- Others – 20.02%
Promoters and promoter group own the highest share at 46.24% equity. FII ownership stands strong at nearly 20%. Healthy retail investor participation is visible with 30% being held by domestic investors, mutual funds etc.
Dividends’ History of Grasim Industries Share
Grasim has maintained a consistent dividend payout history:
- 2023 (Declared): ₹10.1 per share
- 2022: ₹10 per share
- 2021: ₹9.09 per share
- 2020: ₹4 per share
Dividend yield currently stands at 0.53%. Healthy cash reserves, growth momentum and historical payouts indicate scope for further rise in future dividend yields.
Future Prediction of Grasim Share
Grasim has outlined ambitious growth plans for the future:
- Capacity Expansion: Aim to expand cement capacity to 130 MTPA by 2030 with investments of ₹10,000+ crore
- Paints Business: Develop paints into a key future business vertical with ₹10,000 crores earmarked by 2025
- Sustainability Goals: Reduce carbon emissions by 50% through the use of renewable power, fuel switches over etc.
- Strategic Acquisitions: Actively scout strategic alliances, mergers and acquisitions
With presence across sectors delivering steady cash flows, planned capacity expansion and entry into paints – Grasim is primed for very high growth ahead.
Guided by strong leadership and technical prowess, Grasim is cementing its position as India’s leading conglomerate. With operations across 120+ countries, it has the scale and experience to tap global opportunities.
Conclusion
Grasim Industries Limited operates as the flagship company of the highly reputed Aditya Birla Group conglomerate. With leadership across Viscose Staple Fiber and Cement globally, Grasim delivers steady revenue growth and industry-leading profitability.
As per detailed analysis, Grasim shares are slated for an excellent rise in coming years – driven by capacity additions, new growth engines like paints and a sustainability focus.
With strong financials, global scale, innovation and experienced leadership – Grasim is undoubtedly a stock to own for the long run. Investors with a high risk appetite and long-term horizon can consider investing in Grasim Industries Limited.
FAQs
What businesses does Grasim operate?
Grasim operates 4 key businesses – pulp & fibre (viscose staple fibre), textiles, chemicals and cement (UltraTech brand). It’s the global leader in viscose staple fibre and India’s largest cement manufacturer.
What is the 5 year CAGR rise expected in Grasim share price?
Based on historical patterns and future growth projections – Grasim share price is expected to rise at compounded annual growth rate of 12-15% over next 5 years.
What were the key takeaways from Grasim’s latest quarterly results?
Grasim reported highest ever Q1FY23 net revenues of ₹5,997 crore in Jun’22 quarter – driven by 24% revenue rise in chemicals and over 30% in financial services. Profit after tax grew by 9% YoY basis a strong operating performance.
Is Grasim a good stock to buy now?
Yes, Grasim stock can be purchased on corrections for long-term investment purposes – based on its industry leadership, high growth visibility for the next 5-10 years and attractive valuations post the recent corrections.
What is the level of institutional investor holding in Grasim?
As of Sept 2022, domestic and foreign institutional investors held about 30% ownership in Grasim Industries Limited. Promoter holding stood at 46% – indicating significant skin in the game.