Buy Grasim Industries, target price Rs 1830: Prabhudas Lilladher

Prabhudas Lilladher has buy call on Grasim Industries with a target price of Rs 1830. The current market price of Grasim Industries Ltd. is Rs 1667.1. Prabhudas Lilladher recommended to keep stop loss at Rs 1600.

Grasim Industries, incorporated in the year 1947, is a Large Cap company (having a market cap of Rs 109787.22 Crore) operating in Diversified sector.

Grasim Industries key Products/Revenue Segments include Sale of Products, Scrap, Export Incentives, Other Operating Revenue, Power, Sale of services for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 27737.58 Crore, down -1.67 % from last quarter Total Income of Rs 28209.61 Crore and up 21.56 % from last year same quarter Total Income of Rs 22817.58 Crore. Company has reported net profit after tax of Rs 1419.20 Crore in latest quarter.

The company’s top management includes Mr.Kumar Mangalam Birla, Mr.N Mohanraj, Mrs.V Chandrasekaran, Mr.N Mohan Raj, Mr.Anita Ramachandran, Dr.Thomas Connelly Jr, Mr.Cyril Shroff, Mr.Raj Kumar, Dr.Santrupt Misra, Mr.Shailendra K Jain, Mrs.Rajashree Birla, Mr.H K Agarwal, Mr.Adesh Kumar Gupta. Company has B S R & Co. LLP as its auditors. As on 30-06-2022, the company has a total of 66 Crore shares outstanding.

Investment Rationale
The stock after the decent correction witnessed has bottomed out near the previous low of 1630 zone to form a double bottom formation pattern on the daily chart and with a small pullback witnessed has shown signs of improving the bias to anticipate for further rise with a trend reversal. The RSI also has indicated a reversal from the highly oversold zone to anticipate for upward move in the coming days improving the bias. With the risk reward being favorable and chart looking attractive, we suggest to buy and accumulate the stock for an upside target of 1830 keeping the stop loss of 1600.

Promoter/FII Holdings
Promoters held 42.76 per cent stake in the company as of 30-Jun-2022, while FIIs owned 11.49 per cent, DIIs 15.36 per cent.