Grasim Industries Intrinsic Value
GRASIM Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹849.84 | ₹679.87 - ₹1019.81 | -70.0% | EPS: ₹32.64, Sector P/E: 12x |
| Book Value Method | asset | ₹7082.00 | ₹6373.80 - ₹7790.20 | +150.0% | Book Value/Share: ₹11603.90, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹5665.60 | ₹5099.04 - ₹6232.16 | +100.0% | Revenue/Share: ₹11854.71, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹5665.60 | ₹5099.04 - ₹6232.16 | +100.0% | EBITDA: ₹32312.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹4804.37 | ₹3843.50 - ₹5765.24 | +69.6% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹849.84 | ₹764.86 - ₹934.82 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹849.84 | ₹764.86 - ₹934.82 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| Graham Defensive Method | conservative | ₹2919.23 | ₹2627.31 - ₹3211.15 | +3.1% | EPS: ₹32.64, BVPS: ₹11603.90 |
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Valuation Comparison Chart
GRASIM Intrinsic Value Analysis
What is the intrinsic value of GRASIM?
Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Grasim Industries (GRASIM) is ₹4804.37 (median value). With the current market price of ₹2832.80, this represents a +69.6% variance from our estimated fair value.
The valuation range spans from ₹849.84 to ₹7082.00, indicating ₹849.84 - ₹7082.00.
Is GRASIM undervalued or overvalued?
Based on our multi-method analysis, Grasim Industries (GRASIM) appears to be trading below calculated value by approximately 69.6%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 0.40 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 3.17 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 3.8% | Industry Standard: 15%+ | Below 10% | Measures shareholder return efficiency |
| Operating Margin | 19.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.32x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
Related Pages for Grasim Industries
Additional stock information and data for GRASIM
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹-17,170 Cr | ₹-28,827 Cr | Negative Cash Flow | 3/10 |
| March 2024 | ₹-10,719 Cr | ₹-22,276 Cr | Negative Cash Flow | 3/10 |
| March 2023 | ₹-12,685 Cr | ₹-19,541 Cr | Negative Cash Flow | 3/10 |
| March 2022 | ₹7,038 Cr | ₹6,512 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹15,075 Cr | ₹11,502 Cr | Positive Free Cash Flow | 8/10 |