Grasim Q3 Results Review - Inline Performance Of Core Segments; Eyes On Paints Rollout: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Grasim Industries Ltd.’s Q3 FY24 Ebitda was ~10% below our estimates, primarily due to higher losses (up Rs 470 million QoQ to Rs 900 million) in the new businesses (Birla Pivot and Paints) and the insulator segment. Ebitda for the VSF/chemical segments was 5%/4% above our estimates. The VSF segment posted an Ebitda/kg of Rs 18.7 (estimate Rs 17.6), while the Chemical segment clocked an operating profit margin of 13.2% (estimate 12.3%) during the quarter. The lower tax rate resulted in a 47% YoY growth in adjusted profit to Rs 2.4 billion (versus estimate of Rs 2.0 billion). Grasim indicated that the margin in the VSF segment is stable. Even though the caustic soda price is declining, global prices are likely to bottom out soon, and then prices should remain stable or rise. The losses in the paints and B2B businesses were higher due to the rise in employee strength.We largely retain our earnings per share estimates for FY24-26. Reiterate 'Buy' with a target price of Rs 2,670 as we value its:holding in subsidiary companies by assigning a discount of 40%; standalone business at seven times enterprise value/Ebitda, andPaints business at one time of investments..Click on the attachment to read the full report:.Grasim Q3 Results: Profit Slumps 41%, Revenue Rises.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Grasim Q3 Results Review - Inline Performance Of Core Segments; Eyes On Paints Rollout: Motilal Oswal

Low base helps VSF segment; margin contracts in the chemical segment

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Grasim Q3 Results Review - Inline Performance Of Core Segments; Eyes On Paints Rollout: Motilal Oswal

Low base helps VSF segment; margin contracts in the chemical segment

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