Grasim shares jump 5% as brokerages bullish on company post Q4 results- Grow Mudra

Grasim shares jump 5% as brokerages bullish on company post Q4 results

21 May , 2026 By : Debdeep Gupta

Shares of Grasim Industries rose 5% to an all-time high of Rs 3,116.90 apiece on May 21 to emerge as top Nifty gainer a day after the company announced its March quarter earnings. Brokerages took a bullish stance on the stock due to its improved performance in the paints business. The company narrowed its March quarter net loss, and revenue was sharply above analysts' estimate.

The Aditya Birla Group firm reported a standalone net loss of Rs 164 crore for the quarter ended March 31, compared with a loss of Rs 288 crore a year earlier.

Standalone EBITDA rose 47% to Rs 659 crore, driven by improved performance in cellulosic fibres along with recovery in textiles.

Revenue from operations rose to Rs 11,774 crore from Rs 8,926 crore a year earlier

At the group level, growth was led by the building materials business - primarily UltraTech Cement - and financial services, which drove overall earnings expansion and offset weaker profitability in investment-heavy standalone businesses.

Birla Opus gained market share, strengthening its position with an estimated 90 basis-point sequential increase in the March quarter, while Birla Pivot saw revenue more than double year-on-year.

"While cost pressure remains a near-term headwind, it expects margin improvement through operating leverage, procurement efficiencies, and scale benefits," Motilal Oswal said. The brokerage has raised the company's FY27 earnings per estimate 2.6 times on account of high dividend income from UltraTech Cement. Motial Oswal maintained a 'buy' rating on the stock with a target price of Rs 3,440.

"As we get increasing evidence of the success of the Paints business (accelerating its market share gain QoQ with nearly 3x India’s decorative paints industry average growth rate). Grasim is on track to achieve Rs 10,000 crore in revenue in the first 3 years of full capacity coming on-stream and strong positive feedback from channel checks. We value the Paints business on 2.5x FY27E EV/Sales, which translates to 1.5x investment outlay of Rs 12,000 crore2," said Choice Institutional Equities. The brokerage has a target price of Rs 3,500 for the Grasim stock.