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Grasim Industries Limited (GRASIM) Fair Value & Analysis

Basic Materials · IN · Market cap ₹2.1T

GI Grasim Industries Limited GRASIM · NSE
Price₹3,220
Fair Value₹1,245
Upside-61.3%
Quality45/100
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Expensive Growth
Thin margins · 2.8% net margin
High debt · negative free cash flow
0.32% dividend yield
Trails peers (4/13)
Narrow moat 40/100
Evidence: Medium Range ₹933.80 – ₹1,556 Share as image

Fair value as of: Jul 17, 2026

From 16 valuation models · updated 22 days ago

Share price +0.9% over the past month.

Below-average quality, and screening another 61% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹1,556). The favourable scenario is already priced in.
  • Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹3,220 ₹1,249 Fair Value ₹1,245 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range ₹1,249 – ₹3,220 · fair‑value band ₹933.80 – ₹1,556 · the ₹3,220 price screens above the ₹1,245 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Grasim Industries Limited (GRASIM) currently trades at ₹3,220, while our model-based Fair Value estimate is ₹1,245, implying the stock looks roughly 61.3% overvalued today. We read business quality at 45/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Grasim Industries Limited generated revenue of ₹1.8T at a net margin of 2.8%. Revenue grew 10.5% year over year. It earns a return on equity of 6.3%. Net debt stands at ₹2.2T. Fundamentals as of Jul 17, 2026

Our scenario range runs from ₹933.80 (bear case) to ₹1,556 (bull case); at ₹3,220, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 29% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -60% fair-value upside, at -61%, GRASIM screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income ₹1,183 ₹1,199 ₹1,158 76
ROIC Compounder ₹2,935 ₹5,271 ₹7,583 72
Gordon GGM ₹237.06 ₹517.55 ₹870.80 70
All 16 models by family
Earnings-Based
Graham-Dodd ₹498.03 ₹2,734 ₹3,793 54
Lynch FV ₹760.81 ₹1,087 ₹1,413 50
PEG = 1.0 ₹760.81 ₹1,087 ₹1,413 46
EPV ₹2,406 ₹3,223 ₹3,949 59
Dividend Discount
Gordon GGM ₹237.06 ₹517.55 ₹870.80 70
DDM Multi-Stage ₹237.06 ₹423.96 ₹539.37 61
Multiples
P/E Multiple ₹1,099 ₹1,465 ₹1,831 63
P/S Multiple ₹933.80 ₹1,245 ₹1,556 58
P/B Multiple ₹933.80 ₹1,245 ₹1,556 55
EV/EBIT ₹4,857 ₹7,216 ₹9,575 53
EV/EBITDA ₹4,001 ₹6,076 ₹8,150 54
EV/Revenue ₹2,306 ₹4,246 ₹6,186 43
Asset-Based
NCAV (Graham) ₹762.92 ₹1,022 ₹1,526 50
Economic Profit
Residual Income ₹1,183 ₹1,199 ₹1,158 76
ROIC Compounder ₹2,935 ₹5,271 ₹7,583 72
Growth Earnings
Growth-Adj P/E ₹1,080 ₹1,542 ₹2,005 68

Widest divergence: Growth Earnings (₹1,542) versus Dividend Discount (₹423.96). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) ₹1.8T
Revenue growth (YoY) +10.5%
Net margin 2.8%
Return on equity 6.3%
Free cash flow −₹334B FY2026
P/E ratio 42.2
More key figures
Operating margin 17.3%
EPS (TTM) ₹73.24
Dividend yield 0.3%
EPS growth (YoY) +60.8%
Net debt ₹2.2T FY2026

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 27 · Market factors (momentum, volatility) 72

Profitability 23
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 8
Balance sheet, leverage, solvency risk
Investment 40
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 75
Distance to the 52-week high (market factor)
Net Issuance 68
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Grasim Industries Limited, together with its subsidiaries, primarily produces cellulosic fibres, diversified chemicals, fashion yarns, and fabrics in india and internationally. The company operates through Cellulosic Fibres, Chemicals, Building Materials, Financial Services, and Others segments.

Full company description

Grasim Industries Limited, together with its subsidiaries, primarily produces cellulosic fibres, diversified chemicals, fashion yarns, and fabrics in india and internationally. The company operates through Cellulosic Fibres, Chemicals, Building Materials, Financial Services, and Others segments. It offers cellulosic staple fibre; and cellulosic fashion yarn; chlor-alkali comprising caustic soda; chlorine derivatives, and specialty chemicals, that include epoxy polymers and curing agents. The company also provides grey cement, white cement-based putty, and ready-mix concrete; and decorative paints comprising interior and exterior water- based paints, enamel paints, wood finishes, waterproofing solutions, and wallpapers under the Birla Opus brand name. In addition, it operates Birla Pivot, a business-to-business e-commerce platform for building and construction materials; and offers non-banking financial services, housing finance, asset management, and health and life insurance, protection, investments, advisory, and value-added services. Further, the company provides textile products, such as linen fabrics, wool tops and worsted yarn, and cotton fabrics under Linen Club, Cavallo, Soktas, and Giza House brands; manufactures and sells ceramic and composite insulators for transmission and distribution lines, sub-stations, power equipment, and railway electrification industries; and engages in generating clean energy using solar, wind, hybrid, and floating solar systems. The company was incorporated in 1947 and is based in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Grasim Industries Limited reported revenue of ₹1.8T in FY2026 versus ₹957B in FY2022, a compound +16.4%/yr. Reported net income was ₹49.7B in FY2026, compounding −9.9%/yr from FY2022.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹1.8T
Latest YoY
+18.2%
Avg. growth/yr (3Y)
+14.3%
Avg. growth/yr (5Y)
+18.1%
Avg. growth/yr (21Y)
+15.0%
Revenue +16.4%/yr
FY22 ₹957B
FY23 ₹1.2T
FY24 ₹1.3T
FY25 ₹1.5T
FY26 ₹1.8T
Net income −9.9%/yr
FY22 ₹75.5B
FY23 ₹68.3B
FY24 ₹56.2B
FY25 ₹37.1B
FY26 ₹49.7B

GRASIM screens 61% overvalued. Compare with CRH plc →

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Cite: Fair Value Calculator (2026). "Grasim Industries Limited Fair Value". https://www.fairvalue-calculator.com/stock/GRASIM

Peer Group

Building Materials · 253 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 45 · Below median
Fair Value upside −61% · Bottom 25%
Return on equity (TTM) 6% · Above median
Return on assets 3% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 17% · Top 25%
Revenue growth 11% · Above median
Dividend yield (TTM) 0.3% · Below median
Debt / equity 1.52× · Higher than 75% of peers

Valuation Multiples vs Building Materials median · lower = cheaper

P/E (TTM) 42.0× · Pricier than 75% of peers
P/B 2.01× · Pricier than 75% of peers
P/S (TTM) 1.19× · Pricier than median
EV/EBITDA 9.9× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 27
FUTURE 53 · sector 2
PAST 25 · sector 15
HEALTH 24 · sector 92
DIVIDEND 6 · sector 42

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Building Materials stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
CRH plc CRH $102.92 $70.57 -31%
UltraTech Cement Limited ULTRACEMCO ₹11,711 ₹4,719 -60%
China Jushi Co 600176 ¥54.52 ¥13.95 -74%
CEMEX, S.A. CEMEXCPO 21.71 MXN 15.42 MXN -29%
Anhui Conch Cement Company 600585 ¥16.99 ¥26.14 +54%
Ambuja Cements Limited AMBUJACEM ₹435.25 ₹227.96 -48%
Shree Cement Limited SHREECEM ₹26,930 ₹8,215 -69%
TCC Group 1101B 43.70 TWD 10.48 TWD -76%
Taiwan Glass Ind. Corp 1802 53.30 TWD 13.98 TWD -74%
J.K. Cement Limited JKCEMENT ₹5,493 ₹2,184 -60%

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Frequently asked questions

Is Grasim Industries Limited (GRASIM) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of ₹1,245 versus a price of ₹3,220, about −61% (overvalued).
What is the fair value of GRASIM?
Our model-based fair value for Grasim Industries Limited is ₹1,245 (as of Jul 17, 2026), built from audited fundamentals. The current price is ₹3,220.
What is the quality score of GRASIM?
Grasim Industries Limited has a Quality Score of 45/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Grasim Industries Limited (GRASIM)?
Grasim Industries Limited reported trailing-twelve-month revenue of about ₹1.8T (latest available figure, as of Jul 17, 2026).
What is the net profit margin of GRASIM?
The net profit margin of Grasim Industries Limited is about 2.8%, meaning it keeps roughly 2.8% of revenue as net income. Based on the latest reported figures.
Does Grasim Industries Limited pay a dividend?
Grasim Industries Limited currently shows a dividend yield of about 0.32% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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