Grasim Industries: Is Birla Opus Giving Tough Competition to Asian Paints by Building a Paint Distribution Moat?
India, Aug. 16 -- A quarter that made headlines had a 21% increase in revenue to Rs48,700+ crore and a 26% increase in EBITDA to Rs8,077 crore. Beneath Grasim's impressive Q1 results, however, is a more complex strategic test: is the enormous amount of money invested in channel expansion creating a high-margin distribution moat, or is it just raising the baseline cost of remaining competitive.
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With a market capitalisation of Rs. 2,21,086.29 crore, the shares of Grasim Industries closed on Friday at Rs. 3,248.70 per share, down 0.25 percent from its previous closing price of Rs. 3, 257.00 apiece. It is trading at a P/E of 19.48.
Consolidated Numbers Show Broad-Based Growth
Grasim's consolidated revenue rose by 21% to Rs. 48,716...
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