Grasim Industries Ltd.
Cement · NSE
52-week range
₹2,502 – ₹2,980
From 52w high
-0.4%
RSI (14)
73.3
vs SMA 50 / 200
↑ 50 · ↑ 200
Grasim Industries (₹2,968.6) trades within 0.4% of its 52-week high, above both its 50-DMA (₹2,732.7) and 200-DMA (₹2,784.7), and at a trailing PE of 44.4 versus a forward PE of 26.3. The conglomerate reported a 5-year revenue CAGR of 27.4% but carries a debt-to-equity of 126.6, zero FCF-positive years in the tracked window, and a 2.67% profit margin — a combination that places significant weight on sustained revenue growth to service its capital structure.
- ✓5-year revenue CAGR of 27.4% reflects material top-line expansion across the consolidated Aditya Birla portfolio, including the Birla Paints ramp-up.
- ✓Forward PE of 26.3 represents a 41% compression from the trailing PE of 44.4, implying the market is embedding meaningful earnings-growth expectations into the current price.
- ✓Price is above both the 50-DMA and 200-DMA, and the 52-week drawdown is just 0.4%, indicating the stock has held near its annual peak without a significant pullback.
- ✓NCLAT set aside the ₹301.6 crore CCI penalty and remanded for fresh hearing, removing the immediate liability from the balance sheet — though the matter is not fully resolved.
- ✗Debt-to-equity of 126.6 combined with zero FCF-positive years and a rising debt trend signals that growth has been funded externally; the balance sheet carries material refinancing and servicing risk if operating conditions tighten.
- ✗Profit margin of 2.67% is thin for a capital-intensive conglomerate; small deteriorations in input costs or pricing power could erode reported profitability substantially.
- ✗Quality score of 38/100 ranks 5th of 6 in the Cement sector, and ROE has not exceeded 15% in any tracked year — the business has not consistently generated returns above typical cost-of-equity thresholds.
- ✗RSI of 73.3 places the stock in overbought territory with resistance at ₹2,979, only 0.35% above current price, leaving limited near-term upside before a technical ceiling.
- ·NCLAT set aside the ₹301.6 crore CCI penalty against Grasim in May 2026 and remanded the matter for a fresh CCI hearing; the original fine related to competition-law violations and the outcome of the fresh hearing remains open.
- ·Morgan Stanley maintained an Overweight rating on GRASIM in April 2026, citing the Aditya Birla Group stock’s diversified exposure; the broker’s stated action is the newsworthy event — no price target commentary is reproduced here.
- ·Q4FY26 earnings are scheduled for May 20, 2026; the board meeting and results call represent the next catalyst that will test whether the forward PE compression thesis is supported by reported numbers.
- ?Does the 27.4% 5-year revenue CAGR reflect organic market-share gains, or is it primarily driven by the Birla Paints greenfield investment and acquisition activity — and how sustainable is that growth rate post-investment-cycle?
- ?With a D/E of 126.6 and zero FCF-positive years, what is the debt maturity profile and at what EBITDA growth rate does the company reach free-cash-flow breakeven?
- ?Given that the stock trades at a trailing PE of 44.4 — above cement-sector peers that share similar or higher quality scores — what incremental earnings acceleration would justify that premium over the next 2–3 years?
- ?The CCI matter has been remanded for fresh hearing: what was the original conduct alleged, and how material would a reinstated or revised penalty be relative to the current earnings base?
PE
44.4
Forward PE
26.3
ROE
—
Profit margin
+2.7%
D/E
126.63
Dividend yield
+0.3%
Quality score
38/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
0/5 yrs
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.Analysis generated 10 May 2026.