cement · GRASIM
Grasim Industries
Grasim Industries: PE above historical average. NARROW LEADERSHIP regime.
Price
₹3,104.8
Price 2026-07-30
5 day
+0.50%
Short-term move
1 month
+0.15%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹216.4k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Grasim Industries (GRASIM) in the cement sector?”
Price chart
₹3,116
+9.95% over period
About Grasim Industries
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, such as epoxy polymers and curing agents. The company also provides grey cement, white cement-based putty, and ready-mix concrete; and decorative paints, including exterior and interior emulsions, waterproofing, textures and designer finishes, enamels, colorants, wallpapers, stainers and non-mechanized tools, and wood finishes 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, equity broking, wealth management, asset management and reconstruction, and health and life insurance services. Further, the company provides textile products, such as linen fabrics, wool tops and worsted ya...
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -8.7% over 14 days) — not a reliable pattern.
52-week position
Trading at 96.4% of 52-week high
Technicals
RSI 14
35.5
Trend
mixed
50 DMA
Below
200 DMA
Above
Key metrics
P/E ratio
43.6
57th pct · 7 quarterly points (limited history)
P/B
2.1
ROE
6.3%
Below-average profitability — 6.3% ROE
Market cap
₹216.4k Cr
Revenue growth
1050.0% YoY
Promoter
48.7%
52-week range
₹2,502.5 – ₹3,222
96.4% of high
RSI (14)
35.5
mixed
vs 50 DMA
Below
DMA ₹3,122.9
Fundamental
60/100
ADEQUATE
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
Grasim Industries scores 60/100 on fundamentals (adequate). Grasim Industries: PE above historical average. NARROW LEADERSHIP regime.
Fundamental Score: 60/100 · ADEQUATE · 2 signals detected
DuPont Analysis
ROE 5.7% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 5.72% is modest leverage-driven and stable. Net margin 3.3%, asset turnover 0.32x, leverage 5.5x. High leverage amplifies returns but increases risk.
What This Means
Net margin of 3.3% means the company keeps ₹3.3 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.32x means the company generates ₹0.32 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 5.5x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
45.2%
Operating
10.8%
Net
3.3%
Gross margin 45.2% → operating margin 10.8% → net margin 3.3%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers -3.0x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 5.6x — adequate buffer. Debt is manageable. Debt/EBITDA at 8.4x is high — monitor leverage.
Free Cash Flow
STRONGFCF margin negative at -18.6% — spending more than earning. Check capex cycle.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| ULTRACEMCO UltraTech Cement | ₹11,847 | +1.5% | 42 | 10.6% | 300% | ₹3.4L Cr |
| AMBUJACEM Ambuja Cements | ₹434.2 | +2.5% | 22.9 | 8.3% | 720% | ₹1.1L Cr |
| SHREECEM Shree Cement | ₹26,455 | -1.4% | 55.4 | N/A | 520% | ₹96.4k Cr |
| ACC ACC Limited | ₹1,356.5 | +1.7% | 12.2 | 10.9% | 3230% | ₹26.0k Cr |
| RAMCOCEM The Ramco Cements | ₹915 | -0.0% | 31.7 | 9% | 890% | ₹22.1k Cr |
| GRASIM Grasim Industries | ₹3,104.8 | -0.3% | 43.6 | 6.3% | 1050% | ₹2.2L Cr |
Tensions to watch
Promoter holding at 48.7% — neither distress selling nor aggressive buying
No strong insider signal. Watch for changes in promoter stake as a leading indicator.
Key Watchpoints
Breaks above ₹3260 (+5%)
Trend reversal confirmation
Breaks below ₹2950 (-5%)
Further downside risk
PE reverts to median of 42.1 (7 quarterly points (limited history))
Valuation normalization
Cement sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only -3.0x net income. Profit not converting to cash — aggressive accounting possible.
Working capital is consuming significant cash. Operational efficiency declining.
Governance structure concerns. Independent director representation may be weak.
Profits are from core operations, not one-offs. High quality.
Modern asset base. Lower near-term capex requirements.
Collection cycle changing. Collection improving — positive for cash flow.
Company not overvalued on revenue basis.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes
