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Updated: 30/10/2009 | 12:00 AM IST
Strong quarterly results strengthen Grasim
Capital Market
Friday, October 30, 2009 (New Delhi)
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Meanwhile, the BSE Sensex was up 84 points, or 0.52%, to 16,136.72.

On BSE, 1.02 lakh shares were traded in the counter as against an average daily volume of 46,974 shares in the past one quarter.

The stock hit a high of Rs 2253 and a low of Rs 2160 so far during the day. The stock had hit a 52-week high of Rs 2938 on 28 July 2009 and a 52-week low of Rs 872 on 2 December 2008.

Ahead of Q2 September 2009 results, the stock had declined 2.50% in two trading sessions to Rs 2133.15 on 29 October 2009 from a recent high of Rs 2187.85 on 27 October 2009.

The large-cap stock had underperformed the market over the past one month till 29 October 2009, falling 23.51% as compared to the Sensex's 4.75% fall. It had also underperformed the market in the past one quarter, declining 21.65% as compared to the Sensex's return of 5.79%.

The company's equity capital is Rs 91.67 crore. Face value per share is Rs 10.

The current price of Rs 2210.90 discounts the company's Q2 September 2009 annualized EPS of Rs 437.19, by a PE multiple of 5.06.

Grasim Industries' net sales rose 11% to Rs 2983.77 crore in Q2 September 2009 over Q2 September 2008. On a consolidated basis, the company's net profit surged 60.51% to Rs 780.77 crore on 5.24% rise in net sales to Rs 4682.28 crore in Q2 September 2009 over Q2 September 2008. The company declared its after trading hours on Thursday, 29 October 2009.

On a standalone basis, the company's net profit zoomed on the back of 175.11% spurt in other income to Rs 42.01 crore in Q2 September 2009 over Q2 September 2008.

The company's cement production rose 27% to 4.63 million tonnes and sales increased 23% to 4.56 million tonnes in Q2 September 2009 over Q2 September 2008.

The company is expecting cement demand to grow by around 9% per annum during the next five years, which would be aided by the Government's initiative to boost rural development, infrastructure and housing.

Early this month, Grasim Industries said it will hive off the cement business into unit Samruddhi Cement as a part of a plan to bring the Aditya Birla Group's cement business under one roof

Samruddhi will issue one new equity share to Grasim shareholders for every share held in Grasim and the process is expected to be completed in four to six months. The board of directors of UltraTech Cement early this month gave in-principle approval for a proposal to absorb Samruddhi Cement.

Grasim is a diversified firm engaged in manufacturing and marketing cement, fibre & pulp, sponge iron, textile, chemicals and other.

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