Grindwell Norton Limited stands as a stalwart in the realm of manufacturing, with a diverse portfolio encompassing Abrasives, Ceramics & Plastics, and IT Services. Its contributions resonate not only within the Indian market but also on a global scale, reflecting the profound impact of its offerings. Abrasives play a pivotal role across industries, facilitating precision manufacturing processes and enhancing efficiency. Moreover, Ceramics & Plastics serve as indispensable materials in various sectors, from construction to electronics, underpinning modern infrastructure and innovation.
This article transcends conventional analyses, delving into the intricate narrative that shapes Grindwell Norton’s trajectory. It navigates through market dynamics, the company’s unparalleled performance, and broader economic currents. While numerical projections provide insight, the discussion extends beyond, contemplating the company’s ability to surpass a bold price target of ₹10,000.
About Grindwell
Grindwell Norton Limited, a prominent player in the manufacturing sector, specializes in Abrasives, Ceramics & Plastics, and IT Services. It’s worth noting that the company is backed by the illustrious Compagnie de Saint Gobain, headquartered in Paris, with a significant stake of 51.33% as of March 2021.
In terms of product offerings, Grindwell Norton boasts a diverse range, including Bonded Abrasives, Coated Abrasives, Thin Wheels, and Superabrasives under its Abrasives division. Its Ceramics & Plastics segment encompasses Performance Ceramics & Refractories, ADFORS business, Performance Plastic business, and Silicon Carbide business through its subsidiary in Bhutan.
Under its umbrella of brands, the company proudly presents Norton, Orient Abrasives, Chemfab, Omniseal, Norseal, Rulon, among others. These brands resonate across various industries, from steel and automotive to aerospace and general engineering.
Geographically, Grindwell Norton maintains a strong presence both domestically and internationally, with approximately 83% of revenue generated from domestic operations and the remainder from exports in FY22.
With manufacturing facilities strategically located across India, including Mora, Bengaluru, Tirupati, Nagpur, Himachal Pradesh, Vadodara, and Bhutan, the company ensures efficient production and distribution of its products.
Operational highlights include ongoing investments in modernization and expansion, such as the construction of new facilities and acquisitions like PRS Permacel, providing a platform for growth in high-demand segments like EV, Railways, Aerospace, Defense, and Steel.
Recent News Around Grindwell
In anticipation of the upcoming election results, Prabhudas Lilladher (PL) forecasts that the Nifty may reach 25,800. As part of their analysis, they have identified Grindwell Norton among the potential investment opportunities. Grindwell Norton, a leading player in the abrasives and ceramics industry, is highlighted alongside other prominent stocks.
BJP leader Amit Shah has declared substantial investments, including more than Rs 1 crore worth of shares in Grindwell Norton, among other companies. This suggests confidence in the company’s potential and performance.
Grindwell Norton has issued compliance certificates under Regulation 40(9) and Regulation 7(3) of SEBI (LODR) Regulations, 2015, for the year ended March 31, 2024. These certificates affirm the company’s adherence to regulatory requirements, enhancing investor trust and compliance.
Grindwell Q3 Fy2024 Key Points And Summary:
- Revenue:
- Grindwell Norton Ltd’s revenue increased by 10.03% compared to the same period last year, reaching ₹674.40 crore.
- However, there was a slight decline of -2.28% in revenue on a quarterly basis.
- Net Profits:
- The company’s net profits rose by 14.93% compared to the same period last year, amounting to ₹92.16 crore.
- Nevertheless, there was a decline of -9.55% in net profits on a quarterly basis.
- Net Profit Margins:
- Grindwell Norton Ltd’s net profit margins improved by 4.45% compared to the same period last year, reaching 13.67%.
- However, there was a decrease of -7.44% in net profit margins on a quarterly basis.
Grindwell Share Price Target 2024 To 2030
Grindwell Share Price Target 2024
Month | Maximum Price (₹) | Minimum Price (₹) |
---|---|---|
April | ₹2,311.82 | ₹2,010.28 |
May | ₹2,277.66 | ₹1,980.57 |
June | ₹2,359.65 | ₹2,051.87 |
July | ₹2,336.06 | ₹2,031.35 |
August | ₹2,429.50 | ₹2,112.61 |
September | ₹2,526.68 | ₹2,197.11 |
October | ₹2,477.14 | ₹2,154.03 |
November | ₹2,551.45 | ₹2,218.65 |
December | ₹2,615.24 | ₹2,274.12 |
In 2024, Grindwell’s share price is anticipated to fluctuate within a range, with projections suggesting a gradual upward trend. In April, the share price is expected to reach a maximum of ₹2,311.82 and a minimum of ₹2,010.28. As we progress into May, the anticipated maximum price is ₹2,277.66, while the minimum is expected to be around ₹1,980.57. June may witness a peak of ₹2,359.65 and a low of ₹2,051.87. This trend continues throughout the year, with an expected maximum in December of ₹2,615.24 and a minimum of ₹2,274.12. Overall, the expected price will experience fluctuations but is poised to show an upward trajectory.
Grindwell Share Price Target 2025
when | Maximum Price | Minimum Price |
January 2025 | ₹2,667.54 | ₹2,051.96 |
February 2025 | ₹2,735.94 | ₹2,104.57 |
March 2025 | ₹2,842.64 | ₹2,186.65 |
April 2025 | ₹2,786.90 | ₹2,143.77 |
May 2025 | ₹2,705.73 | ₹2,081.33 |
June 2025 | ₹2,827.49 | ₹2,174.99 |
July 2025 | ₹2,772.05 | ₹2,132.35 |
August 2025 | ₹2,857.78 | ₹2,198.29 |
September 2025 | ₹2,957.80 | ₹2,275.23 |
October 2025 | ₹3,034.71 | ₹2,334.39 |
November 2025 | ₹3,110.58 | ₹2,392.75 |
December 2025 | ₹3,188.34 | ₹2,452.57 |
In 2025, Grindwell’s share price is expected to show significant growth, reaching new highs throughout the year. In January, the maximum price is anticipated to be ₹2,667.54, with a minimum of ₹2,051.96. February is expected to see further increases, with a maximum of ₹2,735.94 and a minimum of ₹2,104.57. As we move into March, the maximum price is expected to rise to ₹2,842.64, with a minimum of ₹2,186.65.
The upward trajectory continues in April, with an expected maximum of ₹2,786.90 and a minimum of ₹2,143.77. May may see a slight dip, with a maximum of ₹2,705.73 and a minimum of ₹2,081.33. However, June onwards, the prices are projected to surge again, with a peak of ₹3,188.34 in December and a minimum of ₹2,452.57.
Grindwell Share Price Target 2026 To 2030
Year | Maximum Price (₹) | Minimum Price (₹) |
---|---|---|
2026 | ₹3,347.76 | ₹2,343.43 |
2027 | ₹3,682.53 | ₹2,577.77 |
2028 | ₹5,155.55 | ₹2,577.77 |
2029 | ₹4,463.68 | ₹2,231.84 |
2030 | ₹5,802.78 | ₹4,061.94 |
Grindwell’s Financial Condition (Last 5 Years)
Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
Sales + | 1,598 | 1,580 | 1,638 | 2,013 | 2,541 | 2,660 |
Expenses + | 1,326 | 1,315 | 1,314 | 1,612 | 2,040 | 2,138 |
Operating Profit | 272 | 265 | 324 | 400 | 501 | 523 |
OPM % | 17% | 17% | 20% | 20% | 20% | 20% |
Other Income + | 35 | 40 | 51 | 53 | 53 | 73 |
Interest | 2 | 4 | 3 | 4 | 8 | 8 |
Depreciation | 45 | 58 | 54 | 53 | 60 | 67 |
Profit before tax | 260 | 243 | 317 | 396 | 486 | 521 |
Tax % | 35% | 24% | 25% | 25% | 26% | |
Net Profit + | 169 | 184 | 238 | 295 | 362 | 390 |
EPS in Rs | 15.1 | 16.48 | 21.6 | 26.7 | 32.69 | 35.24 |
Dividend Payout % | 40% | 46% | 44% | 45% | 44% |
FAQS
Should one invest in Grindwell?
Grindwell Norton Limited presents a compelling investment opportunity backed by its strong financial performance and strategic positioning in the market. The company, engaged in manufacturing abrasives, ceramics & plastics, and providing IT services, has demonstrated robust growth over the past years. With a market capitalization of ₹23,136 crore and a current price of ₹2,090 (as of 26th April), Grindwell Norton exhibits stability and potential for further expansion.
Key financial metrics reflect the company’s strength: it has delivered a commendable profit growth of 19.6% CAGR over the last five years and maintains a healthy dividend payout of 44.4%. Moreover, the company’s debt-free status enhances investor confidence.
While the stock is trading at 12.6 times its book value, its Price to Earnings (P/E) ratio stands at 59.4, indicating potential for value realization. Grindwell Norton’s Return on Capital Employed (ROCE) at 27.6% and Return on Equity (ROE) at 20.7% further underline its efficient utilization of resources and ability to generate returns for shareholders.
Comparative analysis with peers in the capital goods sector showcases Grindwell Norton’s favorable position, with strong financials and steady growth. With its consistent performance and promising outlook, investing in Grindwell Norton appears to be a prudent choice for investors seeking long-term growth and stability in their portfolios.
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