Grasim Industries Ltd.'s share price declined after the company reported a decrease in its both consolidated and standalone net profit for July–September quarter. Its consolidated net profit fell 46% on the year to Rs 1,100 crore from Rs 2,024.1 crore.
Grasim Industries' standalone net profit declined 9% on the year to Rs 720.9 crore in the second quarter from Rs 794.7 crore in the corresponding period of the previous financial year.
Lower margin in chemical business and losses in textile businesses weighed on the operating profit of Grasim Industries, Motilal Oswal Financial Services said in a note Monday. The brokerage kept a 'Buy' rating on the stock, while it cut the target price to Rs 3,060 from Rs 3,270 apiece. The current target price implied a 21% upside from Thursday's closing price.
Grasim Industries Q2 FY25 Highlights (Consolidated, YoY)
Revenue up 11% to Rs 33,562.9 crore versus Rs 30,220.7 crore.
Net profit down 46% to Rs 1,100.2 crore versus Rs 2,024.1 crore.
Ebitda down 1% to Rs 6,017.1 crore versus Rs 6,052.7 crore.
Margin at 17.9% versus 20%
Grasim Industries share price was 0.73% higher at Rs 2,542.30 apiece.
Grasim Industries share price was 0.73% higher at Rs 2,542.30 apiece.
Grasim Industries share price fell 1.78% to Rs 2,479.05 apiece, the lowest level since Nov 13. The stock price erased losses and traded 0.55% higher at Rs 2,537.95 apiece as of 10:18 a.m., as compared to 0.41% decline in the NSE Nifty 50 index.
The stock gained 27.94% in 12 months and 19.31% on an year-to-date basis. Total traded volume on NSE so far in the day stood at 0.60 times its 30-day average. The relative strength index was at 38.96.
Out of 10 analysts tracking the company, six maintain a 'buy' rating, three recommend a 'hold,' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 13.4%
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