Grasim Industries Hits 52-Week High on Jefferies’ Bullish Paints Business Outlook

Grasim Industries’ share price surged over 2% to a 52-week high of Rs 2,722.95 on the BSE, following Jefferies’ reaffirmation of a ‘Buy’ rating with a target price of Rs 3,000. Jefferies values Grasim’s paints business, Birla Opus, at Rs 23,700 crore (Rs 348 per share) and praised the company’s preparedness and focus on delivering industry-leading products. The firm is ramping up its advertising and expanding product availability across multiple geographies.

Jefferies expressed higher confidence in Grasim’s ability to meet its steep revenue targets, highlighting the company’s robust preparedness across product, manufacturing capacity, distribution, and marketing fronts. The brokerage believes improved visibility on success in the paints segment could re-rate the standalone business and reduce the holding company discount. Grasim aims to onboard 50,000 dealers, covering 6,000 towns and 150 depots by FY25, and is building the second-largest network of dealers within the first year.

Grasim shares have delivered over 56% returns in one year, gaining more than 18% in the past three months and over 26% year-to-date. However, Jefferies noted key downside risks, including delays in global recovery affecting textiles and chemicals demand, delays in ramping up new capacities, and volatility in VSF and chemicals prices due to increased global supply. As of 11:15 am, Grasim Industries shares were trading 1.35% higher at Rs 2,705.00 on the BSE.