Grasim Industries Shares Surge Post Q4 Result, 500% Dividend Announcement; Should You Buy, Sell or Hold?

Grasim Industries shares surged on Friday, a day after the BSE 500 company reported a 9% year-on-year increase in its net profit to Rs 2973.26 crore during the fourth quarter of the financial year 2024-25. The company has also announced a 500% dividend for its shareholders.

Shares of Grasim Industries surged as high as 2% during the opening hours of the Indian stock market today. The company scrip is trading 1.03% higher at Rs 2702.7 per share on BSE at 10:40 am. Grasim stock had touched an intraday high mark of Rs 2746 apiece on BSE on Friday. Its market capitalisation stood at Rs 1,83,920.38 crore.

Grasim Stock Price Recommendation

Grasim's Q4FY25's EBITDA failed to meet expectations because of its lower-than-expected profitability in VSF and chemical segments, noted Motilal Oswal in its report released on Friday. The brokerage has maintained a 'Buy' rating for Grasim Stock. However, it will review its rating for the scrip after Grasim Industries' earnings call scheduled for today.
"We have a BUY rating on the stock based on the SoTP valuation. We will review our assumptions after the concall on 23rd May'25," stated MOFL.

Antique Stock Broking has retained a 'Buy' rating for the Grasim Industries with a target price of Rs 2875 per share, indicating a nearly 8% upside in the company scrip value.

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Grasim Industries Q4 Result Highlights

Grasim Industries had reported a net profit of Rs 2973.26 crore for the quarter under review. Its total consolidated income stood at Rs 44,650.67 crore in Q4FY25, against Rs 35,750.34 crore reported in the December quarter. Its revenue from the chemical segment increased to Rs 2,301.51 crore during the quarter under review, against Rs 2,226.27 crore reported during the quarter ending December. Revenue from financial services segment stood at Rs 12,196.79 crore against Rs 9,395.74 crore reported in the third quarter of FY25.

Company's EBITDA for FY25 stood at Rs 20,023 crore. Grasim Industries revenue in the cellulose fibre segment was up 9% year on year, impacted by higher key input costs. Its CFY volumes grew by 3% YoY and realisations continued to remain impacted by low priced dumping from China.

As per the company's press release, Grasim Industries' UltraTech's total capacity reached 190.16 MTPA, aim to reach over 215 MTPA by FY27. Company's domestic grey cement sales volume surged by 10% annually to 36.46 million tons. Meanwhile, its domestic operating EBITDA/ton grew by 32% QoQ (+7% YoY) at ₹1,270 led by operating efficiencies and lower input, fuel & power costs.

Grasim Industries share in the decorative paints increased significantly in FY25 with its venture Birla Opus paints.The company commissioned its 5th plant at Mahad and its Kharagpur plant is set to be commissioned in first half of FY26.

Grasim Industries Dividend

The company announced a 500% dividend for its shareholders in Q4FY25. The company's board of director "recommended a dividend of ₹ 10/- (Rupees Ten only) per equity share of face value of ₹ 2/- each (on fully paid-up shares and partly paid-up shares in proportion to their share in the paid-up share capital) for the financial year ended 31st March 2025, subject to the approval of shareholders at the ensuing Annual General Meeting ("AGM") of the Company."

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