⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GRASIM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | GRASIM | Market Cap | 1,84,851 Cr. | Current Price | 2,716 ₹ | High / Low | 2,980 ₹ |
| Stock P/E | 479 | Book Value | 808 ₹ | Dividend Yield | 0.37 % | ROCE | 1.52 % |
| ROE | 0.35 % | Face Value | 2.00 ₹ | DMA 50 | 2,785 ₹ | DMA 200 | 2,762 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | -0.28 % | PAT Qtr | -127 Cr. | PAT Prev Qtr | 805 Cr. |
| RSI | 46.7 | MACD | -46.4 | Volume | 11,82,222 | Avg Vol 1Wk | 11,30,548 |
| Low price | 2,426 ₹ | High price | 2,980 ₹ | PEG Ratio | -7.94 | Debt to equity | 0.24 |
| 52w Index | 52.2 % | Qtr Profit Var | 24.8 % | EPS | 3.29 ₹ | Industry PE | 28.2 |
📊 Core Financials
- Quarterly PAT dropped sharply from ₹805 Cr. to -₹127 Cr., indicating severe earnings pressure.
- ROCE at 1.52% and ROE at 0.35% → very weak efficiency compared to peers.
- Debt-to-equity ratio of 0.24 → moderate leverage.
- Cash flows strained due to losses and weak profitability.
💹 Valuation Indicators
- P/E Ratio: 479 vs Industry PE of 28.2 → extremely overvalued.
- P/B Ratio: ~3.36x (₹2716 / ₹808) → moderate valuation relative to book value.
- PEG Ratio: -7.94 → negative, indicating poor growth visibility.
- Intrinsic Value: Current price above fair zone, reflecting speculative optimism.
🏢 Business Model & Competitive Advantage
- Diversified conglomerate with exposure to cement, textiles, chemicals, and financial services.
- Strong brand under Aditya Birla Group provides recognition.
- Weak profitability and efficiency metrics limit competitive advantage.
📈 Technical & Entry Zone
- Current Price: ₹2716, below 50 DMA (₹2785) and 200 DMA (₹2762).
- RSI: 46.7 → neutral zone.
- MACD: -46.4 → bearish momentum.
- Entry Zone: Attractive accumulation only for high-risk investors around ₹2400–₹2500.
- Long-Term Holding: Risky due to weak fundamentals; suitable only for speculative investors.
✅ Positive
- Strong brand under Aditya Birla Group.
- FII holdings increased slightly (+0.12%).
- Diversified business portfolio provides sectoral exposure.
⚠️ Limitation
- Extremely high P/E ratio (479).
- Negative PAT in recent quarter.
- Weak ROE and ROCE compared to peers.
📉 Company Negative News
- Quarterly PAT turned negative (-₹127 Cr.).
- Stock corrected from 52-week high of ₹2980.
- Decline in DII holdings (-0.28%).
📈 Company Positive News
- FII holdings increased by 0.12%, showing some foreign investor confidence.
- Strong brand presence under Aditya Birla Group supports long-term recognition.
🏭 Industry
- Diversified exposure across cement, textiles, and chemicals.
- Industry PE at 28.2 indicates moderate investor confidence.
🔎 Conclusion
GRASIM is a diversified conglomerate with strong brand recognition but currently facing severe earnings pressure and weak efficiency metrics.
Valuations are extremely stretched, making it risky for long-term investors.
Best accumulated cautiously around ₹2400–₹2500 only by high-risk investors, while monitoring profitability recovery.