Why are Reliance and Grasim underperforming? Chakri Lokapriya answers
Holding companies always carry a discount and that holding company discount is there in Grasim as well. Capital allocation for a holding company keeps changing depending upon the company’s preferences and therefore, assigning values in sum of the parts is always a problem. Second, large corporates are getting into paints business. Now margins are going to come down dramatically with competition coming.
