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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
Grasim Industries Limited is an India-based producer of cellulosic fibers, diversified chemicals, fashion yarn and fabrics producer. Its segments include Cellulosic Fibres, Chemicals, Building Material, Financial Service and Others. Its Cellulosic Fibres segment includes…
Weekly engine runs — movement reflects the numbers, not analyst opinion.
A middling, stagnant business, fully valued — but flagged on governance.
Grasim Industries is scored on the general / industrial framework. It keeps a slim 5.8% of every rupee of sales as net profit. Cash conversion lags the reported profit (CFO/PAT -1.73×) — worth a closer look. Free cash flow is worth about -16.2% of its market value.
Over the last 3 years revenue compounded at 13%/yr and profit at -2%/yr. Book value has grown 11%/yr. Return on equity is a weak 4.8%. In the latest quarter profit grew 4% versus the prior quarter.
At 44× earnings, the stock sits at the 69th percentile of its own 3.6-year range — the middle of where it has historically traded. Today's price implies ~9%/yr earnings growth for a decade. The forensic screen raises 2 red flags: Only ₹-1.49 of cash per ₹1 profit over 4 years — earnings not converting to cash; Share count up 32% over 4 years — heavy equity dilution.
A plain-English restatement of the figures on this page — rules-based, for education and research context, not investment advice or a recommendation.
| Ratio | Company | Sector | Read |
|---|---|---|---|
| P/E | 19.49 | 11.58 | worse |
| P/B | 2.11 | 2.2 | better |
| EV/EBITDA | 11.17 | 32.12 | better |
| ROE | 4.8 | 2.78 | better |
| ROCE | 6.76 | 6.01 | better |
| ROA | 1.98 | 2.01 | worse |
| Quick Ratio | 0.82 | 2 | worse |
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Welspun India | 51.6 | 4.5 | 8.6% |
| Vardhman Textiles | 14.3 | 1.3 | 7.1% |
| Arvind | 28.3 | 3.2 | 10.8% |
Revenue has grown every year across all 4 financial years shown. 13% CAGR over 3 years — steady double-digit compounder.
Revenue is outpacing profit (13% vs -2%) — costs are rising faster than the top line. The latest year saw a +33% swing — check if it's a one-off or structural.
Operating margin has compressed from 12% to 8% — costs or competition are eating into profitability. Margins have declined for 2 consecutive years — watch for a structural cost problem.
ROE at 6% — modest; the capital isn't working hard. Low variance across years — a predictable business that earns steadily on its equity base.
Profit grew faster than EPS (-2% vs -11%) — share dilution is eroding per-share value. -11% EPS CAGR — this is the rate at which each share's claim on earnings is compounding.
4 of 4 years had negative operating cash flow — profitability on paper may not translate to cash. Investing outflows exceed operating cash — the company relies on external funding to finance expansion.
When operating cash keeps pace with reported profit, earnings are cash-backed; a persistent shortfall is a quality flag.
Revenue broadly flat QoQ — stable but not accelerating. Run-rate stepping up — recent quarters average 18% above earlier ones.
Quarterly net margins are expanding (4% → 8%) — profitability per rupee of revenue is improving.
How today's P/E compares to the stock's own historical range. Dashed line = the 3.6y median.
Promoters at 45.2% — dispersed ownership; institutional flows drive the stock. Promoters added 2.0pp over 4 quarters — creeping acquisition signals conviction.
Produced by a rules-based engine over licensed exchange fundamentals — every sentence above is derived from the numbers shown, no analyst or AI opinion involved. Education and research context, not investment advice. We are not SEBI-registered as an Investment Adviser or Research Analyst.