Grasim Industries share price slips over a per cent after Q1 results; what should investors do?

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₹1,830.50 and quickly slipped over a per cent to ₹1,810. The stock was 0.82 per cent down at ₹1,815.55 around 9:25 am. Shares of Grasim are up 14 per cent in the last one year against a nearly 12 per cent gain in the equity benchmark Sensex.

Grasim Industries Q1 results: Grasim on Thursday reported a 56.1 per cent year-on-year fall in its standalone net profit for the fiscal's first quarter ended June (Q1FY24) to ₹355.27 crore. The company had reported a profit of ₹808.56 crore in the year-ago period. The company's standalone revenue from operations fell 14 per cent on year to ₹6,237.55 crores during Q1FY24 from ₹7,253.04 crore in Q1FY23.

The stock ended 0.78 per cent lower on BSE on Thursday. Read more: Grasim Industries Q1 Results: Net profit slumps 56% on year to ₹355.27 crore Most brokerage firms have maintained their earlier views on the stock after the June quarter earnings. Brokerage firm Motilal Oswal Financial Services maintained a buy call on Grasim Industries stock with a target price of ₹2,100, implying a 15 per cent upside potential.

The brokerage firm observed that Grasim’s margin during the quarter improved led by softening input costs and better efficiencies. "We maintain our buy rating on the stock with a target price of ₹2,100 as we value: (1) its holding in subsidiary companies by assigning a higher HoldCo discount of 40 per cent, (2) standalone business at 7 times EV/EBITDA, and (3) investments into the paints business at one time of investments," said Motilal Oswal. The company's management expects margins to sustain at the current level, supported by cost efficiencies and change in the product mix even as caustic soda demand is likely to be subdued in the second half of the calendar year (2HCY23)