The shares of this market chief are in focus after ICICI Securities has initiated a robust BUY name on this. On this article, we’ll attempt to perceive the rationale behind this funding.
With a market capitalization of Rs 13,936 crores, the shares of Gravita India Ltd are at present buying and selling at Rs 1,895 per share, down by 30 p.c from its 52-week excessive of Rs 2,700 per share. Over the past 5 years, the inventory has delivered a multibagger return of 5,463.40 p.c.
Funding Rationale
ICICI Securities, in its analysis report dated 6 Could 2025, acknowledged that Gravita India’s efficiency was in step with what the brokerage had anticipated and has assigned a goal of Rs 2,670 with an upside of 45 p.c.
The corporate’s This fall FY25 EBITDA and PAT got here in 1 p.c and three p.c forward of expectations, respectively. Lead and aluminium volumes elevated by 12.3 p.c and 62 p.c YoY respectively.
Whereas worldwide enterprise contributed 32 p.c to income and 25 p.c to PAT, inter-company sourcing and Mozambique plant points hampered margins. In FY25, the corporate registered 46 p.c value-added product gross sales and a 60 p.c YoY enhance in native scrap sourcing. Capability elevated by 93,000 tonnes with Rs 107 crores of capex.
For the long run, the corporate talked about that it goals for over 25 p.c quantity CAGR, over 35 p.c PAT development, over 25 p.c RoIC, with 50 p.c of income coming from value-added merchandise and over 30 p.c from non-lead segments. Because of administration’s bullish feedback, the brokerage expects its capability to extend by 2.06 occasions by to FY28E at a capex of Rs 1500 crores.
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Monetary Highlights
Gravita India Ltd reported a consolidated income of Rs 3,869 crores in FY25, up by 22.4 p.c from Rs 3,161 crores in FY24. On a year-on-year (YoY) foundation, income rose by 20.16 p.c to Rs 1,037 crores in This fall FY25 from Rs 863 crores in This fall FY24. On a quarter-on-quarter (QoQ) foundation, it elevated by 4.12 p.c to Rs 1,037 crores in This fall FY25 from Rs 996 crores in Q3 FY25.
It posted a web revenue of Rs 313 crores in FY25, up by 29.34 p.c from Rs 242 crores in FY24. Web revenue grew by 37.68 p.c YoY to Rs 95 crores in This fall FY25 from Rs 69 crores in This fall FY24. On a QoQ foundation, it elevated by 21.79 p.c to Rs 95 crores in This fall FY25 from Rs 78 crores in Q3 FY25.
Concerning the firm
Gravita India Restricted is a recycling and manufacturing agency that offers in lead, aluminium, and plastic recycling and manufacturing. The agency produces merchandise akin to pure lead, lead alloys, aluminium alloys, and plastic recycled granules. It additionally offers in turnkey recycling options and consultancy providers, and buying and selling in scrap materials within the type of batteries, aluminium, plastic, and rubber.
Written by Satyajeet Mukherjee
Disclaimer
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