Grasim Industries Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹173,966.83 crore, PE ratio of 30.93, debt-to-equity ratio of 98.7, and return on equity of 4.3%. These figures reflect the company’s financial health and current market valuation.
Content:
- Grasim Industries Ltd Overview
- Grasim Industries Financial Results
- Grasim Industries Financial Analysis
- Grasim Industries Company Metrics
- Grasim Industries Stock Performance
- Grasim Industries Peer Comparison
- Grasim Industries Shareholding Pattern
- Grasim Industries History
- How To Invest In Grasim Industries Ltd Share?
- Grasim Industries Limited Fundamental Analysis – FAQs
Grasim Industries Ltd Overview
Grasim Industries Ltd is a global producer of viscose, diversified chemicals, linen yarn, and fabrics in India. It operates across multiple sectors including viscose, chemicals, cement, financial services, and others such as textiles, insulators, and paints.
The company has a market capitalization of ₹173,966.83 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 10.16% below its 52-week high and 49.18% above its 52-week low.
Grasim Industries Financial Results
Grasim Industries Ltd has demonstrated strong revenue growth, with sales rising from ₹95,701 crore in FY 22 to ₹1,30,978 crore in FY 24. However, despite increased sales, net profit and EPS have declined, indicating potential cost pressures and rising financial liabilities, reflecting challenges in maintaining profitability.
1. Revenue Trend: Sales grew from ₹95,701 Crores in FY 22 to ₹1,17,627 Crores in FY 23, and further to ₹1,30,978 Crores in FY 24, demonstrating strong revenue growth.
2. Equity and Liabilities: The data doesn’t provide specifics on equity and liabilities, but increasing interest expenses from ₹4,776 Crores in FY 22 to ₹9,277 Crores in FY 24 suggest rising financial liabilities.
3. Profitability: OPM improved from 18% in FY 23 back to 21% in FY 24, matching the level seen in FY 22, indicating restored operational efficiency.
4. Earnings per Share (EPS): EPS decreased from ₹115 in FY 22 to ₹104 in FY 23, and further down to ₹85 in FY 24, reflecting a decrease in profitability per share despite higher sales.
5. Return on Net Worth (RoNW): Specific RoNW figures are not provided, but the decreasing EPS suggests there may have been a decline in return on net worth.
6. Financial Position: The financial position shows challenges, with net profit decreasing over the years despite increased sales, indicating potential cost pressures or inefficiencies not captured directly by the EBITDA.
Grasim Industries Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,30,978 | 1,17,627 | 95,701 |
| Expenses | Feb-84 | 96,038 | 75,270 |
| Operating Profit | 27,195 | 21,589 | 20,431 |
| OPM % | 21 | 18 | 21 |
| Other Income | 694.74 | 3,524 | 752.23 |
| EBITDA | 28,459 | 25,201 | 21,253 |
| Interest | 9,277 | 6,044 | 4,776 |
| Depreciation | 5,001 | 4,552 | 4,161 |
| Profit Before Tax | 13,611 | 14,518 | 12,247 |
| Tax % | 27.73 | 25.13 | 15.81 |
| Net Profit | 9,926 | 11,078 | 11,206 |
| EPS | 85 | 104 | 115 |
| Dividend Payout % | 11.72 | 10 | 9 |
* Consolidated Figures in Rs. Crores
Grasim Industries Company Metrics
Grasim Industries’ market capitalization is ₹173,966.83 crore, with a book value of ₹1346 per share and a face value of ₹2 per share. The asset turnover ratio is 0.35, and the total debt is ₹137,143.91 crore. ROE stands at 4.3%, quarterly EBITDA at ₹7,844.08 crore, and dividend yield at 0.38%.
Market Capitalization:
Market Capitalization represents the total market value of Grasim Industries’ outstanding shares, amounting to ₹173,966.83 crore.
Book Value:
The book value per share of Grasim Industries is ₹1346 indicating the value of the company’s net assets divided by its outstanding shares.
Face Value:
The face value of Grasim Industries’ shares is ₹2, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 0.35 measures how efficiently Grasim Industries uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of Grasim Industries stands at ₹137,143.91 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of 4.3% measures Grasim Industries’ profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Grasim Industries is ₹7,844.08 crore, indicating the company’s operating performance.
Dividend Yield:
The dividend yield of 0.38% shows the annual dividend payment as a percentage of Grasim Industries’ current share price, indicating the return on investment from dividends alone.
Grasim Industries Stock Performance
Grasim Industries Ltd delivered impressive returns with 43.5% in one year, 20.0% over three years, and 28.8% over five years. This showcases the company’s strong growth potential and consistent ability to generate substantial returns for its investors across various investment horizons.
| Period | Return on Investment (%) |
| 1 Year | 43.5 |
| 3 Years | 20.0 |
| 5 Years | 28.8 |
Example: If an investor had invested ₹1,000 in Grasim Industries’ stock:
1 year ago, their investment would be worth ₹1,435.
3 years ago, their investment would have grown to ₹1,200.
5 years ago, their investment would have increased to approximately ₹1,288.
Grasim Industries Peer Comparison
Grasim Industries Ltd, with a CMP of ₹2637.05 and a P/E ratio of 30.07, has a market cap of ₹173,747.03 Crores and a one-year return of 43.54%. It compares favorably within the textile sector against peers like Bombay Dyeing and Filatex India, which posted returns of 94.23% and 62.03%, showcasing a strong but varied market performance.
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | 1Yr return % | Vol 1d | 1mth return % | From 52w high | Down % | 6mth return % |
| Grasim Inds | 2637.05 | 30.07 | 173747.03 | 43.54 | 556908 | -3.83 | 0.92 | 8.36 | 21.61 |
| Bombay Dyeing | 218.61 | 4508.72 | 94.23 | 1389061 | 3.76 | 0.9 | 10.11 | 25.89 | |
| Filatex India | 64.73 | 25.95 | 2872.15 | 62.03 | 4381785 | 16.15 | 0.83 | 17.01 | 2.58 |
| Century Enka | 704.95 | 27.3 | 1542.17 | 56.79 | 1098229 | 20.8 | 0.99 | 1.27 | 65.09 |
| Indo Rama Synth. | 46.37 | 1210.24 | -1.24 | 332829 | 1.16 | 0.69 | 30.89 | -17.86 | |
| Vardhman Acrylic | 61.08 | 22.93 | 490.86 | 14.28 | 83114 | 1.63 | 0.82 | 18.45 | -11.35 |
| Pasupati Acrylon | 43.37 | 29.2 | 385.15 | 43.14 | 1527705 | 6.12 | 0.85 | 15.46 | -4.58 |
Grasim Industries Shareholding Pattern
Grasim Industries Ltd’s shareholding pattern has shown slight adjustments over time. Promoter shares remained steady at 43.06% since March 2024, after a slight increase from December 2023. FII and DII holdings have seen minor fluctuations, while the percentage held by retail and others has marginally decreased.
| Jun-24 | Mar-24 | Dec-23 | |
| Promoters | 43.06 | 43.06 | 42.75 |
| FII | 13.69 | 12.7 | 13 |
| DII | 19.67 | 20.48 | 20.61 |
| Retail & others | 23.58 | 23.76 | 24.11 |
Grasim Industries History
Grasim Industries Limited is a diversified conglomerate with a significant presence in multiple sectors. The company’s operations are divided into several key segments, including Viscose, Chemicals, Cement, Financial Services, and Others. This diversification strategy allows Grasim to maintain a strong position across various industries.
In the Viscose segment, Grasim is a global leader, producing viscose staple fiber, wood pulp, and viscose filament yarn. The Chemicals segment focuses on the production of caustic soda, allied chemicals, and epoxy. The company’s Cement segment operated through its subsidiary UltraTech Cement Limited, is a major player in the cement industry, offering grey cement, white cement, and allied products.
Grasim has also expanded into the financial services sector through its subsidiary Aditya Birla Capital Limited. This segment covers a wide range of services including non-bank financial services, life insurance, asset management, housing finance, and equity broking. Additionally, the company has interests in textiles, insulators, paints, solar power, and B2B e-commerce, demonstrating its commitment to diverse business operations.
How To Invest In Grasim Industries Ltd Share?
To invest in Grasim Industries Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Grasim Industries shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Grasim Industries Limited Fundamental Analysis – FAQs
Fundamental analysis of Grasim Industries examines key financial metrics: Market Cap (₹173,966.83 crore), PE Ratio (30.93), Debt to Equity (98.7), and Return on Equity (4.3%). These indicators provide insights into the company’s financial health, market valuation, and overall performance across its diverse business segments.
The market capitalization of Grasim Industries Ltd is ₹173,966.83 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Grasim Industries Limited is a diversified Indian conglomerate. It is a global producer of viscose, chemicals, and cement, and also operates in financial services and other sectors. The company’s portfolio includes renowned subsidiaries like UltraTech Cement and Aditya Birla Capital.
Grasim Industries is part of the Aditya Birla Group, led by Kumar Mangalam Birla. While the Birla family holds significant ownership through various entities, it’s a publicly listed company with multiple shareholders including institutional investors, public shareholders, and promoter entities.
The main shareholders of Grasim Industries typically include the Aditya Birla Group (promoter entities), institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current and accurate information on major shareholders, refer to the latest shareholding pattern disclosed by the company.
Grasim Industries operates across multiple industries. Its primary sectors include viscose fiber production, chemicals manufacturing, cement production (through UltraTech Cement), and financial services (through Aditya Birla Capital). The company also has interests in textiles, insulators, paints, and renewable energy.
To invest in Grasim Industries shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Grasim Industries is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
