ChoiceBroking Pick of the week: Grasim Industries Limited.

1. Grasim Industries Limited.
 Grasim Industries Limited was incorporated in 1948; Grasim is the largest exporter of Viscose Rayon Fiber in
the country, with exports to over 50 countries. Grasim is headquartered in Nagda, Madhya Pradesh and also
has a plant at Kharach (Kosamba, Gujarat) and Harihar, Davangere in the state of Karnataka
 Indo-Thai Synthetics Company Ltd was incorporated in 1969 in Thailand, started operations in 1970, this was
Aditya Birla Group's first foray into international venture. Aditya Birla Group incorporated P.T. Elegant
Textiles in 1973 in Indonesia. Thai Rayon incorporated in 1974, this was the second company in Thailand,
operating in Viscose Rayon Staple Fiber. Century Textiles Co. Ltd. is taken over by Aditya Birla Group in 1974;
this company is a weaving and dyeing plant manufacturing and exporting variety of synthetic fabrics. PT
Sunrise Bumi Textiles incorporated in 1979, it produces yarn exported over 30 countries in 6 continents. P.T
Indo Bharat Rayon incorporated in 1980 produces Viscose Staple Fiber in Indonesia.
 AV Cell Inc., a joint venture between Aditya Birla Group and Tembec, Canada, established operations in 1998
to produce softwood and hardwood pulp for the purpose of internal consumption among different units of
the Group..
 Technical Outlook
 On daily chart, recently the stock has given positive breakout of its upper band of “Symmetrical Triangle
Pattern” with above average volume, which shows that further upside movement can be seen from the
present level.
 If we take broader base, then we can see that stock has been trading on “Higher Bottom Formation” on
weekly chart, which shows that stock could give the same identical movement in coming trading sessions.
 Apart from this, recently stock has taken support of its 100 Day Moving Average which is placed at 3609 level,
and gives good bounce back, which indicates that medium to short term trend is up, and could further propel
upside movement.
 Even on weekly chart, stock has been trading above its 50 Week Moving Average which is placed at 3610 level
since last seven weeks, which is good sign for upside momentum.
 A weekly momentum indicators RSI reading is at 57.40 level with positive crossover, meanwhile, it is about to
give positive breakout of its upper band of “Broadening Falling Wedge” Pattern, which point out for positive
breath in the stock.
 Based on the above mentioned technical setup, we believe that the stock could reach towards 4150 levels in
few trading sessions.
Company GRASIM
Recommendation Buy
Sector : Diversified
CMP :
3734 & Buy Upto
3690
Price Potential : 4150
Stop Loss (Closing Basis): 3550
Mkt Cap (Rs. Cr.): 34,278
TTM EPS (Rs.) 197.40
TTM Sales (Rs. Cr.) 33,400
BVPS (Rs.) 2,623.26
Reserves (Rs. Cr.) 24,007
P/BV 1.42
PE 18.90
Bloomberg Code : GRASIM:IN
Reuters Code : GRAS:NS
TW = Twelve Months
TTM= Trailing 12 months
SEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Pick of the Week: Grasim Industries limited.
28th Nov, 2015
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2. Pick of the Week: Grasim Industries limited.
28th Nov, 2015
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual FundsSEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
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Vikas Chaudhari
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DN: cn=Vikas Chaudhari, o=Choice Equity Broking Pvt Ltd,
ou=Research Department,
email=vikas.chaudhari@choiceindia.com, c=IN
Date: 2015.11.28 17:53:03 +05'30'