Grasim Industries Upgraded to Overweight by Morgan Stanley

Industries, a flagship company of the Aditya Birla Group, has received an upgraded rating from leading brokerage firm Morgan Stanley. The brokerage has shifted its stance on Grasim from 'Equal-weight' to 'Overweight,' citing strong growth prospects in the medium term. Alongside the upgrade, Morgan Stanley has raised its target price to ₹3,500, implying a potential upside of approximately 36% from current levels. The brokerage highlighted Grasim’s paints business, Birla Opus, as a key driver of this optimism. "The paints business has fared better than expected since its launch, with strong market share gains over the past couple of quarters," Morgan Stanley noted. The firm believes Grasim is on track to become a formidable number three player in the paints sector by FY28. Additionally, the brokerage sees further value unlocking in the paints vertical and anticipates sustained moderation in holding company discounts, enhancing Grasim’s valuation appeal. Grasim’s strong fundamentals, coupled with robust performance from its subsidiary UltraTech Cement, have positioned it as a top pick for Morgan Stanley in the cement and building materials space. The stock surged up to 5% to ₹2,742 on June 10, 2025, following the upgrade, reflecting investor confidence in its growth trajectory.