Grasim Industries Ltd.
NSE: GRASIMGrasim Industries Ltd.: A 30-second snapshot
Grasim Industries (NSE: GRASIM) is a diversified conglomerate operating across cement (via UltraTech), viscose staple fibre, chemicals, and financial services, priced at Rs 3,149.5, which is 18.3% higher over 12 months, above both the 50-DMA (Rs 2,965) and 200-DMA (Rs 2,832), and within 1.6% of its 52-week high. Trailing PE stands at 43.2 against a net profit margin of 2.83% and ROE of 6.29%; the forward PE of 21.5 implies the market is pricing a substantial earnings uplift. Debt-to-equity is 134.1 with zero FCF-positive years in the persistence window and a rising debt trend, reflecting ongoing capital expansion across multiple business verticals.
P/E
43.2
Forward P/E
21.5
ROE
+6.3%
Debt / Equity
134.14
Profit Margin
+2.8%
Div. Yield
+0.3%
5Y ROE > 15%
0/5
5Y FCF > 0
0/5
Quality
32/100
News
8 headlines · 6 positive · 1 negative
Grasim Industries and Lubrizol Commission Advanced CPVC Resin Manufacturing Facility at Vilayat, Gujarat - ChemAnalyst
ChemAnalyst
Grasim and Lubrizol inaugurate advanced CPVC resin facility in India - European Coatings
European Coatings
Grasim Industries announces fresh $309 mn Lyocell capacity expansion - Fibre2Fashion
Fibre2Fashion
Grasim Industries bets $300M on lyocell fiber boom in India - Home Textiles Today
Home Textiles Today
Grasim Industries to invest ₹3,094 cr to add 1.10 lakh tpa Lyocell capacity in Karnataka - BusinessLine
BusinessLine
Recent context
- ·In June 2026, Grasim and Lubrizol commissioned an advanced CPVC resin manufacturing facility at Vilayat, Gujarat, marking entry into a specialty chemicals segment requiring upfront capital outlay.
- ·Also in June 2026, the company announced a Rs 3,094 crore ($309 million) investment to add 1.10 lakh tpa Lyocell capacity in Karnataka, described in trade press as one of the largest single-site Lyocell expansions globally.
- ·News flow over the trailing period is predominantly positive (6 of 8 articles), concentrated on the two capital-deployment announcements above; the singular negative-sentiment article was not among the five most recent headlines.
Strengths
- +Five-year revenue CAGR of 10.5% and five-year earnings CAGR of 60.8% reflect strong compounding and a step-up in profitability from a low base, even as the net margin remains thin at 2.83%.
- +Price action over 12 months (+18.3%) and 3 months (+20.8%) is positive, with the stock trading above both major moving averages (50-DMA: Rs 2,965; 200-DMA: Rs 2,832) and within 1.6% of the 52-week high.
- +RSI of 63.1 is in neutral territory (below the 70 overbought threshold), and identified technical support levels at Rs 3,035, Rs 2,881, and Rs 2,727 provide a tiered reference range below current price.
- +The company commissioned a CPVC resin facility with Lubrizol in Gujarat (June 2026) and announced a Rs 3,094 crore Lyocell capacity expansion in Karnataka, representing concrete operational milestones in new-growth verticals beyond the core cement business.
Weaknesses
- −ROE of 6.29% has never exceeded 15% in any tracked year and ranks 5th of 6 among cement-sector peers; quality score of 25 is the lowest in the peer group (peer range: 27-39), indicating structurally weak return on capital relative to comparables.
- −Debt-to-equity of 134.1 is materially above typical non-financial sector levels; FCF-positive years in the persistence window is 0 and the debt trend is rising, meaning the ongoing expansion pipeline is being funded through external capital with no demonstrated internal cash generation.
- −Net profit margin of 2.83% is thin for the scale and capital intensity of the business; the trailing PE of 43.2 is fully contingent on the forward earnings improvement implied by the 21.5 forward PE materialising across the consolidated entity.
- −Peer comparison places GRASIM at or near the bottom of the cement-sector peer set on both ROE (5th of 6, versus ACC at 10.93% and UltraTech at 10.59%) and quality score (6th of 6), while trailing PE of 43.2 is higher than ACC (11.9) and Ambuja (22.3).
Open questions
- ?Does the 60.8% five-year earnings CAGR reflect a sustained structural improvement in the core businesses, or does it primarily reflect recovery from a depressed base period, and how does the trajectory look for the next three years?
- ?With debt-to-equity at 134.1 and zero FCF-positive years, how does management plan to fund the $309 million Lyocell expansion and CPVC ramp without further leverage increases, and what is the projected FCF inflection timeline?
- ?The forward PE of 21.5 is less than half the trailing PE of 43.2 — what specific earnings drivers (pricing, volume, margin expansion, subsidiary contribution) are embedded in that forward estimate, and how sensitive is the implied valuation to a 10-20% earnings shortfall?
- ?How does the financial services subsidiary contribute to the consolidated debt-to-equity ratio, and does the conglomerate structure make direct PE and ROE comparisons with pure-play cement peers structurally misleading?
Peer comparison: Cement
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| GRASIM | Grasim Industries Ltd.You're viewing | 43.2 | +6.3% | 25 |
| Industry avg | across 5 peers | 31.1 | +9.1% | 32 |
| SHREECEM | Shree Cement Ltd. | 51.9 | — | 39 |
| ULTRACEMCO | UltraTech Cement Ltd. | 41.0 | +10.6% | 36 |
| AMBUJACEM | Ambuja Cements Ltd. | 22.3 | +8.3% | 32 |
| ACC | ACC Ltd. | 11.9 | +10.9% | 27 |
| DALBHARAT | Dalmia Bharat Ltd. | 28.4 | +6.5% | 27 |
Technical state
Current price
₹3,149.50
SMA 50
₹2,965.34
SMA 200
₹2,832.14
RSI (14)
63.1 (neutral)
From 52w high
-1.6%
1Y return
+18.3%
3M return
+20.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 134.1 is exceptionally elevated for a non-financial conglomerate spanning cement, chemicals, and financial services; FCF-positive years in the tracked persistence window is 0, debt trend is rising, and consistency score is 0, indicating the business has not generated surplus free cash across any recorded year and continues to expand leverage.
- highROE of 6.29% has not exceeded 15% in any tracked year (roeYearsAbove15: 0) and quality score of 25 ranks last (6th of 6) among cement-sector peers; trailing PE of 43.2 and forward PE of 21.5 represent a significant valuation premium over current return-on-equity and profit-margin levels (net margin 2.83%).
- mediumNet profit margin of 2.83% is thin for a capital-intensive multi-segment conglomerate; analyst rating data is absent (null) despite 11 analysts tracked, limiting visibility into current sell-side consensus direction.
- mediumGRASIM ranks 5th of 6 peers on PE and 5th of 6 on ROE within the cement sector; ACC (PE 11.9, ROE 10.93%) and Ambuja (PE 22.3, ROE 8.3%) display materially stronger return profiles at lower valuations, while GRASIM quality score of 25 is the lowest in the peer group.
- lowNews sample covers only 8 articles with 5 of the top headlines clustering on the CPVC facility commissioning and Lyocell capacity expansion announced in June 2026, providing limited breadth across the full business portfolio and balance-sheet risk dimensions.
Cross-section contradictions
- Zero FCF-positive years, rising debt, ROE of 6.29%, and a quality score that ranks last among 6 peers coexist with a trailing PE of 43.2, a 12-month price gain of 18.3%, and a drawdown of only 1.6% from the 52-week high, indicating the market is pricing a step-change in forward earnings (forward PE 21.5 vs trailing 43.2) rather than current balance-sheet or return-quality metrics.
- News sentiment is positive (6 positive vs 1 negative), driven by the CPVC facility launch and a $309 million Lyocell expansion; both are capital-deployment events that add to the already rising debt trend rather than demonstrating cash generation.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 21 Jun 2026 · rotates through NIFTY 500 every ~5 days