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Jefferies' 'buy' call on Grasim Industries, sees 14% upside: What is the target price?
The brokerage put a price target of ₹2,600 apiece on Grasim Industries.
International brokerage firm Jefferies retained 'buy' call on Grasim Industries ahead of an awaited scale-up on the Aditya Birla Group flagship. The brokerage put a price target of ₹2,600 apiece on Grasim Industries. This indicates a 14 percent upside from the previous session's closing price.
What Grasim Industries financials look like?
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Grasim Industries said that it aims at a ₹1,000-crore revenue milestone for the Birla Opus pivot while it invested around ₹2,000 crore into setting up and building the Birla Opus unit in FY22.
What Jefferies said on Grasim Industries?
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Jefferies said Grasim Industries' closest competitor Infra.Market has grown exponentially over the past three years and has a valuation of $2.5 billion.
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As Grasim Industries has said that it wants to scale segment gross revenues to $1 billion by FY27, Jefferies said that it is awaiting a sustained scale-up for the company. The brokerage firm did not value portions of business separately in the sum-of-the-parts method.
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What Jefferies said on Grasim Industries in February?
In February, Grasim Industries announced launch of its paints business, Birla Opus, and the opening of three new plants. Jefferies noted then that Grasim Industries' entry into the paints market could impact shares and margins in the industry.
