Grasim Industries Limited
Grasim Industries Limited Fundamental Analysis
Grasim Industries Limited (GRASIM.BO) shows weak financial fundamentals with a PE ratio of 41.70, profit margin of 2.47%, and ROE of 3.37%. The company generates $1706.0B in annual revenue with strong year-over-year growth of 13.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -320.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GRASIM.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakGRASIM.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakGRASIM.BO trades at a premium to fair value.
Growth Score
ModerateGRASIM.BO shows steady but slowing expansion.
Financial Health Score
WeakGRASIM.BO carries high financial risk with limited liquidity.
Profitability Score
WeakGRASIM.BO struggles to sustain strong margins.
Key Financial Metrics
Is GRASIM.BO Expensive or Cheap?
P/E Ratio
GRASIM.BO trades at 41.70 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GRASIM.BO's PEG of 13.94 indicates potential overvaluation.
Price to Book
The market values Grasim Industries Limited at 1.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.05 times EBITDA. This is generally considered low.
How Well Does GRASIM.BO Make Money?
Net Profit Margin
For every $100 in sales, Grasim Industries Limited keeps $2.47 as profit after all expenses.
Operating Margin
Core operations generate 25.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.37 in profit for every $100 of shareholder equity.
ROA
Grasim Industries Limited generates $0.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Grasim Industries Limited generates limited operating cash flow of $-80.15B, signaling weaker underlying cash strength.
Free Cash Flow
Grasim Industries Limited generates weak or negative free cash flow of $-155.56B, restricting financial flexibility.
FCF Per Share
Each share generates $-229.29 in free cash annually.
FCF Yield
GRASIM.BO converts -8.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How GRASIM.BO Stacks Against Its Sector Peers
| Metric | GRASIM.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.70 | 24.02 | Worse (Expensive) |
| ROE | 3.37% | 867.00% | Weak |
| Net Margin | 2.47% | -103659.00% (disorted) | Weak |
| Debt/Equity | 3.09 | 0.51 | Weak (High Leverage) |
| Current Ratio | 0.91 | 5.08 | Weak Liquidity |
| ROA | 0.80% | -6488.00% (disorted) | Weak |
GRASIM.BO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Grasim Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
97.17%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-16.19%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
23.13%
Industry Style: Cyclical, Commodity, Value
High Growth