Grasim Industries is gaining momentum in a negative market

Grasim Industries is the top gainer in today's session.

The market opened with great pessimism today. S&P 500 closed 2.01% down yesterday. Indian Rupee is also continually depreciating against the USD and trading at an all-time low.

S&P BSE Sensex opened a 1.04% gap down today. At 12.08 pm, the S&P BSE Sensex is trading at 53074. While NIFTY50 is trading down 0.22%. Only 9 out of 50 stocks in NIFTY50 were in the green. Grasim Industries Ltd is one of them. The company is a part of the S&P BSE 100 index and belongs to the cement and cement product industry.

At 12.08 pm, the shares of Grasim Industries are trading at Rs 1349.2 with a 0.42% gain for the day. The stock has fallen more than 30% from its 52-week high which is set in January this year. However, the stock has been in the sideways range for the last month. It seems like the stock is forming a rounding bottom on the charts. One can expect a strong reversal if the stock continues to outperform the markets soon as it is performing today.

Grasim Industries is the flagship company of Aditya Birla Group. The company is the global leader in the production of Viscose Staple Fibre (VSF) and India’s largest player in the business of Chlor-Alkali. It is also involved in the textile and fertilizers businesses.

The company has showcased strong growth in its business. The company has a 5-year sales and net profit CAGR growth of 19% and 22%, respectively. The company has an ROE and ROCE of 10.8% and 12.3% as per the March FY22 period ending. Talking about valuations, the company has a market capitalization of 89,298 crores and its shares are trading at a PE of 11.8x.

More than 27% of the company is held by FIIs and DIIs. The stock has made a 52-week high and low of Rs 1,939 and 1,276.9, respectively.