Grasim share price scales 52-week highs propelled by paint segment launch; Should you Buy, Sell or Hold the stock?
Grasim Industries share price has seen almost 40% rise as it scaled 52-week high on Thursday. The launch of Paint business is adding to optimism on earnings growth.
Kumar Mangalam Birla, Chairman, Aditya Birla Group, on Thursday announced the launch of products and services under its new decorative paints brand, “Birla Opus", aiming for Rs.10,000 Crore gross revenue within 3 years of full-scale operations. Grasim Industries in its press release on Thursday highlighted that Aditya Birla Group set to disrupt Paint industry with 40% addition to Industry Capacity.
Grasim is launching its paint product and inaugurating its first paint plant (in Panipat) . Grasim will commission 2 other plants during 4QFY24 and 3 plants in next 12-15 months.
It has already spent about 60% of planned capex of Rs10000 Crore for paintbusiness. Also Read-Bharat Dynamics trims FY24 revenue guidance on supply concerns from Israel; Elara Capital downgrades stock, cuts target Analysts remain watchful and analysts at Jefferies India Pvt Ltd who have a target price of ₹2300 for the stock trading at close to ₹2165 levels in their note had said that as we are aware of Launch & initial plans for Grasim , the ground architecture plants being completed, details pertaining to brands portfolio across multiple categories and supply chain, logistics, and distribution network coming into place, the dealer onboarding having commenced. Company will initially target certain areas in the North and South close to its factories and gradually roll out nationally; the initial target markets are bigger cities and towns.
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