Grasim Industries - Diwali Picks 2012 - Kotak

CMP - Rs.3356, Current TP - Rs.3662

- Grasim Industries is a diversified player in cement, viscose staple fibre (VSF) and chemicals and is also expanding its capacity in cement to enhance its overall market share in cement and VSF division to capture higher demand.

- We thus expect company to benefit from volume expansion as well as pricing improvement going forward.

- Along with this, company also has a healthy balance sheet and is open for further expansion in cement capacity through organic or inorganic means.

- It is trading at very attractive valuations of 9.4x P/E on FY14 estimates.

Source : Equity Bulls

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