As of the latest evaluation, Grasim Industries' P/E ratio stands at 43.05, a figure that situates it below some of its prominent peers in the cement industry. For instance, Shree Cement and UltraTech Cement report P/E ratios of 55.63 and 47.03 respectively, indicating a relatively more moderate valuation for Grasim. The price-to-book value for Grasim is recorded at 1.89, which aligns with an attractive valuation grade adjustment from a previously very attractive level. This suggests a recalibration in how the market prices the company’s equity relative to its book value.
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Examining enterprise value multiples, Grasim Industries shows an EV to EBITDA ratio of 11.48 and an EV to EBIT of 14.78, both of which are considerably lower than UltraTech Cement’s EV to EBITDA of 24.4 and EV to EBIT of 19.19 for Shree Cement. These figures highlight a valuation context where Grasim’s stock price reflects a more tempered premium relative to its earnings before interest, taxes, depreciation, and amortisation. The EV to capital employed and EV to sales ratios, at 1.32 and 2.30 respectively, further illustrate the company’s valuation stance within the sector.
From a returns perspective, Grasim Industries has delivered a year-to-date return of 12.79%, outpacing the Sensex’s 8.36% over the same period. Over longer horizons, the stock’s performance remains robust with a 5-year return of 226.71% compared to the Sensex’s 91.65%, and a 10-year return of 284.70% versus the Sensex’s 232.28%. These figures underscore the stock’s capacity to generate returns above the broader market benchmark, despite recent day-to-day fluctuations.
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Profitability metrics for Grasim Industries reveal a return on capital employed (ROCE) of 8.90% and a return on equity (ROE) of 4.38%. While these figures are modest relative to some industry standards, they provide insight into the company’s operational efficiency and shareholder returns. The dividend yield currently stands at 0.36%, reflecting the company’s approach to shareholder distributions amid its valuation adjustments.
Market activity on the day shows Grasim Industries trading at ₹2,761.85, slightly below its previous close of ₹2,792.00. The stock’s 52-week trading range spans from ₹2,276.10 to ₹2,978.85, indicating a relatively stable price corridor over the past year. Daily price fluctuations have seen highs of ₹2,799.70 and lows of ₹2,754.60, suggesting moderate intraday volatility.
In summary, the recent valuation parameter changes for Grasim Industries reflect a nuanced shift in price attractiveness within the Cement & Cement Products sector. The company’s valuation multiples, when compared to peers and historical data, suggest a recalibrated market perception. Investors analysing Grasim should consider these valuation adjustments alongside the company’s financial metrics and sector dynamics to form a comprehensive view of its investment potential.
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