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Grasim shares rise 3% after Q1 results; here's why analysts raised targets
The cement and cement products maker's stock rose as much as 3.36 per cent during the day to ₹2,782 per share, the biggest intraday rise since June 10 this year. The stock pared gains to trade 2.3 per cent higher at ₹2,754 apiece, compared to a 0.15 per cent advance in Nifty 50 as of 10:13 AM.
Shares of the company snapped a three-day fall and currently trade at 4.6 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 12.7 per cent this year, compared to a 3.3 per cent advance in the benchmark Nifty 50. Grasim has a total market capitalisation of ₹1.87 trillion.
Grasim Industries Q1 results
The flagship company of the Aditya Birla Group reported a 32 per cent increase in net profit in Q1 FY26 to ₹1,419 crore from ₹1,075 crore in the previous quarter. Consolidated revenue grew 16 per cent to ₹40,118 crore, and ebitda surged 36 per cent to ₹6,430 crore.
The cement business, anchored by listed subsidiary UltraTech, was the primary earnings driver. Cement sales rose almost 10 per cent from the previous year to 36.8 million tonnes. Ebitda (earnings before interest, tax, depreciation, and amortisation) per tonne rose 37 per cent to Rs 1,248.
In the chemicals business, improved realisations in caustic soda and gains in chlorine derivatives lifted ebitda 36 per cent to Rs 422 crore. Revenue increased 16 per cent to Rs 2,391 crore despite margin pressures in specialty chemicals due to low-cost imports.
Analysts on Grasim Q1 earnings
Motilal Oswal said Grasim's core businesses, viscose staple fibre (VSF) and chemicals, recorded improved profitability, supported by stable demand and operating performance. However, changing global trade dynamics and policies could pose near-term challenges.
The brokerage noted steady progress in the company's paints and B2B e-commerce businesses, driven by ongoing distribution expansion and product portfolio additions. It said revenue growth in these segments and a reduction in losses will be key monitorables. Analysts at Motilal Oswal reiterated its 'Buy' rating on the stock, with a target price of ₹3,500.
Meanwhile, Nuvama Institutional Equities said that while Grasim's chemical segment and CSF division showed improved performance, losses in its new businesses, B2B e-commerce and paints, weighed on overall results.
Following the first-quarter FY26 earnings beat, the brokerage raised its FY26 estimated Ebitda by around 20 per cent. Nuvama maintained its 'Hold' rating, with a revised target price of ₹2,971, up from ₹2,698 earlier.
Antique Stock Broking said it has raised its FY26 estimated standalone Ebitda by 13 per cent, while keeping its FY27 Ebitda estimate unchanged. The brokerage increased its target price to ₹3,050, from ₹2,875 earlier.
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