Motilal Oswal Recommends 'BUY' on Grasim Industries, Sets Target at Rs 3600

• Motilal Oswal reiterates a 'BUY' rating for Grasim Industries with a target price of INR 3,600.
• The investment case is driven by an improving VSF earnings cycle, stable chemicals margin, and long-term growth in decorative paints.
• VSF business is expected to enter a margin recovery phase in 2HFY26 due to China pricing rebound, stable pulp costs, and high utilization.
• Chemicals business shows steady revenue and EBITDA growth, supported by leadership in chlor-alkali and epoxy resins, despite caustic soda price correction.
• Paints business (Birla Opus) offers scalable growth in an under-penetrated market, with operating leverage expected post-scale achievement.

Why It Matters: Motilal Oswal recommends buying Grasim Industries, projecting significant growth across its key business segments.