Diversified business entity Grasim Ltd. stock today surged by around 4.6%. The stock closed at 1799.95 on NSE.
Earlier, brokerage agency Motilal Oswal has raised Grasim’s rating from ‘neutral’ to ‘buy’. It sets its target price at Rs. 2050. It said that Grasim’s core business i.e., Viscose staple fiber (VSF) and chemicals segments are improving. Recently the US banned cotton imports from Xinjiang (China). As per analysts, this may increase demand for cotton substitutes to meet needs of apparel makers in the US.
It is true that the chemical segment has faced some serious problems due to rising costs. But, experts said that the company got advantage from chemical segment especially, chlorine.
As per experts, the paints segment of Grasim has strong growth potential. The company is just entering into this segment. They said that this foray will diversify the company’s business.
Its subsidiary and cement major player Ultratech still has a strong potential. All these factors cumulatively made this stock to rally lately.