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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

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.
INDUSTRYADDRESSCONTACT
CementStaple Fibre Division & Grasim Chemical Division: P.O. Birlagram, Nagda Madhya Pradesh 456331grasim.secretarial@adityabirla.com
http://www.grasim.com
Management
NamePosition Held
Mr. Kumar Mangalam BirlaChairman & Non-Exe.Director
Mr. Harikrishna AgarwalManaging Director
Mrs. Rajashree BirlaNon Executive Director
Dr. Santrupt MisraNon Executive Director
Mr. Raj KumarNon Executive Director
Mr. Cyril ShroffIndependent Director
Dr. Thomas M Connelly JrIndependent Director
Ms. Anita RamachandranIndependent Director
Mr. N Mohan RajIndependent Director
Mrs. V ChandrasekaranIndependent Director
Mr. N MohanrajIndependent Director
Mr. Adesh Kumar GuptaIndependent Director
Ms. Ananyashree BirlaNon Executive Director
Mr. Aryaman Vikram BirlaNon Executive Director
Mr. Yazdi Piroj DandiwalaIndependent Director

Basic Stock Data of Grasim Industries Ltd

Last Updated: June 17, 2024, 8:32 pm

Market Cap 1,62,723 Cr.
Current Price 2,471
High / Low2,535/1,689
Stock P/E27.8
Book Value 1,346
Dividend Yield0.40 %
ROCE9.38 %
ROE7.00 %
Face Value 2.00
PEG Ratio3.29

Grasim Industries Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales21,00024,40119,91922,56724,40228,81128,04227,48628,63833,46231,06530,22131,965
Expenses15,92518,50114,59617,67219,53123,47022,05922,89423,77527,33224,70824,17325,073
Operating Profit5,0755,9015,3234,8964,8715,3415,9834,5914,8636,1316,3576,0486,893
OPM %24%24%27%22%20%19%21%17%17%18%20%20%22%
Other Income4331664423942315812212542,972308296285256
Interest1,3711,3431,2661,1761,1461,1881,2461,3731,6081,8162,0322,2262,433
Depreciation1,0071,0439911,0171,0261,1281,0891,1161,1391,2071,1831,2451,244
Profit before tax3,1303,6813,5083,0972,9313,6063,8692,3565,0873,4153,4382,8623,472
Tax %31%29%30%34%9%-13%29%36%12%31%25%29%25%
Net Profit2,1572,6172,4482,0322,6554,0702,7591,5094,4552,3562,5762,0242,603
EPS in Rs20.4225.2224.5219.9825.6640.8228.4214.8336.9720.1223.1717.1022.25

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

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales25,24527,90928,33131,73434,48736,06855,89477,20068,25276,40495,701117,627123,386
Expenses19,66621,98623,41626,59028,57628,68244,28160,56057,88057,76975,27096,03899,988
Operating Profit5,5795,9244,9155,1445,9117,38711,61216,64010,37318,63520,43121,58923,398
OPM %22%21%17%16%17%20%21%22%15%24%21%18%19%
Other Income7428245765301,3201,076410-1,8467,0761,1301,6483,7333,860
Interest3143244476677187023,6636,0606,8905,7234,7766,0447,682
Depreciation1,1541,2521,4571,5631,8341,8082,7243,5714,0044,0334,1614,5524,774
Profit before tax4,8525,1713,5863,4434,6795,9525,6355,1636,55410,00913,14314,72714,801
Tax %27%28%20%30%26%29%35%47%-1%30%15%25%
Net Profit3,5953,7782,9542,5823,4554,2463,6882,7456,6396,98711,20611,07811,411
EPS in Rs57.7458.9245.1337.9552.9167.8540.7525.7567.0765.42114.69103.69100.61
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:16%
5 Years:22%
3 Years:19%
1 Year:41%
Return on Equity
10 Years:8%
5 Years:8%
3 Years:9%
Last Year:7%

Last Updated: June 17, 2024, 3:02 pm

Grasim Industries Ltd Balance Sheet

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

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital929292929393131132132132132132132
Reserves16,93519,56521,52323,04827,33631,29457,23057,88856,50165,36275,56778,61083,039
Preference Capital1900000566911111111
Borrowings7,0389,5509,68111,93012,5059,21367,01484,41884,76679,06774,733103,027121,928
Other Liabilities12,46614,91616,44118,96319,64222,14783,52398,689102,783122,788138,718155,053166,471
Total Liabilities36,53144,12347,73654,03359,57662,747207,899241,127244,181267,349289,149336,823371,569
Fixed Assets17,54920,56125,20931,82834,27134,78669,25787,12987,73685,02388,99694,89696,865
CWIP2,4616,0844,0452,7551,7881,2972,2902,7663,9045,7696,6157,77812,765
Investments7,8768,0117,6117,25510,60114,20065,99562,74766,33788,01796,766105,35581,865
Other Assets8,6459,46710,87212,19412,91612,46470,35688,48486,20488,54096,771128,793180,075
Total Assets36,53144,12347,73654,03359,57662,747207,899241,127244,181267,349289,149336,823371,569

Grasim Industries Ltd Reserves and Borrowings Chart

Grasim Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4,3504,2423,5494,5945,8687,288-4,140-1,65916,62015,0757,038-12,685
Cash from Investing Activity -3,629-5,687-2,336-2,359-4,515-3,5091,546-2,212-11,364-7,146-1,053-13,712
Cash from Financing Activity -6791,348-1,046-2,278-1,365-3,7993,4494,158-3,418-8,003-6,73326,469
Net Cash Flow42-97168-42-11-208562871,838-75-74872

Grasim Industries Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days283230323034323121211819
Inventory Days221209207168163170154179179200180194
Days Payable16916010297117146133172229239216221
Cash Conversion Cycle808213610376585338-29-18-17-7
Working Capital Days421-8-19-73935-18171433108
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

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Feb 2024
Promoters42.09%42.26%42.54%42.76%42.76%42.75%42.75%42.75%42.75%42.75%42.75%43.05%
FIIs15.10%14.96%12.81%12.71%11.49%12.03%12.58%12.45%12.29%12.17%12.52%12.43%
DIIs15.99%15.30%14.71%14.43%15.35%16.86%16.48%16.82%16.82%16.90%16.70%16.76%
Public26.62%27.23%29.68%29.87%30.18%28.06%27.88%27.69%27.82%27.80%27.69%27.39%
Others0.20%0.26%0.25%0.23%0.22%0.28%0.31%0.30%0.30%0.35%0.33%0.32%
No. of Shareholders2,36,8232,40,2822,51,4222,62,6502,79,5202,57,3552,47,0652,47,2652,43,2652,39,7802,34,4462,41,375

Grasim Industries Ltd Shareholding Pattern Chart

No. of Grasim Industries Ltd Shareholders

Grasim Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF6,843,2320.831291.116,843,2322024-06-170%
Franklin India Flexi Cap Fund1,720,0002.72324.516,843,2322024-06-17-74.87%
ICICI Prudential Bluechip Fund1,496,3960.68282.336,843,2322024-06-17-78.13%
Kotak Equity Arbitrage Fund - Regular Plan1,197,0000.78225.846,843,2322024-06-17-82.51%
Tata Equity P/E Fund - Regular Plan1,140,0003.6215.086,843,2322024-06-17-83.34%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%1,140,0003.6215.086,843,2322024-06-17-83.34%
SBI Arbitrage Opportunities Fund1,014,1250.86191.346,843,2322024-06-17-85.18%
Nippon India Arbitrage Fund961,8751.6181.486,843,2322024-06-17-85.94%
ICICI Prudential Value Discovery Fund955,9080.56180.356,843,2322024-06-17-86.03%
Quant Tax Plan945,0003.6178.296,843,2322024-06-17-86.19%

Grasim Industries Ltd ROCE Trend

Grasim Industries Ltd EPS Trend

Grasim Industries Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)85.29103.98114.9865.5767.22
Diluted EPS (Rs.)85.15103.88114.9865.5067.18
Cash EPS (Rs.)223.47234.22227.66164.59153.25
Book Value[Excl.RevalReserv]/Share (Rs.)2092.451866.801764.721558.521382.40
Book Value[Incl.RevalReserv]/Share (Rs.)2092.451866.801764.721558.521382.40
Revenue From Operations / Share (Rs.)1972.571786.561453.761160.971142.30
PBDIT / Share (Rs.)313.80382.76322.84299.08277.13
PBIT / Share (Rs.)238.48313.63259.63237.78216.26
PBT / Share (Rs.)204.99220.50186.03145.6290.14
Net Profit / Share (Rs.)148.15165.09164.45103.3092.37
NP After MI And SOA / Share (Rs.)84.71103.69114.6965.4267.07
PBDIT Margin (%)15.9021.4222.2025.7624.26
PBIT Margin (%)12.0817.5517.8520.4818.93
PBT Margin (%)10.3912.3412.7912.547.89
Net Profit Margin (%)7.519.2411.318.898.08
NP After MI And SOA Margin (%)4.295.807.885.635.87
Return on Networth / Equity (%)6.348.679.976.577.79
Return on Capital Employeed (%)4.947.717.387.277.19
Return On Assets (%)1.362.022.601.611.80
Long Term Debt / Equity (X)0.970.840.610.801.04
Total Debt / Equity (X)1.521.290.960.951.25
Asset Turnover Ratio (%)0.340.150.120.080.11
Current Ratio (X)0.931.361.431.601.49
Quick Ratio (X)0.781.201.271.481.35
Inventory Turnover Ratio (X)1.822.492.611.622.19
Dividend Payout Ratio (NP) (%)0.009.637.846.1012.30
Dividend Payout Ratio (CP) (%)0.005.775.053.146.45
Earning Retention Ratio (%)0.0090.3792.1693.9087.70
Cash Earning Retention Ratio (%)0.0094.2394.9596.8693.55
Interest Coverage Ratio (X)12.594.174.453.442.65
Interest Coverage Ratio (Post Tax) (X)7.292.813.172.212.08
Enterprise Value (Cr.)332695.83249289.17219817.67190182.63132619.90
EV / Net Operating Revenue (X)2.542.122.302.491.76
EV / EBITDA (X)15.979.8910.349.667.27
MarketCap / Net Operating Revenue (X)1.160.911.151.250.41
Retention Ratios (%)0.0090.3692.1593.8987.69
Price / BV (X)1.711.371.451.460.55
Price / Net Operating Revenue (X)1.160.911.151.250.41
EarningsYield0.030.060.060.040.14

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: 2,629.79

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: 6.43% compared to the current price 2471

Intrinsic Value: 2,851.96

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: 15.42% compared to the current price ₹2471

Last 5 Year EPS CAGR: 8.45%

*Investments are subject to market risks

Strength and Weakness of Grasim Industries Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of 18.25, which is a positive sign.
  2. The company has higher reserves (47,222.92 cr) compared to borrowings (14.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (60.92 cr) and profit (7.00 cr) over the years.
  1. The stock has a low average ROCE of 9.33%, which may not be favorable.
  2. 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 ₹2629.79.

What is the Market Cap of Grasim Industries Ltd?

The Market Cap of Grasim Industries Ltd is 1,62,723 Cr..

What is the current Stock Price of Grasim Industries Ltd as on 23 June 2024?

The current stock price of Grasim Industries Ltd as on 23 June 2024 is ₹2,471.

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 2,535/1,689.

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

The Stock P/E of Grasim Industries Ltd is 27.8.

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 0.40 %.

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.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Grasim Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE