Critical Survey: Grasim Industries (GRSXY) versus Its Rivals

Insider & Institutional Ownership

65.8% of shares of all “TEXTILE – APPAREL” companies are owned by institutional investors. 19.2% of shares of all “TEXTILE – APPAREL” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Grasim Industries and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Grasim Industries	$17.74 billion	$915.25 million	28.01
Grasim Industries Competitors	$6.37 billion	$620.41 million	7.46

Grasim Industries has higher revenue and earnings than its competitors. Grasim Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Grasim Industries has a beta of -0.21, suggesting that its share price is 121% less volatile than the S&P 500. Comparatively, Grasim Industries’ competitors have a beta of 0.87, suggesting that their average share price is 13% less volatile than the S&P 500.

Profitability

This table compares Grasim Industries and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grasim Industries	2.69%	5.25%	1.68%
Grasim Industries Competitors	3.32%	-34.41%	5.65%

Dividends

Grasim Industries pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. Grasim Industries pays out 14.3% of its earnings in the form of a dividend. As a group, “TEXTILE – APPAREL” companies pay a dividend yield of 2.1% and pay out 43.3% of their earnings in the form of a dividend.

Summary

Grasim Industries competitors beat Grasim Industries on 6 of the 11 factors compared.

Grasim Industries Company Profile

Grasim Industries Limited operates in fibre, yarn, pulp, chemicals, textile, fertilizers, and insulators businesses in India and internationally. The company operates through Viscose, Chemicals, Cement, Financial Services, and Others segments. It provides viscose staple fiber, a man-made biodegradable fiber for use in apparels, home textiles, dress materials, knit wear products, and non-woven applications; wood pulp products; viscose filament yarn, a natural fibre for manufacturing fabrics such as georgettes, crepes, chiffons, and others; and textile products, such as linen and wool. The company offers various chemical products, including chlor-alkali and epoxy resin products. In addition, it provides electrical insulators for transmission lines and substations, as well as equipment and railways. Further, the company offers grey cement; white cement; ready mix concrete; and cement-based putty. Additionally, it provides various financial services comprising non-bank financial, life insurance, asset management, housing finance, equity broking, wealth management, general insurance advisory, and health insurance services. The company involved in solar power designing, engineering procurement, and commissioning business. Grasim Industries Limited was incorporated in 1947 and is based in Mumbai, India.