According to reports from Moneycontrol, Prabhudas Lilladher has maintained a 'HOLD' rating on Grindwell Norton with a revised target price of ₹1,731. The brokerage's research report dated February 06, 2026, values the stock at a PE of 38x September 2027 earnings, representing a slight adjustment from the earlier target price of ₹1,744. The recommendation reflects the company's mixed quarterly performance and current market conditions.
As reported by Moneycontrol, Grindwell Norton delivered mixed quarterly results with marginal revenue growth of 7.1% YoY to ₹7.5 billion. The company's EBITDA margin expanded by 101 basis points YoY to 18.6% due to better operating leverage, despite lower gross margins. Both key segments, Abrasives and C&P, reported modest revenue growth of 5.2% and 6.3% YoY respectively. The Abrasives segment delivered a 59 basis points YoY improvement in EBIT margin to 12.4%, though this improvement was on a relatively weaker base.
According to the Prabhudas Lilladher report cited by Moneycontrol, the subdued top-line performance can be attributed to lingering effects of Chinese dumping and slower export demand. However, the recent downward revision in US reciprocal tariffs, along with the India-EU FTA, is expected to support a recovery in export growth. The company's front-end investments in capacity expansion position it well relative to peers for future growth opportunities.
As reported by Moneycontrol, the stock is currently trading at a P/E of 38.1x/34.0x on FY27/28E earnings. The brokerage's valuation methodology maintains the 'HOLD' rating while arriving at the revised target price of ₹1,731. The stock's current valuation multiples reflect the company's operational performance and market positioning in the abrasives and C&P segments.
