Grasim stock hits fresh high after Birla Opus launch

Grasim Industries Ltd shares reached an all-time high intraday on February 22 as it announced the launch of its paint business (Birla Opus) and the opening of three new plants. The stock hit a lifetime high of Rs 2,244.95 and closed 0.4 percent higher at Rs 2,201.10 on BSE, while the Sensex rose 0.74 points to 73158.24.

The stock ended higher for the seventh straight session. So far this year, the stock is up 3.5 percent, it jumped 24 percent in 2023. Aditya Birla chairman, Kumar Mangalam Birla, inaugurated three Birla Opus paint plants in Haryana, Punjab and Tamil Nadu on February 22 from the Panipat plant.

Jefferies noted on February 22 that Grasim Industries' entry into the paint market could impact shares and margins in the industry. The company's push for the second spot is expected to drive increased competition from other industry players.

Grasim Industries' entry into the paint sector with 49 percent of its Rs 4,900 crore capex allocated to this business is set to heighten competition. The company plans to focus on larger cities first, leveraging its strong distribution in cement and putty.