Gravita India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Gravita India is navigating a transformative phase, with management emphasizing a strategic pivot towards copper recycling and value-added products, which are expected to drive revenue growth and enhance margins. The recent acquisition of Rashtriya Metal Industries positions the company to capitalize on higher-margin copper products, while ongoing capacity expansions aim to increase recycling capabilities significantly by FY29. Despite facing near-term challenges from geopolitical tensions affecting lead volumes, management's proactive measures in establishing direct procurement networks and focusing on operational efficiencies are expected to mitigate risks. Vista's financial outlook reflects an anticipated acceleration in revenue growth, supported by stable margins and a strong balance sheet. The company's ambitious capital expenditure plan of INR 1,680 Cr through FY29 underscores its commitment to long-term growth, with a target of achieving a PAT CAGR of 25-30%. Industry dynamics, particularly rising demand for non-ferrous metals and improving pricing power, further bolster Gravita's position. Key opportunities include the scaling of the copper segment and the successful integration of new facilities, while watchpoints include execution risks and potential raw material price volatility over the next 12-24 months
Why We Like This Stock
- Strategic acquisition of Rashtriya Metal Industries enhances Gravita's capabilities in high-margin copper products
- Ambitious capacity expansion plans are set to significantly increase recycling capabilities by FY29
- Proactive management strategies are mitigating near-term geopolitical risks and supporting operational efficiencies
Things To Watch Out For
- Geopolitical tensions are impacting lead segment volumes and capacity utilization
- Execution risks associated with the integration of new facilities and expansion plans could affect performance
- Potential volatility in raw material prices may pressure margins and working capital cycles
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,161 | 3,869 | 4,265 | 5,275 | 6,813 |
| Profit Before Tax (Cr.) | 275 | 357 | 448 | 468 | 621 |
| PBT Margin | 8.7% | 9.2% | 1050.4% | 8.9% | 9.1% |
| Net Profit (Cr.) | 238 | 305 | 378 | 393 | 522 |
| Earnings Per Share | 31.9 | 41.2 | 51.3 | 53.3 | 70.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 2,200 | 30-Jul-2026 |
| ICICI Securities | ▲ Buy | 2,020 | 29-Jul-2026 |
| Mirae Asset | ▲ Buy | 2,100 | 19-Jun-2026 |
| Motilal Oswal | ▲ Buy | 2,100 | 29-Jul-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.