Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by strategic capacity expansion and diversification efforts.
Basis of our Recommendation
Gravita is positioned for strong growth with a projected 20-25% volume CAGR and 35% earnings CAGR over the next three years, bolstered by significant capacity expansion and strategic acquisitions, particularly in copper recycling. The company aims to enhance its market share through aggressive investments and diversification into adjacent recycling sectors. However, risks include potential delays in capacity expansion and raw material price fluctuations.
Why We Like This Stock
- Targeting 20-25% volume CAGR and 35% earnings CAGR over the next three years
- Significant CapEx plan of Rs 1,700 Cr focused on copper recycling
- Projected installed recycling capacity to exceed 8,00,000 MTPA by FY29
Things To Watch Out For
- Potential delays in capacity expansion
- Price fluctuations in raw materials and finished products
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,161 | 3,869 | 4,265 | 5,085 | 6,028 |
| Profit Before Tax (Cr.) | 275 | 357 | 448 | 536 | 635 |
| PBT Margin | 8.7% | 9.2% | 10.5% | 10.5% | 10.5% |
| Net Profit (Cr.) | 238 | 305 | 378 | 451 | 534 |
| EPS | 31.8 | 41.1 | 51.1 | 60.9 | 72.2 |
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.