On February 22, the company inaugurated its three paint plants one in Haryana’s Panipat, the second in Tamil Nadu’s Cheyyar, and the last one in Punjab’s Ludhiana.
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The broking firm Motilal Oswal Financial Services remained bullish on the stock of Grasim Industries. The brokerage house has iterated a “Buy” rating on the stock and kept the target price unchanged at Rs 2,670. It has also kept the estimates for earnings per share unchanged for FY24 – 26.
The brokerage said it values its stake in subsidiary companies at a discount of 40%, standalone business seven times to its operating profit, and paint business one time to the investments.
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However, Motilal said that the company’s paint business has not been accounted for in its current market price.
“We do not change our assumptions for the paint business as of now and would wait for the scalability of operations,” the brokerage house said in a research report.
On February 22, the company inaugurated its three paint plants one in Haryana’s Panipat, the second in Tamil Nadu’s Cheyyar, and the last one in Punjab’s Ludhiana. In FY 25 the company’s other three will be commissioned in phases, which are in Karnataka, Maharashtra, and Kharagpur.
The company’s stock rose 2.3% to hit a new lifetime high of Rs 2,244 on the National Stock Exchange on February 22.
The company has a turnover target of Rs 10,000 crore in the next three years and believes to become profitable by that time.
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The company announced entry into the paints business two years ago with an initial capital of Rs 5000 crore, which it later raised to Rs 10,000 crore.
