Gravita India
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Gravita India Limited is strategically positioned for growth, driven by management's focus on expanding its copper recycling capabilities and diversifying into high-value lithium-ion battery recycling. Recent commentary highlights the company's commitment to operational efficiency and capacity expansion, with a target to increase installed recycling capacity significantly by FY29. This aligns with Vista's forecast of accelerating revenue growth, supported by robust demand in the non-ferrous metals sector and improving pricing power. However, challenges such as geopolitical supply chain disruptions and rising input costs could impact margins. The company's proactive measures to secure raw materials and enhance operational efficiencies are critical to mitigating these risks. Overall, Gravita's long-term outlook remains positive, bolstered by a disciplined capital allocation strategy and a strong balance sheet. Over the next 12-24 months, key opportunities include the successful integration of the Rashtriya Metal Industries acquisition and the commissioning of new facilities, while watchpoints include execution risks and potential volatility in commodity prices
Why We Like This Stock
- Expansion into copper recycling and lithium-ion battery sectors is expected to drive significant revenue growth
- Management's disciplined capital allocation and operational efficiency initiatives enhance long-term profitability
- Strong regulatory support for organized recycling provides a favorable environment for market share gains
Things To Watch Out For
- Geopolitical tensions have disrupted supply chains, impacting lead segment volumes and capacity utilization
- Rising input costs, particularly in energy and raw materials, pose risks to profit margins
- Execution risks related to the integration of acquisitions and capacity expansion plans could affect operational performance
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,161 | 3,869 | 4,265 | 5,220 | 6,236 |
| Profit Before Tax (Cr.) | 275 | 357 | 448 | 508 | 607 |
| PBT Margin | 8.7% | 9.2% | 10.5% | 9.7% | 9.7% |
| Net Profit (Cr.) | 238 | 305 | 378 | 428 | 511 |
| Earnings Per Share | 31.9 | 41.2 | 51.3 | 58.0 | 69.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 2,200 | 30-Jul-2026 |
| ICICI Securities | ▲ Buy | 2,020 | 29-Jul-2026 |
| Motilal Oswal | ▲ Buy | 2,100 | 29-Jul-2026 |
| Mirae Asset | ▲ Buy | 2,100 | 19-Jun-2026 |
Company Overview
Show Company Profile
Gravita India Limited manufactures and recycles lead metal, lead products, aluminium alloys, and plastic granules in India, the United Arab Emirates, South Korea, and internationally. It operates through Lead Processing, Aluminium Processing, Turn-Key Solutions, and Plastic Manufacturing segments. The company engages in smelting of lead battery scrap/lead concentrate to produce secondary lead metal, such as pure lead, specific lead alloy, lead oxides, and lead products like lead sheets, lead powder, lead shot, etc.; granules, including polypropylene, polycarbonate, HDPE, and ABS; trading of taint tabor and tense aluminium scraps; and manufacture of alloy from melting of aluminium scrap. It also offers consultancy services for recycling operations; turnkey solutions for recycling processes and solutions; procures raw materials which include battery, aluminium, plastic, and rubber scrap; and extended producer responsibility recycler and compliance services. The company also exports its products. Gravita India Limited was incorporated in 1992 and is based in Jaipur, India.