GRASIM – Detailed Technical Rationale
GRASIM trades above short-term moving averages (5/10/20-DMA ~₹2715-2720) but below medium-term averages (50/100/200-DMA ~₹2736-2773), forming a bullish short-term structure within consolidation. RSI(14) at 53, Stoch(58) Buy, CCI(160) Buy, ADX(32) Buy, and multiple oscillators (Ultimate Oscillator, ROC) signal momentum; STOCHRSI/Williams %R overbought suggest profit-taking risks. Pivot supports ₹2700-2719 favor dips as entry zones toward neckline ₹2820-2840 breakout; accumulate above ₹2715 with stops below ₹2700.
Fundamental Analysis – Grasim Industries
Grasim, Aditya Birla Group’s flagship, spans viscose, chemicals, UltraTech stake, and paints, with TTM revenue ~₹1.59 lakh Cr and PAT ~₹4,367 Cr (EPS ₹64.8). TTM growth: revenue +13%, EBITDA +45%, PAT +34%, driven by chemicals/cement; trades at 21-22x P/E, 2x P/B. Paints rollout and chemicals expansion support growth, but high debt/equity (~2x) and low RoE (~4-5%) reflect capex intensity.
Recent/Upcoming Events & Impact
Resin Capacity Live: Kharagpur plant boosts specialty materials (margin positive).
Paints Capex: Birla Opus scaling; execution key for re-rating (medium-term upside).
Analyst Meets: Coverage sustains interest; UltraTech value unlock positive.
Positives vs Negatives
Positives:
Diversified growth (chemicals, paints, UltraTech); 13-45% TTM metrics surge.
Attractive valuation vs growth; technical breakout setup.
Negatives/Risks:
High debt/low RoE; capex execution risks.
Overbought short-term indicators; complex structure.
Disclaimer & Disclosure
Educational only; not investment advice. Markets risk capital loss; consult SEBI advisors. Public data; no guarantees. No positions in GRASIM.