Motilal Oswal sets ₹3,800 target, recommends buy on Grasim
Motilal Oswal thinks Grasim Industries shares are worth picking up, setting a target price of ₹3,800.
The main reason? Grasim's viscose staple fiber (VSF) business is doing well, mostly because China's supply is tight and inventories are low, meaning prices should stay strong for now.
Motilal Oswal expects growth despite debt
Grasim's chemical segment might see some pressure as lower caustic soda ash prices (down ~17% QoQ in 2QFY27'QTD) have dropped, but the company's focus on using more of its own materials should help.
Financially, Motilal Oswal expects Grasim's revenue and profits to grow fast over the next couple of years.
Even though net debt could peak in fiscal 2027, things look set to improve by fiscal 2028.
In paints, Grasim is chasing market share with pricing-led revenue growth but could face short-term losses from higher costs.
Overall, the company's debt situation should get much better by 2028.