Grasim Industries

Improving core business, Paints should shine

Equity Bottom-Up
223 Views, 08 Jan 2022 17:02
EXECUTIVE SUMMARY

Focus on backward integration in the Chemical segment should improve chlorine usage as Grasim plans to increase chlorine consumption in value added products (VAPs) to 40% by FY25E from 28% in FY21. Chemical segment's OPM should improve to 19% in FY23E from 13% in FY21. Further, likely capacity expansions of 37%/33% in the VSF/Caustic soda segments, respectively, should improve volume/profits during FY22-24E. We estimate a 16%/15% volume CAGR for the VSF/Chemical business, respectively, over FY21-24.

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Motilal Oswal
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Motilal Oswal Financial Services Limited
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Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial ... 

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