cement
Grasim Industries
GRASIM · Nifty 50
₹3,150.4
Price 2026-06-17
At a Glance
Fundamental
60/100
ADEQUATE
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Grasim Industries scores 60/100 on fundamentals (adequate). Grasim Industries: PE above historical average. BROAD EXPANSION 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 of 3.3% × asset turnover of 0.32x × leverage of 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
Grasim Industries is compared against 5 peers in the cement sector.
Key Watchpoints
Breaks above ₹3308 (+5%)
Trend reversal confirmation
Breaks below ₹2993 (-5%)
Further downside risk
PE reverts to 5Y median of 42.2
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.
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