Grasim Industries Limited

Grasim Industries Limited is the flagship company of the Aditya Birla group, it ranks amongst India’s largest private sector companies. On standalone basis, GIL’s core businesses comprise of viscose Staple fibre (VSF), caustic soda, speciality chemicals, rayon-grade wood pulp (RGWP) with plants at multiple locations. It also has certain other businesses such as fertiliser, textile, etc. Today, it has evolved into a leading diversified player with leadership presence across many sectors.

Key Services

• Viscose Staple Fibre
• Viscose Filament Yarn
• Chemicals
• Textiles
• Insulators
• Paints
• B2B E-Commerce

Shareholding Pattern

-PUBLIC GROUP

-PROMOTER GROUP

-Employee Trust

-Non Promoter-Non Public

Financial Summary

Synopsis of Financials

• Consolidated Revenue 33,861 Cr. up 9% YoY; EBITDA at 4,760 Cr. down 4% YoY
• Cellulosic Fibres : Highest ever CSF quarterly sales volume of 212 KT
• Chemicals: Speciality Chemicals contribution stood at highest-ever levels of 30%
• B2B E-commerce: Quarterly revenue run-rate of over 550 Cr.
• Total capex spend stood at 7,795 Cr., ~77% of total project cost
• Financial Services (Aditya Birla Capital): Total Lending portfolio (NBFC and HFC) grew 27% YoY to ₹1,27,705 Cr.

Final Outlook

In Q4 FY24, consolidated revenue grew by 12.7% year-on-year to Rs. 37,727 crore, driven by steady growth in the cement and financial services sectors. EBITDA increased by 27.2% year-on-year, with the margin rising by 180 basis points to 16.4%, thanks to moderated input costs. Profit after tax rose by 15.5% year-on-year to Rs. 2,722 crore, supported by higher other income but tempered by a one-off exceptional loss.

Borrowings have increased for financing of new large scale projects like Birla Opus and Birla Pivot, where demand seems robust but profitability should be kept in check. Price movement has been consistently on an upward trend with only noticeable correction being 4th June’s post election market scenario.Volume of the VSF segment up 8% YoY, while China’s demand is lagging.Caustic soda volumes up 8% YoY and Epoxy has seen 14-15% growth rate.

Recommending a buy position, stock is on an upward trend. Current expansions will affect profitability in the short term however, the stock will eventually break even giving decent returns. Market Analysts set TP around Rs. 2688 – Rs. 2840, allowing for all kinds of investment perspectives.