Grasim Industries’ share price has surged 3% in early trade after the big upgrade from Morgan Stanley. The international brokerage houses have upgraded the stock to Overweight from Equalweight and raised the target price to Rs 3,500 per share. This implies almost 36% upside from current levels. Morgan Stanley has also named Grasim as the ‘top pick.’
The Grasim stock has delivered over 10% returns in 2025 so far, and this is almost as much as the returns delivered over the last 1 year. The share price has seen a sharp recovery from the dip seen in late February.
What’s driving the Morgan Stanley upgrade?
According to Morgan Stanley, “multiple opportunities playing out could lift the share price over the medium term.” They see “further value being unlocked in the paints business.”
With new-age businesses scaling up fast and the holdco discounts continuing to moderate, Grasim is Morgan Stanley’s ‘top pick.’
Grasim files complaint against Asian Paints
An important development with regards to the company, Grsim’s paints division, Birla Opus Paints, has filed a complaint with the CCI or the Competition Commission of India, against Asian Paints. As per the complaint, India’s largest paint manufacturer, Asian Paints, has been involved in “key anti-competitive practices.” The CCI is expected to take a decision on probing complaints about the abuse of ‘dominant market position’ by Asian Paints.
No details have been shared by the CCI yet.
Grasim NCD allotment
The share price of Grasim has also been in focus on account of the recently concluded Rs 1,000 crore worth of non-convertible debentures (NCDs). The NCD was fully paid, unsecured, listed, rated, and redeemable.