Buy Grasim With Target Of Rs 820: Axis Securities

Axis Securities has recommended a BUY on Grasim Industries with a Target Price of Rs.820, and upside of 8% from CMP of Rs. 760 and Stop Loss of Rs.725.

Buy Grasim With Target Of Rs 820

Headquartered in Mumbai, Grasim Industries is the flagship company of the Aditya Birla Group, and is one of the largest private sector companies in India. The company drives its revenue from four segment namely VSF, Cement, Chemicals and Textile. VSF and Cement contributes 90% of the revenue and operating profitof the company.

VSF (Viscose Staple Fibre) prices have been raised recently which augurs well for the company as it is one of the major contributor towards the revenue and profitability of the company.

The company holds 57% stake in Ultratech Cement Limited, the largest cement company in India. The cement demand in 2nd half FY21 is picking up gradually with infra and construction activities gaining momentum. Recently cement companies have also raised prices. This will be highly positive for the company.

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