Gravita India Ltd, a prominent player in the Indian market, holds a distinguished position as one of the largest lead producers, boasting a versatile business portfolio, the company has solidified its standing as an industry expert.
In the fiscal year 2022, Gravita India’s product spectrum is thoughtfully organized into five verticals: Lead Recycling, Aluminum Recycling, Plastic Recycling, Rubber Recycling, and Turnkey Solutions. Noteworthy is the revenue mix for FY22, emphasizing the company’s primary emphasis on lead-related products, commanding a significant 88.71% share. This is followed by Aluminum at 6.57%, Plastic Products at 3.30%, and Turnkey Projects at 1.35%. A substantial facet of Gravita India’s financial landscape is the noteworthy contribution of value-added products, constituting a robust 42% of the total revenue.
With a promising forecast, the company is poised for substantial growth, targeting an impressive annual increase of 25.6% in earnings and a substantial 23.5% surge in revenue. Let’s explore it’s anticipated future target, and analyze its past performance, profit and financial condition.
About Gravita India Ltd
Gravita India Ltd, a pioneering force in the Indian lead production landscape, was established in 1992 in Jaipur. With a foundation built on a commitment to environmentally friendly processes, the company has emerged as one of the largest lead producers in the country, steered by a dedicated team of over 500 forward-looking professionals.
At the heart of Gravita’s operations is a strong network, driven by the company’s unwavering commitment to core values such as fairness, trust, respect, passion, and nurturing relationships. These values serve as guiding principles, shaping the company’s business strategies and growth trajectory.
Gravita aspires to be the most valuable company in the global recycling space, with a vision set on achieving a spot among the top 5 global recycling companies by 2026. This ambitious mission is fueled by a commitment to diversification, sustainable growth, eco-friendly technological innovation, and value creation for all stakeholders.
Gravita’s quality-conscious approach is a testament to its dedication to becoming a world leader in the recycling industry. The company’s visionary goals include achieving a 50% or more contribution from value-added products and securing 25% or more of non-lead business revenue by FY27. Additionally, Gravita is set to explore new recycling verticals in Rubber, Lithium, Steel, and Paper.
With an eye on the future, Gravita has strategically planned a CAPEX (capital expenditure) of Rs. 600 crores or more by FY26, focusing on capacity expansion up to 435,000 MT. This forward-looking approach positions Gravita India Ltd as a key player in the evolution of sustainable and innovative recycling practices.
Recent News Around Gravita India Ltd
- Gravita India Ltd, established in 1992, is a major lead producer with a business spanning lead recycling, aluminum, plastic, and turnkey projects.
- The company’s expertise includes recycling used batteries, cable scrap, aluminum scrap, and plastic scrap.
- Gravita’s diversified product portfolio encompasses lead, aluminum, plastic, rubber, and turnkey solutions.
- The market cap stands at ₹7,947 Cr, with a current stock price of ₹1,151 and a high/low range of ₹1,167/342.
- The company boasts a robust financial profile with a stock P/E of 35.5, a book value of ₹96.8, and impressive ROCE and ROE at 31.6% and 42.0%, respectively.
Gravita India Ltd Q1 Fy2024 Key Points And Summary:
- PAT margin in India for Q2 FY24 stands at 52%, while overseas PAT margin is robust at 75%.
- Over the last 5 years, the company has achieved an impressive 35% revenue CAGR and a strong PAT CAGR.
- The company holds an A+ external credit rating from ICRA, ensuring financial stability and credibility.
- With a 12-year history of sustainable dividend payouts, the company has demonstrated consistency in shareholder returns.
- EBITDA margins remain strong, supported by a back-to-back hedging mechanism and consistent locking of margins.
- Notably, there has been a significant reduction in debt, amounting to over ₹40 Cr in FY 2023.
- The capital employed in the overseas market has steadily increased, indicating a strategic and robust international presence.
- Quarterly highlights for Q2 FY24 reveal a substantial EBITDA of ₹836 Cr and a healthy EBITDA margin of 7.40%.
Gravita India Ltd Share Price Target 2024 To 2030
Gravita India Ltd Share Price Target 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹1,259.43 | ₹1,095.15 |
| February 2024 | ₹1,285.13 | ₹1,117.50 |
| March 2024 | ₹1,311.36 | ₹1,140.31 |
| April 2024 | ₹1,273.16 | ₹1,107.10 |
| May 2024 | ₹1,254.35 | ₹1,090.74 |
| June 2024 | ₹1,299.50 | ₹1,130.00 |
| July 2024 | ₹1,286.51 | ₹1,118.70 |
| August 2024 | ₹1,337.97 | ₹1,163.45 |
| September 2024 | ₹1,391.49 | ₹1,209.99 |
| October 2024 | ₹1,364.20 | ₹1,186.26 |
| November 2024 | ₹1,405.13 | ₹1,221.85 |
| December 2024 | ₹1,440.26 | ₹1,252.40 |
Reviewing the anticipated stock prices for the entire expected year of 2024, we can anticipate observing the highest and lowest prices for each of the twelve months:
Gravita ltd peak price for the expected year is expected to be recorded in December 2024, reaching ₹1,440.26
Conversely, the lowest price point is expected to be noted in February 2024, at ₹1,095.15.
Our analysis of stock prices for the year 2024 is expected to demonstrate notable fluctuations in prices across the months.
These fluctuations are expected to reflect the dynamic nature of the market and underline the importance of careful timing and strategy in investment decisions over the course of the expected year.
Gravita India Ltd Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹1,469.06 | ₹1,130.05 |
| February 2025 | ₹1,506.73 | ₹1,159.02 |
| March 2025 | ₹1,565.49 | ₹1,204.23 |
| April 2025 | ₹1,534.80 | ₹1,180.61 |
| May 2025 | ₹1,490.09 | ₹1,146.23 |
| June 2025 | ₹1,557.15 | ₹1,197.81 |
| July 2025 | ₹1,526.62 | ₹1,174.32 |
| August 2025 | ₹1,573.83 | ₹1,210.64 |
| September 2025 | ₹1,628.92 | ₹1,253.01 |
| October 2025 | ₹1,671.27 | ₹1,285.59 |
| November 2025 | ₹1,713.05 | ₹1,317.73 |
| December 2025 | ₹1,755.88 | ₹1,350.67 |
Gravita India Ltd highest price for the year is expected to be recorded in December 2025, reaching ₹1,755.88
The lowest price point is expected to be observed in January 2025, at ₹1,130.05.
This analysis is expected to highlight the substantial price fluctuations that will characterize the year, emphasizing the need for investors to monitor market trends and adopt informed investment strategies.
Gravita India Ltd Share Price Target 2026 To 2030
| Year | Maximum Price | Minimum Price |
| 2026 | ₹1,843.67 | ₹1,290.57 |
| 2027 | ₹2,028.04 | ₹1,419.63 |
| 2028 | ₹2,839.25 | ₹1,419.63 |
| 2029 | ₹2,458.23 | ₹1,229.11 |
| 2030 | ₹3,195.69 | ₹2,236.98 |
- In 2026, prices are projected to fluctuate between ₹1,290.57 (minimum in January) and ₹1,843.67 (maximum in December).
- Moving to 2027, the range is expected to be between ₹1,419.63 (minimum) and ₹2,028.04 (maximum).
- For 2028, anticipate prices ranging from ₹1,419.63 to ₹2,839.25.
- In 2029, prices may vary between ₹1,229.11 and ₹2,458.23.
- Looking ahead to 2030, the expected range widens, spanning from ₹2,236.98 (minimum) to ₹3,195.69 (maximum).
These projections provide insights into the potential price movements, aiding investors in making informed decisions based on anticipated highs and lows for each year.
Gravita India Ltd Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Sales + | 1,242 | 1,348 | 1,410 | 2,216 | 2,801 | 3,078 |
| Expenses + | 1,180 | 1,239 | 1,288 | 1,998 | 2,594 | 2,815 |
| Operating Profit | 62 | 109 | 121 | 217 | 207 | 263 |
| OPM % | 5% | 8% | 9% | 10% | 7% | 9% |
| Other Income + | 5 | -12 | 1 | 6 | 88 | 64 |
| Interest | 26 | 31 | 31 | 38 | 44 | 42 |
| Depreciation | 12 | 18 | 20 | 21 | 24 | 29 |
| Profit before tax | 30 | 47 | 71 | 165 | 228 | 256 |
| Tax % | 34% | 22% | 20% | 10% | 10% | |
| Net Profit + | 19 | 37 | 57 | 148 | 204 | 226 |
| EPS in Rs | 2.25 | 4.81 | 7.6 | 20.19 | 29.13 | 32.43 |
| Dividend Payout % | 13% | 15% | 14% | 15% | 15% |
Gravita India Ltd has showcased impressive financial growth from March 2019 to March 2023, characterized by a consistent increase in sales, reaching ₹3,078 million in 2023. The company has maintained stable operating profit margins, fluctuating between 7% and 10%, indicating reasonable operational efficiency despite minor variations. Net profit steadily rose to ₹226 million in March 2023, reflecting sustained profitability and effective cost management.
Notably, the dividend payout percentage increased from 13% to 15% over the period, underscoring the company’s commitment to sharing profits with shareholders. Tax efficiency remained consistent, showcasing prudent tax planning, while EPS demonstrated a positive trajectory, climbing from ₹2.25 in March 2019 to ₹32.43 in March 2023. Other income saw significant growth, contributing to additional revenue streams. Reduced interest expenses and a gradual increase in depreciation signify enhanced financial efficiency and prudent asset investment for future growth. Overall, Gravita India Ltd’s financial performance highlights consistent growth, profitability, and strategic financial decisions, positioning it as a stable and potentially rewarding investment choice.
FAQs
What is the current share price of Gravita India Ltd.?
As of the most recent data available, Gravita India Ltd.’ current share price stands at ₹ 1,151, reflecting the valuation of its shares in the current market conditions.
What is the price target for Gravita India Ltd. for 2024?
The estimated price target for Gravita India Ltd. in December 2024 might range between ₹1,186.26 (minimum) and ₹1,440.26 (maximum).
What is the price target for Gravita India Ltd. for 2025?
For December 2025, the projected price target could vary between ₹1,130.05 (minimum) and ₹1,755.88 (maximum).
What is the price target for Gravita India Ltd. for 2030?
Given the data, projecting all the way to 2030 involves more uncertainty. However, based on the increasing trend, the price target in December 2030 might range between ₹1,229.11 (minimum in 2029) and ₹3,195.69 (maximum in 2030).
What has been Gravita India Ltd.’s net profit in the last 5 years?
Gravita India Ltd. has demonstrated a consistent increase in net profit over the last 5 years. Starting at ₹19 million in March 2019, the company’s net profit reached ₹204 million in the trailing twelve months (TTM) ending March 2023. This upward trajectory signifies sustained financial growth and performance.
Should One Invest In Gravita India Ltd.?
Gravita India Ltd. presents a financial profile marked by both strengths and areas of consideration. The company has witnessed consistent sales growth, reaching ₹3,078 crores in the trailing twelve months ending September 2023. However, fluctuations in operating profit margins (OPM) from 3% to 10% raise concerns about sustained profitability. Despite this, Gravita India has shown an impressive compounded sales growth of 24% and a remarkable stock price compound annual growth rate (CAGR) of 226% in the last year.
The return on capital employed (ROCE) is commendable, hovering around 32%, indicating efficient utilization of capital. However, net profit has displayed variations, emphasizing the importance of evaluating the company’s cost management strategies. Investors should carefully scrutinize Gravita India’s financial stability, profitability, and future growth prospects.
The shareholding pattern, with promoters consistently holding a majority stake, suggests confidence in the company. Yet, the involvement of institutional and public investors adds a layer of diversification. Potential investors should conduct a thorough analysis, considering the positive growth trends alongside the challenges reflected in Gravita India’s financial metrics, to make informed investment decisions aligned with their risk tolerance and financial goals.
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