Grasim Industries Ltd saw its stock surge by 5% in intraday trade on Tuesday after global brokerage firm Morgan Stanley upgraded the stock to ‘Overweight’, citing strong earnings visibility and valuation comfort.
The share price of the flagship company of the Aditya Birla Group jumped to an intraday high of ₹2,346 on the BSE, marking a significant upswing following the rating revision. The stock outperformed both the BSE Sensex and the BSE FMCG Index, indicating bullish sentiment among institutional investors and retail participants alike.
Morgan Stanley’s View
Morgan Stanley upgraded Grasim Industries from ‘Equal-weight’ to ‘Overweight’, with a revised target price of ₹2,600, implying further upside of about 12% from current levels. According to the note, the brokerage is optimistic about Grasim’s growth trajectory, especially in its paint segment, which is expected to begin commercial operations in FY26.
“We see Grasim as a multi-engine growth story. The upcoming paint business, combined with strong performance in core businesses such as viscose and chemicals, enhances earnings predictability,” said the Morgan Stanley report.
Strong Fundamentals Drive Momentum
Grasim Industries has also gained investor attention thanks to its consistent financial performance. For Q4 FY25, the company reported a consolidated net profit of ₹1,716 crore, up 14% year-on-year, while revenue grew 11% to ₹33,127 crore.
The paint segment, being developed under Birla Opus, has already attracted attention with Grasim committing over ₹10,000 crore in investments — the largest ever in the Indian decorative paint industry.
Stock Performance
- Current Price: ₹2,346 (up 5%)
- 52-week High: ₹2,420
- 52-week Low: ₹1,572
- YTD Performance: +18.6%
- 1-Year Return: +38.2%
The stock has gained over 20% in the last three months, signaling renewed investor confidence as key projects approach operational stages.
What’s Ahead?
Analysts believe that with Morgan Stanley’s endorsement, Grasim shares could continue to attract institutional flows. The upcoming launch of the paint business is seen as a major catalyst that could re-rate the stock, especially in the FMCG and construction-linked sectors.
Also Read: Reliance Power Surges 9% as Investor Sentiment Improves; BSE Power Index Inches Higher
