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Grasim Industries

NSEI:GRASIM
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GRASIM
NSEI
₹337B
Market Cap
  1. Home
  2. IN
  3. Materials
Company description

Grasim Industries Limited manufactures and sells of viscose staple fiber and fiber yarn, chemical and allied products, fertilizers, textiles, insulators, and cement and cement related products in India and internationally. The last earnings update was 59 days ago. More info.


Add to Portfolio Compare Print
  • Grasim Industries has significant price volatility in the past 3 months.
GRASIM Share Price and Events
7 Day Returns
11.4%
NSEI:GRASIM
0.8%
IN Basic Materials
5.7%
IN Market
1 Year Returns
-37.5%
NSEI:GRASIM
-29.6%
IN Basic Materials
-26.5%
IN Market
GRASIM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Grasim Industries (GRASIM) 11.4% -16.4% -29.8% -37.5% -49.5% -28.9%
IN Basic Materials 0.8% -23.9% -30.4% -29.6% -30.9% -9.3%
IN Market 5.7% -15.5% -26.4% -26.5% -18.9% -8.7%
1 Year Return vs Industry and Market
  • GRASIM underperformed the Basic Materials industry which returned -29.6% over the past year.
  • GRASIM underperformed the Market in India which returned -26.5% over the past year.
Price Volatility
GRASIM
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Grasim Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Grasim Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Grasim Industries.

NSEI:GRASIM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in INR ₹ 8.3842871428571
Payout Ratio Company Filings (2019-12-31) 2145.5%
Discount Rate (Cost of Equity) See below 15.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 6.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:GRASIM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 6.5%
Equity Risk Premium S&P Global 7.9%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.851 (1 + (1- 35%) (243.61%))
1.102
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (1.102 * 7.85%)
15.13%

Discounted Cash Flow Calculation for NSEI:GRASIM using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Grasim Industries is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

NSEI:GRASIM Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= ₹8.38 / (15.13% - 6.48%)
₹81.43
NSEI:GRASIM Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹81.43
Current discount Discount to share price of ₹530.55
= -1 x (₹530.55 - ₹81.43) / ₹81.43
-551.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Grasim Industries is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Grasim Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Grasim Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:GRASIM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in INR ₹59.57
NSEI:GRASIM Share Price ** NSEI (2020-04-09) in INR ₹530.55
India Basic Materials Industry PE Ratio Median Figure of 50 Publicly-Listed Basic Materials Companies 10.21x
India Market PE Ratio Median Figure of 2,616 Publicly-Listed Companies 9.64x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Grasim Industries.

NSEI:GRASIM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:GRASIM Share Price ÷ EPS (both in INR)

= 530.55 ÷ 59.57

8.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grasim Industries is good value based on earnings compared to the IN Basic Materials industry average.
  • Grasim Industries is good value based on earnings compared to the India market.
Price based on expected Growth
Does Grasim Industries's expected growth come at a high price?
Raw Data
NSEI:GRASIM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.91x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
11.1%per year
India Basic Materials Industry PEG Ratio Median Figure of 14 Publicly-Listed Basic Materials Companies 0.9x
India Market PEG Ratio Median Figure of 399 Publicly-Listed Companies 0.85x

*Line of best fit is calculated by linear regression .

NSEI:GRASIM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.91x ÷ 11.1%

0.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grasim Industries is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Grasim Industries's assets?
Raw Data
NSEI:GRASIM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in INR ₹849.81
NSEI:GRASIM Share Price * NSEI (2020-04-09) in INR ₹530.55
India Basic Materials Industry PB Ratio Median Figure of 58 Publicly-Listed Basic Materials Companies 0.63x
India Market PB Ratio Median Figure of 3,614 Publicly-Listed Companies 0.65x
NSEI:GRASIM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:GRASIM Share Price ÷ Book Value per Share (both in INR)

= 530.55 ÷ 849.81

0.62x

* Primary Listing of Grasim Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Grasim Industries is good value based on assets compared to the IN Basic Materials industry average.
X
Value checks
We assess Grasim Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)
  5. Grasim Industries has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Grasim Industries expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Grasim Industries expected to grow at an attractive rate?
  • Grasim Industries's earnings growth is expected to exceed the low risk savings rate of 6.5%.
Growth vs Market Checks
  • Grasim Industries's earnings growth is positive but not above the India market average.
  • Grasim Industries's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:GRASIM Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:GRASIM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 11.1%
NSEI:GRASIM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 10%
India Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 15.5%
India Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 8%
India Market Earnings Growth Rate Market Cap Weighted Average 19.5%
India Market Revenue Growth Rate Market Cap Weighted Average 8.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:GRASIM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:GRASIM Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 1,030,937 117,764 62,098 3
2021-03-31 918,843 103,488 52,783 3
2020-04-09
2020-03-31 884,432 109,374 48,721 2
NSEI:GRASIM Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-31 774,049 48,872
2019-09-30 768,461 48,052
2019-06-30 750,702 18,864
2019-03-31 729,706 -24,548 17,719
2018-12-31 697,282 13,480
2018-09-30 663,604 9,333
2018-06-30 632,088 29,042
2018-03-31 558,935 -41,399 26,786
2017-12-31 487,783 27,330
2017-09-30 420,884 29,064
2017-06-30 368,288 32,275
2017-03-31 360,684 72,878 31,673

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Grasim Industries's earnings are expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).
  • Grasim Industries's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:GRASIM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Grasim Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GRASIM Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 69.84 94.40 25.03 3.00
2021-03-31 56.98 80.30 19.23 3.00
2020-04-09
2020-03-31 56.21 74.40 20.14 3.00
NSEI:GRASIM Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-31 59.57
2019-09-30 65.47
2019-06-30 28.71
2019-03-31 26.96
2018-12-31 20.51
2018-09-30 14.20
2018-06-30 44.45
2018-03-31 44.22
2017-12-31 48.96
2017-09-30 56.92
2017-06-30 69.13
2017-03-31 67.85

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Grasim Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Grasim Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Grasim Industries has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Grasim Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Grasim Industries's growth in the last year to its industry (Basic Materials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Grasim Industries's year on year earnings growth rate has been positive over the past 5 years.
  • Grasim Industries's 1-year earnings growth exceeds its 5-year average (262.5% vs 9.1%)
  • Grasim Industries's earnings growth has exceeded the IN Basic Materials industry average in the past year (262.5% vs 21.9%).
Earnings and Revenue History
Grasim Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Grasim Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GRASIM Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 774,048.90 48,872.20 153,068.20
2019-09-30 768,460.50 48,052.30 150,541.80
2019-06-30 750,701.50 18,864.20 146,917.90
2019-03-31 729,706.40 17,719.20 146,700.20
2018-12-31 697,281.80 13,480.40 142,607.60
2018-09-30 663,604.10 9,333.00 137,232.50
2018-06-30 632,088.10 29,042.00 128,355.10
2018-03-31 558,935.00 26,785.80 118,269.80
2017-12-31 487,782.50 27,330.30 105,247.00
2017-09-30 420,884.20 29,064.30 94,327.40
2017-06-30 368,288.30 32,275.30 84,591.10
2017-03-31 360,684.00 31,673.00 85,215.90
2016-12-31 373,153.70 30,529.70 89,675.50
2016-09-30 372,125.30 29,652.50 89,685.60
2016-06-30 369,952.50 26,817.70 90,066.80
2016-03-31 344,874.70 24,681.40 84,314.00
2015-12-31 353,396.50 21,697.40 108,969.20 246.90
2015-09-30 337,293.70 18,134.60 106,495.50 246.90
2015-06-30 334,013.70 17,413.40 81,934.50
2015-03-31 324,749.90 17,438.00 80,515.40
2014-12-31 323,185.80 19,163.90 98,334.70 280.30
2014-09-30 313,993.90 19,147.10 95,584.90 280.30
2014-06-30 304,302.80 19,486.60 70,450.60
2014-03-31 291,969.80 20,715.40 88,293.20 280.30
2013-12-31 284,672.30 22,099.10 85,379.30 202.20
2013-09-30 281,263.00 24,271.50 84,554.80 202.20
2013-06-30 278,968.00 25,963.90 80,726.00 202.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Grasim Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Grasim Industries used its assets less efficiently than the IN Basic Materials industry average last year based on Return on Assets.
  • Grasim Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Grasim Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Grasim Industries has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Grasim Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Grasim Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Grasim Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Grasim Industries's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Grasim Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Grasim Industries Company Filings, last reported 3 months ago.

NSEI:GRASIM Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31
2019-09-30
2019-06-30 831,604.00 821,424.50 83,774.90
2019-03-31 831,604.00 821,412.90 83,774.90
2018-12-31 826,539.50 734,316.20 101,741.30
2018-09-30 826,539.50 734,316.20 101,741.30
2018-06-30 836,987.30 670,698.10 106,197.70
2018-03-31 836,987.30 671,983.90 92,185.80
2017-12-31 824,142.90 608,909.00 102,667.10
2017-09-30 824,142.90 608,909.00 102,667.10
2017-06-30 410,887.40 92,130.30 97,037.70
2017-03-31 410,890.10 92,110.20 71,217.40
2016-12-31 385,523.70 100,543.70 82,753.30
2016-09-30 385,523.70 100,543.70 82,753.30
2016-06-30 343,151.50 128,407.10 54,935.30
2016-03-31 361,581.30 125,018.80 58,975.50
2015-12-31 321,498.00 112,557.40 30,191.40
2015-09-30 321,498.00 112,557.40 30,191.40
2015-06-30 308,215.40 119,301.90 38,780.10
2015-03-31 308,215.40 119,301.90 38,560.30
2014-12-31 299,091.90 124,157.90 54,109.10
2014-09-30 299,091.90 124,157.90 54,109.10
2014-06-30 285,502.40 96,811.60 53,342.20
2014-03-31 285,502.40 96,811.60 53,342.20
2013-12-31 274,321.70 101,298.90 64,072.10
2013-09-30 274,321.70 101,298.90 64,072.10
2013-06-30 268,510.00 93,130.00
  • Grasim Industries's level of debt (98.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (34% vs 98.8% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Grasim Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Grasim Industries has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Grasim Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.32%
Current annual income from Grasim Industries dividends. Estimated to be 1.58% next year.
If you bought ₹2,000 of Grasim Industries shares you are expected to receive ₹26 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Grasim Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.89%).
  • Grasim Industries's dividend is below the markets top 25% of dividend payers in India (3.79%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:GRASIM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
India Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 0.8%
India Market Average Dividend Yield Market Cap Weighted Average of 1419 Stocks 1.8%
India Minimum Threshold Dividend Yield 10th Percentile 0.4%
India Bottom 25% Dividend Yield 25th Percentile 0.9%
India Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:GRASIM Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 9.15 3.00
2021-03-31 7.81 4.00
2020-04-09
2020-03-31 6.08 3.00
NSEI:GRASIM Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-07-26 7.000 0.993
2019-05-24 7.000 0.776
2018-08-20 6.200 0.729
2017-08-29 5.500 0.498
2016-08-11 4.500 0.450
2016-05-09 4.500 0.499
2015-08-26 3.600 0.496
2015-05-04 3.600 0.505
2014-08-07 4.200 0.588
2013-07-10 4.500 0.816
2013-05-06 4.500 0.783
2012-07-27 4.500 0.731
2012-07-04 4.500 0.852
2012-05-07 4.500 0.928
2011-09-19 4.000 0.796
2010-05-20 6.000 1.378
2009-05-19 6.000 1.178

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Grasim Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (8.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5x coverage).
X
Income/ dividend checks
We assess Grasim Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Grasim Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Grasim Industries has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Grasim Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dilip Gaur
COMPENSATION ₹65,455,000
AGE 62
TENURE AS CEO 4 years
CEO Bio

Mr. Dilip Singh Gaur has been Managing Director, Business Head of Fibre & Pulp, Director at Grasim Industries Limited since April 1, 2016. Mr. Gaur serves as Chief Executive Officer and Business Director of Pulp and Fibe for Aditya Birla Group. Mr. Gaur has more than 32 years experience in leadership positions in a cross section of Industries spanning Petroleum Refining, Petro chemicals, FMCG, specialty & Industrial chemicals, Fertilisers & Agri products, Nonferrous metals, oils & petrochemical etc in India, Malaysia & Egypt. Mr. Gaur served as Group Executive President and Head of Copper Business of Hindalco Industries Ltd. He served as Deputy Managing Director and Additional Whole-Time Director of UltraTech Cement Limited from October 15, 2014 to March 31, 2016 and served as its Chief Manufacturing Officer until March 31, 2016. Prior to joining Aditya Birla Group, Mr. Gaur has worked with Unilever for 24 years. He served as the Managing Director of Aditya Birla Group's Carbonblack business in Egypt ­ an Indo- Egyptian JV, before moving to Hindalco. He has been a Director of Thai Rayon Public Company Ltd since July 21, 2017. He serves as a Director of Domsjö Fabriker AB. He serves as a Director of Birla Mt Gordon, a subsidiary of Aditya Birla Minerals Limited. He served as a Non-Executive Director of Aditya Birla Minerals Limited from October 6, 2010 to October 15, 2014. Mr. Gaur is a Chemical Engineer.

CEO Compensation
  • Dilip's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dilip's remuneration is about average for companies of similar size in India.
Management Team

Dilip Gaur

TITLE
MD, Business Head of Fibre & Pulp and Director
COMPENSATION
₹65M
AGE
62
TENURE
4 yrs

Hutokshi Wadia

TITLE
President
COMPENSATION
₹10M

Ashish Adukia

TITLE
Chief Financial Officer
TENURE
0.8 yrs

R. Manjunath

TITLE
Executive Officer of Administration
AGE
67

Pragnya Ram

TITLE
Group Executive President of Corporate Communications & CSR
AGE
74

Rajeev Gopal

TITLE
Global Chief Sales & Marketing Officer and Group Executive President of Pulp & Fibre Business

Thomas Varghese

TITLE
Business Head of Textiles Business
AGE
58

Gopi Tulsian

TITLE
Executive President of Chemical Business
COMPENSATION
₹8M
AGE
82

R. Soni

TITLE
Senior Vice President of F & C
AGE
60

S. Sitani

TITLE
Senior Vice President
AGE
59
Board of Directors Tenure

Average tenure and age of the Grasim Industries board of directors in years:

9.7
Average Tenure
66.5
Average Age
  • The tenure for the Grasim Industries board of directors is about average.
Board of Directors

Kumar Birla

TITLE
Non-Executive Chairman
COMPENSATION
₹133M
AGE
52
TENURE
25.3 yrs

Dilip Gaur

TITLE
MD, Business Head of Fibre & Pulp and Director
COMPENSATION
₹65M
AGE
62
TENURE
4 yrs

Atul Daga

TITLE
CFO & Whole-Time Director of UltraTech Cement Limited
AGE
54

Arun Thiagarajan

TITLE
Independent Director
COMPENSATION
₹3M
AGE
75
TENURE
3.9 yrs

Cyril Shroff

TITLE
Independent Director
COMPENSATION
₹1M
AGE
60
TENURE
19.8 yrs

Shailendra Jain

TITLE
Non-Executive Director
COMPENSATION
₹2M
AGE
76
TENURE
10 yrs

Rajashree Birla

TITLE
Non Executive Director
COMPENSATION
₹13M
AGE
74
TENURE
24.1 yrs

Om Rungta

TITLE
Independent Director
COMPENSATION
₹2M
AGE
77
TENURE
5.6 yrs

Tom Connelly

TITLE
Independent Director
COMPENSATION
₹1M
AGE
67
TENURE
9.7 yrs

N. Mohanraj

TITLE
Non-Executive Independent Director
COMPENSATION
₹1M
AGE
66
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Grasim Industries individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
23. Mar 20 Buy Kumar Birla Individual 18. Mar 20 18. Mar 20 550,000 ₹527.20 ₹289,962,736
04. Dec 19 Sell Thomas Varghese Individual 29. Nov 19 29. Nov 19 -23,575 ₹790.29 ₹-18,631,086
27. Nov 19 Buy IGH Holdings Private Ltd Company 21. Nov 19 21. Nov 19 137,100 ₹789.22 ₹108,202,397
21. Nov 19 Sell ECE Industries Limited Company 13. Nov 19 13. Nov 19 -200,000 ₹752.60 ₹-150,519,983
26. Sep 19 Sell Krishna Maheshwari Individual 23. Sep 19 23. Sep 19 -10,000 ₹774.73 ₹-7,747,270
16. Sep 19 Sell Krishna Maheshwari Individual 12. Sep 19 12. Sep 19 -15,000 ₹723.23 ₹-10,848,445
22. Aug 19 Sell Krishna Maheshwari Individual 20. Aug 19 20. Aug 19 -5,000 ₹729.27 ₹-3,646,350
01. Jul 19 Sell Krishna Maheshwari Individual 26. Jun 19 27. Jun 19 -7,000 ₹930.34 ₹-6,389,300
X
Management checks
We assess Grasim Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Grasim Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Do Institutions Own Shares In Grasim Industries Limited (NSE:GRASIM)?

Insider Ownership Of Grasim Industries The definition of company insiders can be subjective, and does vary between jurisdictions. … Private Company Ownership Our data indicates that Private Companies hold 32%, of the company's shares. … Public Company Ownership It appears to us that public companies own 8.3% of GRASIM.

Simply Wall St -

Should You Be Worried About Insider Transactions At Grasim Industries Limited (NSE:GRASIM)?

So shareholders might well want to know whether insiders have been buying or selling shares in Grasim Industries Limited (NSE:GRASIM). … See our latest analysis for Grasim Industries Grasim Industries Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the insider, Krishna Maheshwari, for ₹6.4m worth of shares, at about ₹930 per share. … NSEI:GRASIM Recent Insider Trading, August 16th 2019 Grasim Industries Insiders Are Selling The Stock The last quarter saw substantial insider selling of Grasim Industries shares.

Simply Wall St -

What Does Grasim Industries Limited's (NSE:GRASIM) P/E Ratio Tell You?

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Grasim Industries: P/E of 28.86 = ₹778 ÷ ₹26.96 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … Grasim Industries saw earnings per share decrease by 39% last year. … How Does Grasim Industries's Debt Impact Its P/E Ratio?

Simply Wall St -

An Intrinsic Calculation For Grasim Industries Limited (NSE:GRASIM) Suggests It's 41% Undervalued

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (₹, Millions) ₹84.4b ₹106.2b ₹125.7b ₹144.6b ₹163.2b ₹181.6b ₹200.0b ₹218.7b ₹238.0b ₹258.0b Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 18.32% Est @ 15.09% Est @ 12.83% Est @ 11.25% Est @ 10.14% Est @ 9.36% Est @ 8.82% Est @ 8.44% Present Value (₹, Millions) Discounted @ 19.78% ₹70.4k ₹74.0k ₹73.1k ₹70.3k ₹66.2k ₹61.5k ₹56.5k ₹51.6k ₹46.9k ₹42.4k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= ₹613.0b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = ₹258b × (1 + 7.6%) ÷ (19.8% – 7.6%) = ₹2.3t Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = ₹₹2.3t ÷ ( 1 + 19.8%)10 = ₹373.13b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is ₹986.09b. … NSEI:GRASIM Intrinsic value, July 25th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Our Take On Grasim Industries Limited's (NSE:GRASIM) CEO Salary

See our latest analysis for Grasim Industries How Does Dilip Gaur's Compensation Compare With Similar Sized Companies? … According to our data, Grasim Industries Limited has a market capitalization of ₹591b, and pays its CEO total annual compensation worth ₹58m. … It appears that Grasim Industries Limited remunerates its CEO below most similar sized companies.

Simply Wall St -

Based On Its ROE, Is Grasim Industries Limited (NSE:GRASIM) A High Quality Stock?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Grasim Industries: 3.4% = ₹18b ÷ ₹827b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … In the latter case, the debt used for growth will improve returns, but won't affect the total equity. … Grasim Industries's Debt And Its 3.4% ROE Although Grasim Industries does use debt, its debt to equity ratio of 0.89 is still low.

Simply Wall St -

Investors Who Bought Grasim Industries (NSE:GRASIM) Shares Five Years Ago Are Now Up 40%

Unfortunately for shareholders, while the Grasim Industries Limited (NSE:GRASIM) share price is up 40% in the last five years, that's less than the market return. … During five years of share price growth, Grasim Industries actually saw its EPS drop 16% per year. … We note that for Grasim Industries the TSR over the last 5 years was 44%, which is better than the share price return mentioned above.

Simply Wall St -

Despite Its High P/E Ratio, Is Grasim Industries Limited (NSE:GRASIM) Still Undervalued?

We'll apply a basic P/E ratio analysis to Grasim Industries Limited's (NSE:GRASIM), to help you decide if the stock is worth further research. … Looking at earnings over the last twelve months, Grasim Industries has a P/E ratio of 43.08. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Who Has Been Selling Grasim Industries Limited (NSE:GRASIM) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Grasim Industries Limited (NSE:GRASIM). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Grasim Industries Insider Transactions Over The Last Year

Simply Wall St -

What Kind Of Shareholders Own Grasim Industries Limited (NSE:GRASIM)?

A look at the shareholders of Grasim Industries Limited (NSE:GRASIM) can tell us which group is most powerful. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Let's take a closer look to see what the different types of shareholder can tell us about GRASIM

Simply Wall St -

Company Info

Description

Grasim Industries Limited manufactures and sells of viscose staple fiber and fiber yarn, chemical and allied products, fertilizers, textiles, insulators, and cement and cement related products in India and internationally. The company offers viscose staple fiber, a man-made biodegradable fiber for use in apparels, home textiles, dress materials, knitted wear products, and non-woven applications; and rayon grade and wood pulp products; textile products that include linen and wool. It also provides grey cement; white cement under the Birla White brand; ready mix concrete; and putty. In addition, the company offers caustic soda, anhydrous aluminum chloride, chlorosulphonic acid, and polyaluminium chloride. Further, it provides stable bleaching powder under the Vikram, Shaktiman, and Lion brands for use in water treatment, as well as the textiles, pulp and paper, and carpet industries; and calcium chloride that is used in the oil industry and cement paint manufacturing, as well as epoxy products. Additionally, the company retails linen under the Linen Club Fabrics brand; and offers life insurance, asset management, private equity, corporate lending, structured finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management, and health insurance services, as well as urea’s, fertilizers, seeds, agrochemicals, bio stimulants, and insulators. It is also involved in solar power designing, engineering, procurement, and commissioning businesses. The company was incorporated in 1947 and is based in Nagda, India.

Details
Name: Grasim Industries Limited
GRASIM
Exchange: NSEI
Founded: 1947
₹337,187,735,618
657,798,938
Website: http://www.grasim.com
Address: Grasim Industries Limited
Birlagram,
Nagda,
Madhya Pradesh, 456331,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI GRASIM Equity Shares National Stock Exchange of India IN INR 03. Nov 1994
BSE 500300 Equity Shares Mumbai Stock Exchange IN INR 03. Nov 1994
BSE 500300 INR2 Mumbai Stock Exchange IN INR 09. Apr 2020
BDL GRA92 GDR EACH REPR 1 ORD SHARE (SPON)144A Bourse de Luxembourg LU USD 06. May 1993
BDL GRA99 GDR(EACH REP 1 INR10)LEVEL I SPONS Bourse de Luxembourg LU USD 05. Jan 2000
OTCPK GRSX.Y GDR(EACH REP 1 INR10)LEVEL I SPONS Pink Sheets LLC US USD 05. Jan 2000
NSEI GRASIM INR2 National Stock Exchange of India IN INR 09. Apr 2020
Number of employees
Current staff
Staff numbers
0
Grasim Industries employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 13:02
End of day share price update: 2020/04/09 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2020/02/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.