Grasim Industries shares hit record high as Jefferies turns bullish on this business

Shares of Grasim Industries Ltd surged to their record high today after international brokerage Jefferies assigned a buy call on the stock with a target price of Rs 2,300. The fresh target amounts to an upside of 4.90% from the previous close of Rs 2192.40. The stock zoomed 2.39% intraday to a fresh high of Rs 2244.95 on BSE today. Jefferies said the company from The Aditya Birla Group is poised to make significant strides in its paints business, with the imminent launch of its products and the opening of its first paints plant later in February.

Grasim also plans to open two more plants during Q4FY24 and three more in the next 12-15 months.

With nearly 60% of its planned capex of Rs 10,000 crore invested in the paints business, Grasim is aggressively positioning itself in this competitive market, said Jefferies.

Aditya Birla Group Chairman Kumar Mangalam Birla on Thursday announced the launch of products and services under its new decorative paints brand, 'Birla Opus', aiming for Rs.10,000 crore gross revenue within 3 years of full-scale operations.

This marks the Aditya Birla Group’s entry into the rapidly expanding Rs 80,000 crore Indian decorative paints market. Grasim Industries is setting up the business of Birla Opus, it said in a communication to bourses.

Later, the stock closed 0.32% higher at Rs 2,199.45 on BSE today. Total 0.79 lakh shares of Grasim changed hands amounting to a turnover of Rs 17.36 crore. Market cap of the firm rose to Rs 1.49 lakh crore.

The share has gained 40% in one year and gained 3.86% since the beginning of this year.

The share fell to a 52-week low of Rs 1,521.89 on March 16, 2023. The stock has a beta of 0.4, indicating very low volatility in a year.

In terms of technicals, the relative strength index (RSI) of Grasim Industries stands at 60.1, signaling it's trading neither in the overbought zone nor in the oversold zone. Grasim Industries shares are trading higher than the 5 day, 20 day, 50 day,  100 day, 150 day and 200 day moving averages.

Grasim Industries is a leading global player in VSF and a prominent producer of Chlor-Alkali, Advanced Material, Linen Yarn and Fabrics in India. It also entered the paints manufacturing business in the beginning of 2021.

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