Prabhudas Lilladher’s Accumulate Call on Grindwell Norton – Target ₹2,113

In a research note dated July 25, 2026, Prabhudas Lilladher turned its gaze back to Grindwell Norton (NSE: GN) and, after a careful look‑through, gave the stock an “Accumulate” rating. The broker also penciled in a target price of Rs 2,113, which, if the market believes the numbers, suggests a decent upside from current levels.

Why the optimism? For starters, the company’s order book appears solid, especially in its core abrasive and power tools segments. Recent contracts with big‑ticket OEMs have helped lift revenues, and management seems comfortable with the pace of new orders. On top of that, Grindwell Norton has been quietly expanding its manufacturing footprint – a couple of new facilities came online last quarter, boosting capacity and, crucially, giving the firm a little more leeway to meet demand spikes.

Another piece of the puzzle is pricing power. With raw material costs easing a bit this year, the firm has been able to retain margins while still offering competitive prices to customers. The combination of stable margins and a modest cost‑down initiative has nudged earnings per share expectations higher in the broker’s earnings model.

From a valuation standpoint, Prabhudas Lilladher uses a forward‑looking DCF that assumes a 12% discount rate and a 10% terminal growth – figures that line up with the broader manufacturing sector outlook. The resultant fair‑value lands around Rs 2,113, which is about 15% above the market price on the day of the report.

That said, the broker does flag a couple of risks. Any slowdown in capital expenditure by the company’s key industrial customers could dent the order inflow. Also, foreign exchange volatility, given the firm’s exposure to imported raw materials, might swing margins if the rupee weakens sharply.

Overall, the sentiment is cautiously bullish. Investors who already own Grindwell Norton are encouraged to hold on, while those on the fence might consider adding a few shares, keeping an eye on the macro‑environment and the company’s quarterly numbers.