Grasim Industries Share Price Target at Rs 3,133: Geojit Research

Akash Verma 12 December 2025

Geojit Investments has issued a BUY recommendation for Grasim Industries, a flagship Aditya Birla Group entity, with a revised target price of Rs. 3,133, implying a 14% upside from the current market price of Rs. 2,746 as of December 9, 2025. This assessment underscores the company's diversified prowess across cement, paints, chemicals, and emerging ventures, fueled by robust Q2FY26 results: consolidated revenue surged 16.6% year-over-year to Rs. 39,900 crore, EBITDA climbed 28.6% to Rs. 5,217 crore with margins expanding 120 basis points to 13.1%, and adjusted PAT rose 39% to Rs. 553 crore. Grasim's strategic expansions in Birla Opus paints and Birla Pivot B2B platforms, alongside chemical resurgence and capacity enhancements, position it for sustained trajectory amid favorable sector tailwinds.

Investors should eye support levels at Rs. 2,600 (key pivot), Rs. 2,500 (strong demand zone), and Rs. 2,400 (critical downside), with resistance at Rs. 2,900, Rs. 3,000, and the target Rs. 3,133 for optimal entry and exit dynamics.

Geojit’s Bullish Stance on Grasim’s Momentum

Geojit Investments, a seasoned equity research powerhouse, reaffirms its BUY call on Grasim Industries, citing the conglomerate's unwavering diversified growth trajectory. The report, dated December 10, 2025, leverages sum-of-the-parts (SOTP) valuation to peg the target at Rs. 3,133, reflecting premium multiples on high-conviction segments like paints and B2B e-commerce. This endorsement arrives amid Grasim's market capitalization of Rs. 188,433 crore, with a beta of 1.2 signaling measured volatility against the Sensex benchmark.

, with promoters at 43.1%, FIIs inching to 16.6%, and mutual funds at 17.3% as of Q2FY26. Geojit anticipates FY26E adjusted EPS of Rs. 93.6, trading at a forward P/E of 28.7x—attractive given projected ROE escalation to 11.2%.

Q2FY26 Financial Powerhouse Unleashed

Grasim's Q2FY26 delivered sterling operational excellence, with revenue at Rs. 39,900 crore marking a 16.6% YoY surge, outpacing H1FY26's 16.3% growth to Rs. 80,018 crore. The cement vertical, a cornerstone, propelled building materials revenue 28.3% higher to Rs. 2,253 crore, underpinned by 20% YoY topline expansion to Rs. 19,607 crore.

Chemicals segment roared back with 16.8% revenue growth to Rs. 2,399 crore—its loftiest in two years—bolstered by caustic soda, chlorine derivatives, and specialty chemicals. EBITDA margins dilated to 13.1%, while adjusted PAT leaped 39% YoY, cementing Grasim's resilience amid cyclical headwinds.

Metric	Q2FY26	Q2FY25	YoY Change
Sales (Rs. Cr)	39,900	34,223	+16.6%
EBITDA (Rs. Cr)	5,217	4,056	+28.6%
EBITDA Margin	13.1%	11.9%	+120 bps
Adj. PAT (Rs. Cr)	553	398	+39.0%

Strategic Expansions Fueling Ascendancy

Birla Opus, Grasim's paints foray, hit a milestone with its sixth plant in Khargpur operational from October 15, 2025, boasting 236 million liters annual capacity and elevating total installed paints capacity to 1,332 million liters. Capital infusion stands at Rs. 9,727 crore as of September 2025, with FY26 capex budgeted at Rs. 2,263 crore—Rs. 941 crore already deployed in H1.

Birla Pivot morphs into a full-stack procurement behemoth, diversifying into polymers, solvents, textile chemicals, and non-ferrous metals, targeting Rs. 8,500 crore revenue by FY27. Aditya Birla Renewables doubled Q2 revenue to Rs. 259 crore, textiles flipped profitable with Rs. 24 crore EBITDA, and lyocell expansion eyes mid-2027 commissioning.

Projections and Valuation Intricacies

Geojit trims FY26E revenue marginally to Rs. 171,288 crore (-2.3% vs. prior estimates) yet forecasts 15.4% growth, with EBITDA at Rs. 26,603 crore and margins at 15.5%. FY27E envisions Rs. 189,857 crore sales, 16.2% margins, and PAT of Rs. 7,818 crore, yielding EPS of Rs. 114.9.

The SOTP framework assigns robust multiples: standalone FY27E P/E at 15x (Rs. 16,073 crore), paints/B2B at 2.5x FY25 PS (Rs. 26,464 crore), UltraTech stake post-40% holding discount (Rs. 136,707 crore), and others at 1.2x FY25 PBV.

Segment	Basis	Value (Rs. Cr)
Standalone	FY27E P/E 15x	16,073
Paints & B2B	FY25 PS 2.5x	26,464
UltraTech (discounted)	Geojit TP	136,707
Others (discounted)	FY25E PBV 1.2x	14,129
Total	SOTP	213,203 (TP Rs. 3,133)

Technical Levels and Investor Roadmap

For traders, support echelons cluster at Rs. 2,600 (50-day SMA confluence), Rs. 2,500 (200-day EMA), and Rs. 2,400 (52-week trough proxy), ideal for accretive positions. Upside hurdles loom at Rs. 2,900 (recent pivot high), Rs. 3,000 (psychological barrier), culminating at Geojit's Rs. 3,133 target— a 14% premium warranting accumulation on dips.

Risk-reward skews bullish for long-term allocators, given debt-equity stability at 1.2x, ROCE rebound to 5.6% by FY27, and dividend yield of 0.4%. Geojit's track record—upgrading from HOLD in 2022 to consistent BUY—affirms conviction, though monitor paint capex fruition and raw material volatility.

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