Current Rating Overview
On 08 December 2025, MarketsMOJO assigned Grasim Industries Ltd a Buy rating, raising its Mojo Score from 61 to 71. This score reflects a comprehensive assessment of the company’s quality, valuation, financial trend, and technical outlook. The current Mojo Grade of Buy indicates that the stock is favourably positioned for investors seeking growth opportunities within the Cement & Cement Products sector.
Here’s How Grasim Industries Looks Today
As of 25 December 2025, Grasim Industries exhibits strong fundamentals and a positive market stance. The company’s large-cap status and significant market presence—being the second largest in its sector with a market capitalisation of ₹1,92,281 crores—underscore its importance in the industry. It accounts for 18.90% of the sector and generates annual sales of ₹1,59,663.26 crores, representing 37.42% of the industry’s total sales.
Quality Assessment
Grasim’s quality grade is rated as good, reflecting its robust operational performance and consistent growth. The company has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 17.75% and operating profit growing at 16.36%. This steady expansion highlights effective management and operational efficiency, which are critical for sustaining competitive advantage in the capital-intensive cement industry.
Valuation Perspective
The valuation grade is deemed attractive, supported by a Return on Capital Employed (ROCE) of 8.9% and an enterprise value to capital employed ratio of 1.3. These metrics suggest that Grasim is trading at a discount relative to its peers’ historical valuations, offering investors a compelling entry point. Despite a slight decline in profits over the past year (-8.7%), the stock has delivered a respectable 12.78% return over the same period, indicating resilience amid market fluctuations.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend
The financial trend for Grasim is positive, bolstered by recent half-year results. The company reported a Profit After Tax (PAT) of ₹1,999.86 crores, reflecting a growth rate of 33.14%. Profit Before Tax excluding other income (PBT less OI) stood at ₹2,164.80 crores, up 43.08%. Additionally, cash and cash equivalents reached a record high of ₹81,067.50 crores, signalling strong liquidity and financial stability. These figures demonstrate Grasim’s ability to generate cash flow and maintain profitability despite sectoral challenges.
Technical Outlook
Technically, the stock is rated as mildly bullish. Recent price movements show a modest 0.13% decline on the day, but positive momentum over longer periods is evident. The stock has gained 5.12% over the past month and 15.39% year-to-date, indicating sustained investor interest. Institutional holdings are high at 34.09%, suggesting confidence from sophisticated investors who typically conduct thorough fundamental analysis before committing capital.
Sector Position and Market Dynamics
Grasim’s position as the second largest company in the Cement & Cement Products sector, behind UltraTech Cement, reinforces its strategic importance. Its substantial market share and sales contribution highlight its influence on sector trends. The company’s ability to maintain growth and profitability in a cyclical industry is a key factor supporting its current Buy rating.
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What the Buy Rating Means for Investors
The Buy rating from MarketsMOJO suggests that Grasim Industries Ltd is currently viewed as a favourable investment opportunity. This recommendation is based on a balanced evaluation of the company’s quality, valuation, financial health, and technical indicators. Investors can interpret this as a signal that the stock is expected to deliver returns above the market average over the medium term, supported by solid fundamentals and attractive pricing.
However, as with all investments, it is important to consider market conditions and individual risk tolerance. The cement sector can be cyclical and sensitive to economic shifts, so ongoing monitoring of Grasim’s performance and sector dynamics is advisable.
Summary
In summary, Grasim Industries Ltd’s current Buy rating reflects its strong operational quality, attractive valuation metrics, positive financial trends, and supportive technical signals. The company’s leadership position in the sector, coupled with robust growth in sales and profits, underpins this positive outlook. As of 25 December 2025, investors have a compelling case to consider Grasim as part of a diversified portfolio focused on long-term growth in the cement industry.
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