India's Grasim drops after Q2 results; paints business expected to scale up

Berger Paints India

18/11/2024 06:01

** Shares of Grasim Industries  GRAS.NS  down 0.3% to 2,517
rupees
    ** Co posted a lower Q2 adjusted profit, dragged by poor
demand in its paints division due to above-average rainfall
    ** Brokerages flag weakness in co's chemicals and paints
business for lacklustre results 
    ** However, scale-up of paints business is on track, and
success in the segment is a trigger for re-rating, analysts at
Jefferies said 
    ** Paints segment is witnessing utilization ramp up, and is
regularly on-boarding dealers, said analysts at Motilal Oswal
    ** Three analysts covering stock cut GRAS's PT post results
while 2 raised PT; avg rating still remains "buy" - LSEG data
    ** Stock up 18% so far this year vs a ~27% and 20% fall
respectively in rival Asian Paints  ASPN.NS  and Berger Paints
 BRGR.NS 

 (Reporting by Ashna Teresa Britto in Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com))