Grasim an underperformer, target Rs 2303: Karvy

Karvy Stock Broking has maintained its underperformer rating on Grasim Industries with a revised price target of Rs 2303 in its report dated August 11, 2009.

"We have revised our earning estimates and price target upward due to delay in cement price decline and cost reduction. However despite earning upgrade; the company is currently trading at PER multiple of 11.3x and EV/EBIDTA multiple of 5.3x on FY11E earning. Looking at bleak outlook for cement and VSF segment; we maintain our underperformer rating with revised target price of Rs 2,303 based on our SOTP valuation," says Karvy Stock Broking's report.

Source : Money Control.