Fundamental Analysis of Grasim Industries Ltd

About the Company - Grasim Industries Ltd

Grasim Industries Ltd. is a Public Limited Listed company incorporated on 25/08/1947 and has its registered office in the State of Madhya Pradesh, India. Company’s Corporate Identification Number(CIN) is L17124MP1947PLC000410 and registration number is 000410. Currently Company is involved in the business activities of Manufacture of synthetic or artificial filament staple fibre not textured. Company’s Total Operating Revenue is Rs. 20856.84 Cr. and Equity Capital is Rs. 131.66 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Cement	Staple Fibre Division & Grasim Chemical Division: P.O. Birlagram, Nagda Madhya Pradesh 456331	grasim.secretarial@adityabirla.com http://www.grasim.com

Management
Name	Position Held
Mr. Kumar Mangalam Birla	Chairman & Non-Exe.Director
Mr. Harikrishna Agarwal	Managing Director
Mrs. Rajashree Birla	Non Executive Director
Dr. Santrupt Misra	Non Executive Director
Mr. Raj Kumar	Non Executive Director
Mr. Cyril Shroff	Independent Director
Dr. Thomas M Connelly Jr	Independent Director
Ms. Anita Ramachandran	Independent Director
Mr. N Mohan Raj	Independent Director
Mrs. V Chandrasekaran	Independent Director
Mr. N Mohanraj	Independent Director
Mr. Adesh Kumar Gupta	Independent Director
Ms. Ananyashree Birla	Non Executive Director
Mr. Aryaman Vikram Birla	Non Executive Director
Mr. Yazdi Piroj Dandiwala	Independent Director

Basic Stock Data of Grasim Industries Ltd

Last Updated: July 6, 2024, 12:07 pm

Market Cap	1,80,950 Cr.
Current Price	2,748
High / Low	2,770/1,726
Stock P/E	30.9
Book Value	1,346
Dividend Yield	0.36 %
ROCE	9.38 %
ROE	7.00 %
Face Value	2.00
PEG Ratio	3.66

Grasim Industries Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	21,000	24,401	19,919	22,567	24,402	28,811	28,042	27,486	28,638	33,462	31,065	30,221	31,965
Expenses	15,925	18,501	14,596	17,672	19,531	23,470	22,059	22,894	23,775	27,332	24,708	24,173	25,073
Operating Profit	5,075	5,901	5,323	4,896	4,871	5,341	5,983	4,591	4,863	6,131	6,357	6,048	6,893
OPM %	24%	24%	27%	22%	20%	19%	21%	17%	17%	18%	20%	20%	22%
Other Income	433	166	442	394	231	581	221	254	2,972	308	296	285	256
Interest	1,371	1,343	1,266	1,176	1,146	1,188	1,246	1,373	1,608	1,816	2,032	2,226	2,433
Depreciation	1,007	1,043	991	1,017	1,026	1,128	1,089	1,116	1,139	1,207	1,183	1,245	1,244
Profit before tax	3,130	3,681	3,508	3,097	2,931	3,606	3,869	2,356	5,087	3,415	3,438	2,862	3,472
Tax %	31%	29%	30%	34%	9%	-13%	29%	36%	12%	31%	25%	29%	25%
Net Profit	2,157	2,617	2,448	2,032	2,655	4,070	2,759	1,509	4,455	2,356	2,576	2,024	2,603
EPS in Rs	20.42	25.22	24.52	19.98	25.66	40.82	28.42	14.83	36.97	20.12	23.17	17.10	22.25

Last Updated: June 7, 2024, 8:11 am

Grasim Industries Ltd Quarterly Chart

Grasim Industries Ltd Profit & Loss

Last Updated: June 3, 2024, 3:29 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	25,245	27,909	28,331	31,734	34,487	36,068	55,894	77,200	68,252	76,404	95,701	117,627	123,386
Expenses	19,666	21,986	23,416	26,590	28,576	28,682	44,281	60,560	57,880	57,769	75,270	96,038	99,988
Operating Profit	5,579	5,924	4,915	5,144	5,911	7,387	11,612	16,640	10,373	18,635	20,431	21,589	23,398
OPM %	22%	21%	17%	16%	17%	20%	21%	22%	15%	24%	21%	18%	19%
Other Income	742	824	576	530	1,320	1,076	410	-1,846	7,076	1,130	1,648	3,733	3,860
Interest	314	324	447	667	718	702	3,663	6,060	6,890	5,723	4,776	6,044	7,682
Depreciation	1,154	1,252	1,457	1,563	1,834	1,808	2,724	3,571	4,004	4,033	4,161	4,552	4,774
Profit before tax	4,852	5,171	3,586	3,443	4,679	5,952	5,635	5,163	6,554	10,009	13,143	14,727	14,801
Tax %	27%	28%	20%	30%	26%	29%	35%	47%	-1%	30%	15%	25%
Net Profit	3,595	3,778	2,954	2,582	3,455	4,246	3,688	2,745	6,639	6,987	11,206	11,078	11,411
EPS in Rs	57.74	58.92	45.13	37.95	52.91	67.85	40.75	25.75	67.07	65.42	114.69	103.69	100.61
Dividend Payout %	8%	8%	9%	9%	9%	8%	15%	27%	6%	14%	9%	10%

Grasim Industries Ltd Profit & Loss Yearly Chart

Grasim Industries Ltd Growth

Compounded Sales Growth
10 Years:	17%
5 Years:	11%
3 Years:	20%
TTM:	11%

Compounded Profit Growth
10 Years:	12%
5 Years:	18%
3 Years:	10%
TTM:	-14%

Stock Price CAGR
10 Years:	18%
5 Years:	24%
3 Years:	23%
1 Year:	56%

Return on Equity
10 Years:	8%
5 Years:	8%
3 Years:	9%
Last Year:	7%

Last Updated: July 2, 2024, 4:57 pm

Grasim Industries Ltd Balance Sheet

Last Updated: June 3, 2024, 3:29 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	92	92	92	92	93	93	131	132	132	132	132	132	132
Reserves	16,935	19,565	21,523	23,048	27,336	31,294	57,230	57,888	56,501	65,362	75,567	78,610	83,039
Preference Capital	19	0	0	0	0	0	56	69	11	11	11	11
Borrowings	7,038	9,550	9,681	11,930	12,505	9,213	67,014	84,418	84,766	79,067	74,733	103,027	121,928
Other Liabilities	12,466	14,916	16,441	18,963	19,642	22,147	83,523	98,689	102,783	122,788	138,718	155,053	166,471
Total Liabilities	36,531	44,123	47,736	54,033	59,576	62,747	207,899	241,127	244,181	267,349	289,149	336,823	371,569
Fixed Assets	17,549	20,561	25,209	31,828	34,271	34,786	69,257	87,129	87,736	85,023	88,996	94,896	96,865
CWIP	2,461	6,084	4,045	2,755	1,788	1,297	2,290	2,766	3,904	5,769	6,615	7,778	12,765
Investments	7,876	8,011	7,611	7,255	10,601	14,200	65,995	62,747	66,337	88,017	96,766	105,355	81,865
Other Assets	8,645	9,467	10,872	12,194	12,916	12,464	70,356	88,484	86,204	88,540	96,771	128,793	180,075
Total Assets	36,531	44,123	47,736	54,033	59,576	62,747	207,899	241,127	244,181	267,349	289,149	336,823	371,569

Grasim Industries Ltd Reserves and Borrowings Chart

Grasim Industries Ltd Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity	4,350	4,242	3,549	4,594	5,868	7,288	-4,140	-1,659	16,620	15,075	7,038	-12,685
Cash from Investing Activity	-3,629	-5,687	-2,336	-2,359	-4,515	-3,509	1,546	-2,212	-11,364	-7,146	-1,053	-13,712
Cash from Financing Activity	-679	1,348	-1,046	-2,278	-1,365	-3,799	3,449	4,158	-3,418	-8,003	-6,733	26,469
Net Cash Flow	42	-97	168	-42	-11	-20	856	287	1,838	-75	-748	72

Grasim Industries Ltd Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	28	32	30	32	30	34	32	31	21	21	18	19
Inventory Days	221	209	207	168	163	170	154	179	179	200	180	194
Days Payable	169	160	102	97	117	146	133	172	229	239	216	221
Cash Conversion Cycle	80	82	136	103	76	58	53	38	-29	-18	-17	-7
Working Capital Days	4	21	-8	-19	-7	39	35	-18	17	14	33	108
ROCE %	15%	10%	9%	11%	13%	10%	8%	8%	9%	9%	10%

Grasim Industries Ltd Financial Efficiency Indicators Chart

Grasim Industries Ltd Share Holding Pattern

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Feb 2024
Promoters	42.09%	42.26%	42.54%	42.76%	42.76%	42.75%	42.75%	42.75%	42.75%	42.75%	42.75%	43.05%
FIIs	15.10%	14.96%	12.81%	12.71%	11.49%	12.03%	12.58%	12.45%	12.29%	12.17%	12.52%	12.43%
DIIs	15.99%	15.30%	14.71%	14.43%	15.35%	16.86%	16.48%	16.82%	16.82%	16.90%	16.70%	16.76%
Public	26.62%	27.23%	29.68%	29.87%	30.18%	28.06%	27.88%	27.69%	27.82%	27.80%	27.69%	27.39%
Others	0.20%	0.26%	0.25%	0.23%	0.22%	0.28%	0.31%	0.30%	0.30%	0.35%	0.33%	0.32%
No. of Shareholders	2,36,823	2,40,282	2,51,422	2,62,650	2,79,520	2,57,355	2,47,065	2,47,265	2,43,265	2,39,780	2,34,446	2,41,375

Grasim Industries Ltd Shareholding Pattern Chart

No. of Grasim Industries Ltd Shareholders

Grasim Industries Ltd Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
SBI Nifty 50 ETF	6,843,232	0.83	1291.11	955,908	2024-07-05	615.89%
Franklin India Flexi Cap Fund	1,720,000	2.72	324.51	955,908	2024-07-05	79.93%
ICICI Prudential Bluechip Fund	1,496,396	0.68	282.33	955,908	2024-07-05	56.54%
Kotak Equity Arbitrage Fund - Regular Plan	1,197,000	0.78	225.84	955,908	2024-07-05	25.22%
Tata Equity P/E Fund - Regular Plan	1,140,000	3.6	215.08	955,908	2024-07-05	19.26%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%	1,140,000	3.6	215.08	955,908	2024-07-05	19.26%
SBI Arbitrage Opportunities Fund	1,014,125	0.86	191.34	955,908	2024-07-05	6.09%
Nippon India Arbitrage Fund	961,875	1.6	181.48	955,908	2024-07-05	0.62%
ICICI Prudential Value Discovery Fund	955,908	0.56	180.35	955,908	2024-07-05	0%
Quant Tax Plan	945,000	3.6	178.29	955,908	2024-07-05	-1.14%

Grasim Industries Ltd ROCE Trend

Grasim Industries Ltd EPS Trend

Grasim Industries Ltd Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	2.00	2.00	2.00	2.00	2.00
Basic EPS (Rs.)	85.29	103.98	114.98	65.57	67.22
Diluted EPS (Rs.)	85.15	103.88	114.98	65.50	67.18
Cash EPS (Rs.)	223.47	234.22	227.66	164.59	153.25
Book Value[Excl.RevalReserv]/Share (Rs.)	2092.45	1866.80	1764.72	1558.52	1382.40
Book Value[Incl.RevalReserv]/Share (Rs.)	2092.45	1866.80	1764.72	1558.52	1382.40
Revenue From Operations / Share (Rs.)	1972.57	1786.56	1453.76	1160.97	1142.30
PBDIT / Share (Rs.)	313.80	382.76	322.84	299.08	277.13
PBIT / Share (Rs.)	238.48	313.63	259.63	237.78	216.26
PBT / Share (Rs.)	204.99	220.50	186.03	145.62	90.14
Net Profit / Share (Rs.)	148.15	165.09	164.45	103.30	92.37
NP After MI And SOA / Share (Rs.)	84.71	103.69	114.69	65.42	67.07
PBDIT Margin (%)	15.90	21.42	22.20	25.76	24.26
PBIT Margin (%)	12.08	17.55	17.85	20.48	18.93
PBT Margin (%)	10.39	12.34	12.79	12.54	7.89
Net Profit Margin (%)	7.51	9.24	11.31	8.89	8.08
NP After MI And SOA Margin (%)	4.29	5.80	7.88	5.63	5.87
Return on Networth / Equity (%)	6.34	8.67	9.97	6.57	7.79
Return on Capital Employeed (%)	4.94	7.71	7.38	7.27	7.19
Return On Assets (%)	1.36	2.02	2.60	1.61	1.80
Long Term Debt / Equity (X)	0.97	0.84	0.61	0.80	1.04
Total Debt / Equity (X)	1.52	1.29	0.96	0.95	1.25
Asset Turnover Ratio (%)	0.34	0.15	0.12	0.08	0.11
Current Ratio (X)	0.93	1.36	1.43	1.60	1.49
Quick Ratio (X)	0.78	1.20	1.27	1.48	1.35
Inventory Turnover Ratio (X)	1.82	2.49	2.61	1.62	2.19
Dividend Payout Ratio (NP) (%)	0.00	9.63	7.84	6.10	12.30
Dividend Payout Ratio (CP) (%)	0.00	5.77	5.05	3.14	6.45
Earning Retention Ratio (%)	0.00	90.37	92.16	93.90	87.70
Cash Earning Retention Ratio (%)	0.00	94.23	94.95	96.86	93.55
Interest Coverage Ratio (X)	12.59	4.17	4.45	3.44	2.65
Interest Coverage Ratio (Post Tax) (X)	7.29	2.81	3.17	2.21	2.08
Enterprise Value (Cr.)	332695.83	249289.17	219817.67	190182.63	132619.90
EV / Net Operating Revenue (X)	2.54	2.12	2.30	2.49	1.76
EV / EBITDA (X)	15.97	9.89	10.34	9.66	7.27
MarketCap / Net Operating Revenue (X)	1.16	0.91	1.15	1.25	0.41
Retention Ratios (%)	0.00	90.36	92.15	93.89	87.69
Price / BV (X)	1.71	1.37	1.45	1.46	0.55
Price / Net Operating Revenue (X)	1.16	0.91	1.15	1.25	0.41
EarningsYield	0.03	0.06	0.06	0.04	0.14

Grasim Industries Ltd Profitability Ratios (%)

Grasim Industries Ltd Liquidity Ratios

Grasim Industries Ltd Liquidity Ratios (%)

Grasim Industries Ltd Interest Coverage Ratios (%)

Grasim Industries Ltd Valuation Ratios

Fair Value

Fair Value: 2,921.88

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 6.33% compared to the current price 2748

Intrinsic Value: 3,168.73

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 15.31% compared to the current price ₹2748

Last 5 Year EPS CAGR: 8.45%

*Investments are subject to market risks

Strength and Weakness of Grasim Industries Ltd Stock

Strength	Weakness
The stock has a low average Working Capital Days of 18.25, which is a positive sign. The company has higher reserves (47,222.92 cr) compared to borrowings (14.46 cr), indicating strong financial stability. The company has shown consistent growth in sales (60.92 cr) and profit (7.00 cr) over the years.	The stock has a low average ROCE of 9.33%, which may not be favorable. The stock has a high average Cash Conversion Cycle of 46.25, which may not be favorable.

FAQ

What is the latest fair value of Grasim Industries Ltd?

The latest fair value of Grasim Industries Ltd is ₹2921.88.

What is the Market Cap of Grasim Industries Ltd?

The Market Cap of Grasim Industries Ltd is 1,80,950 Cr..

What is the current Stock Price of Grasim Industries Ltd as on 06 July 2024?

The current stock price of Grasim Industries Ltd as on 06 July 2024 is 2,748.

What is the High / Low of Grasim Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Grasim Industries Ltd stocks is 2,770/1,726.

What is the Stock P/E of Grasim Industries Ltd?

The Stock P/E of Grasim Industries Ltd is 30.9.

What is the Book Value of Grasim Industries Ltd?

The Book Value of Grasim Industries Ltd is 1,346.

What is the Dividend Yield of Grasim Industries Ltd?

The Dividend Yield of Grasim Industries Ltd is 0.36 %.

What is the ROCE of Grasim Industries Ltd?

The ROCE of Grasim Industries Ltd is 9.38 %.

What is the ROE of Grasim Industries Ltd?

The ROE of Grasim Industries Ltd is 7.00 %.

What is the Face Value of Grasim Industries Ltd?

The Face Value of Grasim Industries Ltd is 2.00.