Nirmal Bang, one of the leading equity research-cum-broking house, is of the view that investors can buy Grasim Industries with a target price of Rs 2770 in short term.

The company is presently trading around Rs 2510-2525 level.

According to experts at Nirmal Bang, the stock may face some resistance around Rs 2700 levels, but after that it can even have more upward movement. 

The scrip has very strong support at Rs 2330.

Today (June 08), the shares of the company opened at Rs 395 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 2670 and a low of Rs 831 on BSE. Current EPS and P/E of the stock stood at 179.76 & 14.26 respectively.

Grasim Industries, on May 19, announced a capital expenditure of Rs 13 billion for cement division in the existing fiscal (FY10) for the completion of the existing projects and up-gradation. 

Last year, the company spent a total of Rs 14.67 billion as capex. 

The company’s key projects are nearing finishing point. At Shambhupura, Rajasthan, one of the two cement mills was licensed during the fourth quarter. 

Another cement mill at Shambhupura and split grinding plant Aligarh, Uttar Pradesh are likely to be started in Q1FY10. 

The clinker production facility that had begun in Q2FY09 has been adequately ramped up. The 3.3 Mn. MT clinkerisation plant at Kotputli, Rajasthan was accredited in March 2009. 

The grinding plant located at Kotputli plant is likely to go on stream by H1FY10. 

Thermal power plants having total capacity of 144 MW were licensed at four locations, comprising a division of 23 MW at Kotputli which was commissioned during April 2009.

With this, the total thermal power generation capacity stands enhanced at 268 MW. This will meet up approximately 80% of the business’ overall power requirement.
During March 2009, the company licensed its new 3.3 MTPA Clinkerisation facility at Kotputli (Rajasthan). 

Grasim Industries, a flagship company of the Aditya Birla group, has commissioned its new 3.3 MTPA Clinkerisation Plant at Kotputli (Rajasthan).