pocketful logo
Grasim Industries Ltd logo

Grasim Industries Ltd

NSE: GRASIM BSE: 500300

2806.90

(1.16)%

Tue, 03 Feb 2026, 08:00 am

Analysis

dividend

thumbs up icon

Pros

  • Dividends paid are thoroughly covered by earnings (16.9x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (11.1x coverage).
thumbs up icon

Cons

  • Dividends per share have fallen over the past 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Grasim Industries's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Grasim Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

thumbs up icon

Pros

  • Performance (ROE) is expected to be above the current IN Basic Materials industry average.
  • An improvement in Grasim Industries's performance (ROE) is expected over the next 3 years.
  • Grasim Industries's revenue growth is expected to exceed the India market average.
thumbs up icon

Cons

  • Cash flow for Grasim Industries is expected to decrease over the next 2 years.
  • Grasim Industries's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Grasim Industries's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Grasim Industries's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
  • Grasim Industries's earnings are expected to decrease over the next year.
  • Grasim Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Grasim Industries's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Grasim Industries's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).

health

thumbs up icon

Pros

  • Grasim Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Grasim Industries is profitable, therefore cash runway is not a concern.
  • Grasim Industries is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (23.6%, greater than 20% of total debt).
thumbs up icon

Cons

  • Debt is not covered by short term assets, assets are 0.7x debt.
  • Grasim Industries's long term commitments exceed its cash and other short term assets.
  • The level of debt compared to net worth has increased over the past 5 years (38.7% vs 77.7% today).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
  • Grasim Industries's level of debt (77.7%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

thumbs up icon

Pros

  • The tenure for the Grasim Industries board of directors is about average.
  • Dilip's remuneration is about average for companies of similar size in India.
  • Dilip's compensation has been consistent with company performance over the past year, both up more than 20%.
  • More shares have been bought than sold by Grasim Industries individual insiders in the past 3 months.
thumbs up icon

Cons

    misc

    thumbs up icon

    Pros

      thumbs up icon

      Cons

      • Grasim Industries is covered by less than 3 analysts.
      • Grasim Industries has significant price volatility in the past 3 months.

      past

      thumbs up icon

      Pros

      • Grasim Industries's 1-year earnings growth exceeds its 5-year average (149.6% vs 10.9%)
      • Grasim Industries's year on year earnings growth rate has been positive over the past 5 years.
      • Grasim Industries's earnings growth has exceeded the IN Basic Materials industry average in the past year (149.6% vs 17%).
      thumbs up icon

      Cons

      • Grasim Industries used its assets less efficiently than the IN Basic Materials industry average last year based on Return on Assets.
      • Grasim Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Grasim Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

      thumbs up icon

      Pros

      • Grasim Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Grasim Industries is good value based on assets compared to the IN Basic Materials industry average.
      • Grasim Industries is good value based on earnings compared to the IN Basic Materials industry average.
      • Grasim Industries is good value based on earnings compared to the India market.
      • NSEI:GRASIM is up 13.8% outperforming the Basic Materials industry which returned 9.2% over the past month.
      • NSEI:GRASIM is up 13.8% outperforming the market in India which returned 8% over the past month.
      thumbs up icon

      Cons

      • Grasim Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
      • GRASIM underperformed the Basic Materials industry which returned -15.5% over the past year.
      • GRASIM underperformed the Market in India which returned -14.5% over the past year.

      Open Your Free Demat Account Now!

      Step into a world of zero fees and limitless opportunities!

      pocketful logo

      2022-25 Pocketful. All rights reserved, Built with in India

      Version -5.76

      app image 1app image 2

      Explore

      Calculatorsfooter arrow down icon
      Popular Calculatorsfooter arrow down icon
      Group Stocksfooter arrow down icon

      Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800