Grasim Industries saw a 0.89 per cent increase in its shares on NSE today, trading at ₹2,495.20 at 1.55 p.m. This was despite the company reporting a net loss of ₹169 crore for Q3FY25, which was higher than the estimated loss of ₹74 crore by analysts. Grasim Industries also reported revenue of ₹8,120 crore, slightly below the expected ₹8,208 crore.
The Aditya Birla Group flagship recorded a 9 per cent year-on-year growth in consolidated revenue, reaching ₹34,793 crore. However, EBITDA declined by 9 per cent to ₹4,668 crore in Q3FY25. The company attributed this decrease to reduced realisations in the cement business and initial investments in its new paint business, Birla Opus.
In a significant development, Grasim’s board approved the setting up of a 110K TPA lyocell fibre plant in Harihar, Karnataka. The first phase of 55K TPA is expected to be completed by mid-2027, with an investment of ₹1,350 crore.
The company’s paint business, Birla Opus, has been making steady progress, with four out of six planned plants already operational, including the recently commissioned Chamarajnagar facility in November 2024. The remaining two plants are scheduled for completion in Q4FY25 and Q1FY26.
Despite the challenging results, major brokerages maintain a positive to neutral outlook on Grasim Industries. Jefferies has set a target price of ₹3,125 per share, while Morgan Stanley maintains an equal weight rating with a target of ₹2,950.
The article was published on February 11, 2025.
