CMP: 2735


Grasim Industries Limited is a diversified operating company and part of the Aditya Birla group. The group manufactures a wide range of products, including Viscose Staple Fiber(VSF), cement, sponge iron, chemicals and textiles.

Grasim is a large-cap and a better bet among its peers. Its currently trading at a P/E of little less than 19 with dividend yields of less than 1% in the last 12 months. The company runs at a debt of 814 Crores. The company has focused on debt reduction in the last 5 years which should ensure better times ahead. Revenues have come down from over 8000 Crores to 4500 Crores in the last 5 years. Rising NPM has ensured profits to stay stable at over 1000 Crores in the last 5 years. NPM has risen from 17% to over 25% over the last 5 years. Buy and book profits when Nifty peaks.