- Grasim reported a net loss of 1.18 billion rupees for the first quarter.
- This result compares to a net loss of 521.2 million rupees in the same period last year.
- The market had estimated a larger net loss of 2.6 billion rupees.
- Grasim’s revenue for the quarter was 92.2 billion rupees, marking a 34% increase year-over-year.
- The revenue exceeded the market estimate, which was 90.67 billion rupees.
- The chemicals segment generated 23.9 billion rupees in revenue, up 15% from the previous year.
- This segment’s revenue also surpassed the estimate of 23.23 billion rupees.
- The “Others” segment reported revenue of 8.65 billion rupees, an increase of 8.4% year-over-year.
- Total costs for the quarter were 95.2 billion rupees, reflecting a 35% increase compared to last year.
- Raw material costs alone amounted to 42.3 billion rupees, which is a 22% rise year-over-year.
- Grasim reported other income of 1.44 billion rupees, up 55% from the previous year.
- The company currently has 7 buy recommendations, 1 hold, and 1 sell from analysts.
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Grasim Industries on Smartkarma
Analyst Coverage of Grasim Industries on Smartkarma
Investment analysts on Smartkarma are closely following Grasim Industries, with Pranav Bhavsar providing valuable insights. In their report titled “Birla Opus | Short Term Gain, Long Term Pain,” Bhavsar discusses market dynamics by interacting with Paint Dealers. The analysis suggests that Birla Opus, a part of Grasim Industries, might experience short-term market share gains, while a competitor like Asian Paints could face temporary losses. The report points out that aggressive moves in a sluggish market could benefit Birla Opus, although any apparent loss by Asian Paints is expected to be short-lived.
This research sheds light on the competitive landscape in the paint industry, highlighting the potential strategies and outcomes for companies like Grasim Industries. By delving into the current operating environment and market behavior, analysts like Pranav Bhavsar offer valuable insights for investors looking to understand the short-term and long-term prospects for Grasim Industries and its subsidiary, Birla Opus.
A look at Grasim Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Grasim Industries Outlook: Based on Smartkarma Smart Scores, Grasim Industries is positioned favorably for the long term. The company scores high in areas such as value and momentum, indicating a strong standing in terms of its financial attractiveness and market performance. With a solid reputation for value and positive momentum, Grasim Industries seems poised for continued growth and stability.
Company Overview: Grasim Industries Limited, a part of the Aditya Birla group, is a diversified operating company known for manufacturing a wide range of products such as Viscose Staple Fiber (VSF), cement, chemicals, and textiles. The company’s favorable Smart Scores in key areas reflect its solid foundation and potential for sustained success in the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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