While Grasim’s profitability in the VSF segment remains under pressure, low inventory (~8 days) and higher capacity utilization (~89% in Q3 FY25) in China should help support prices. The Paints business is witnessing strong traction, and going forward, revenue momentum and its movement in losses will be the key monitorables.
NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Grasim Industries Ltd.’s Q3 FY25 Ebitda was below our estimate, primarily due to lower profits in the VSF business (Ebitda margin of ~8% vs estimated ~12%). The company’s Ebitda declined ~48% YoY to Rs 2.7 billion (42% miss), led by losses in new business segments (~7% decline ex-new business segments).
Operating profit margin contracted 4.8% YoY to ~3% (estimate: ~6%). It reported a net loss of Rs 1.7 billion (estimated Rs 14 million profit) versus PAT of Rs 2.4 billion in Q3 FY24.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
. Read more on Research Reports by NDTV Profit.Motilal Oswal reiterates Buy rating with a revised target price of Rs 2,920 (earlier Rs 3,210) based on an SoTP valuation. Read MoreResearch Reports
NDTV Profit
