Grasim Industries Limited

GRASIM.BO•building-materials

Current Price

2,795.15INR

per share

Fair Value

899.49INR

Overvalued

210.7%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 14.09%, higher than industry average of 4.78%.

Growth Trajectory

Profitability

In the growth phase company makes 11.78% profit on every dollar of sales, higher than industry average of 10.55%.

Profitability Trajectory

Risk Profile

Investors expect at least 10.37% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

2.68T INR

Equity Value

610.32B INR

FCF Yield

96.34%

Average ROIC

8.40%

Cost of Capital

9.83%

P/E Ratio

17.55x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	1.53T INR	1.30T INR
Operating Income or EBIT	150.06B INR	158.48B INR
Interest Expense	31.07B INR	16.44B INR
Book Value Of Equity	975.09B INR	886.52B INR
Book Value Of Debt	1.86T INR	1.37T INR
Cash and Marketable Securities	292.50B INR	270.06B INR
Number of Shares Outstanding	678.52M	--
Minority interests	502.86B INR	0 INR
Current Stock Price	2795.15 INR	--
Effective Tax Rate	28.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

+13.63%

18.41%Company

4.78%Industry

Above Industry

Operating Margin

-0.77%

9.77%Company

10.55%Industry

At Industry Level

Grasim Industries Limited shows above-average growth compared to industry peers, suggesting strong market position and growth opportunities.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 70% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	1.88T INR	Add
Present Value (Cash Flow Over Next 10 Years)	802.42B INR	Add
Value of Operating Assets	2.68T INR	Sub-total
Debt	1.86T INR	Subtract
Minority Interests	502.85B INR	Subtract
Cash	292.50B INR	Add
Value of Equity	610.32B INR	Sub-total
Number of Shares	678.52M shares	Divisor
Estimated Value per Share (Fair Value)	899.49 INR	Total
Current Market Price	2.79K INR	Reference

Financial Projections

Total FCF Present Value

802.42B INR

Avg Revenue Growth

9.85%

Avg Operating Margin

12.22%

Avg ROIC

8.40%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	1.76T INR	2.01T INR	2.29T INR	2.62T INR	2.99T INR	3.35T INR	3.70T INR	4.01T INR	4.27T INR	4.47T INR	4.68T INR
Growth Rate	15.16%	14.08%	14.08%	14.08%	14.08%	12.20%	10.31%	8.42%	6.53%	4.65%	4.65%
PROFITABILITY
Operating Income	172.80B INR	224.05B INR	270.97B INR	326.66B INR	392.65B INR	440.56B INR	485.99B INR	526.94B INR	561.39B INR	587.49B INR	614.81B INR
Operating Margin	9.77%	11.11%	11.78%	12.44%	13.11%	13.11%	13.11%	13.11%	13.11%	13.11%	13.11%
EBIT (1-tax)	124.42B INR	161.32B INR	195.10B INR	235.19B INR	282.71B INR	315.44B INR	346.02B INR	373.07B INR	395.21B INR	411.24B INR	430.37B INR
CASH FLOW
Reinvestment	112.19B INR	128.00B INR	146.03B INR	166.60B INR	164.60B INR	130.39B INR	117.51B INR	98.87B INR	74.92B INR	78.40B INR	225.36B INR
Free Cash Flow	12.22B INR	33.32B INR	49.06B INR	68.59B INR	118.10B INR	185.04B INR	228.51B INR	274.20B INR	320.29B INR	332.84B INR	205.00B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	4.84T INR
Present Value	11.07B INR	27.35B INR	36.49B INR	46.21B INR	72.09B INR	102.62B INR	115.44B INR	126.53B INR	135.37B INR	129.20B INR	—
EFFICIENCY
ROIC	4.88%	6.06%	7.00%	8.02%	9.12%	9.66%	10.19%	10.62%	10.94%	11.16%	8.88%
Cost of Capital	10.37%	10.37%	10.37%	10.37%	10.37%	10.07%	9.77%	9.47%	9.17%	8.88%	8.88%
Sales/Capital	2.21x	2.21x	2.21x	2.21x	2.21x	2.65x	2.65x	2.65x	2.65x	2.65x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)