Grasim shares gain 6% after Q3 result; Morgan Stanley sees 15% upside

Grasim Industries Q3 results, Grasim share price target: Grasim Industries remained in focus on Dalal Street on Friday, a day after the Aditya Birla group firm registered a mixed set of results for the fiscal third quarter. The stock rose as much as 6.06 per cent to Rs 2,182 at the day's high coming within Rs 0.05 to its 52-week high of Rs 2,182.05 clocked on January 31, 2024. The stock settled as the top Nifty 50 gainer at Rs 2,179.05, down Rs 121.75 or 5.92 per cent. 

Grasim Industries Q3 results

After market hours on Thursday, Grasim Industries reported a 41.5 per cent year-on-year decline in consolidated net profit to Rs 2,603.4 crore for the quarter ended December 31, 2023. Its revenue from operations grew 11.6 per cent to Rs 31,965.5 crore for the quarter under review, according to a regulatory filing.

Grasim Industries said the growth in revenue was driven by the performance of subsidiaries UltraTech Cement and Aditya Birla Capital. The company’s margin, a key measure of profitability, improved by 50 basis points on a year-on-year basis to 8.2 per cent, according to the filing.

Revenue from the viscose-pulp, viscose staple fibre (VSF) and filament yarn segment was at Rs 3,714.6 crore, Grasim Industries said. Read more on Grasim Q3 earnings

Grasim share price target: Morgan Stanley maintains ‘overweight’ rating

Morgan Stanley maintained an overweight rating on Grasim Industries, after the company’s earnings announcement, with a target price of Rs 2,430 per share, suggesting an upside potential of 15.1 per cent from the previous close.

According to brokerage, Grasim’s standalone EBITDA was below its estimate on account of its chemical unit and higher losses at new businesses, however, the paints business launch was on track and the B2B e-commerce business was expanding further.

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