Minerals & Mining
Gravita India Limited manufactures and recycles aluminum, plastic, lead, and lead products 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 manufactures lead metal products, including pure lead/refined lead ingots, red lead, litharge, lead sub oxide, and lead coolant in nuclear power, as well as lead alloys, sheets, plates, balls, bricks, wool, sheath, weights, powder, wire, and metal; plastic products, such as recycled polypropylene granules, polycarbonate, HDPE, ABS granules, chips, and compounds; and aluminium solutions, including various metals and foundry alloys. It also offers consultancy services for recycling operations; turnkey solutions for recycling processes and solutions; and lead chemicals, such as soda ash, mill scale, iron and cast iron chips, tin, arsenic, calcium aluminium alloy, lead and aluminium chloride, sulphur, caustic soda, antimony ingots, and iron pyrite. In addition, the company trades in aluminium scraps, such as taint tabor and tense aluminium; and procures battery, plastic, and rubber scrap materials. The company also exports its products. Gravita India Limited was incorporated in 1992 and is based in Jaipur, India.
Momentum: Stock price has a strong positive momentum. Stock is up 5.7% in last 30 days.
Size: Market Cap wise it is among the top 20% companies of india.
Growth: Awesome revenue growth! Revenue grew 21.6% over last year and 90.6% in last three years on TTM basis.
Profitability: Recent profitability of 8% is a good sign.
Balance Sheet: Strong Balance Sheet.
Technicals: Bullish SharesGuru indicator.
Smart Money: Smart money looks to be reducing their stake in the stock.
Comprehensive comparison against sector averages
GRAVITA metrics compared to Minerals
Category | GRAVITA | Minerals |
---|---|---|
PE | 48.15 | 11.69 |
PS | 3.65 | 2.47 |
Growth | 21.6 % | 8.1 % |
GRAVITA vs Minerals (2021 - 2025)
Understand GRAVITA INDIA ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
RAJAT AGRAWAL | 35.77% |
Rajat Agrawal Trustee of Agrawal Family Private Trust | 23.5% |
OXBOW MASTER FUND LIMITED | 2.44% |
GOLDMAN SACHS FUNDS - GOLDMAN SACHS INDIA EQUITY P | 2.24% |
YAGYADATT SHARMA TRUSTEE ON BEHALF OF GRAVITA EMPLOYEE WELFARE TRUST | 1.35% |
JUPITER INDIA FUND | 1.12% |
MAHAVIR PRASAD AGARWAL | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Summary of GRAVITA INDIA's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 25
Management Outlook and Major Points:
1. Strategic Growth Initiatives:
2. Financial Performance & Targets:
3. Regulatory & Market Drivers:
4. Sustainability & Diversification:
5. Debt & Capital:
Key Risks Mitigation: Geopolitical/currency risks managed via global diversification and hedging. Focus on domestic scrap reduces import dependency.
Last updated: Jan 25
Major Questions and Answers:
1. Question: "Is it fair to assume FY26 EBITDA per kg guidance will remain in the INR 19-20 range despite domestic scrap growth?"
Answer: EBITDA per ton for lead is expected to stabilize at INR 18"“19, balancing lower domestic scrap margins with higher-margin overseas operations and value-added products.
2. Question: "What is the commissioning timeline for Mundra projects (lead, aluminum, plastic, rubber, lithium-ion)?"
Answer: All Mundra projects (including new lithium-ion and rubber recycling) are expected to commission in H1 FY26, contributing ~72,000 tons annually initially.
3. Question: "What are the overseas expansion plans (Oman, Dominican Republic, Romania)?"
Answer: Oman expansion is progressing, with potential M&A in the Gulf. Dominican Republic (license by H1 FY26) and Romania (rubber recycling, FDA-approved) are key strategic projects.
4. Question: "What is the update on RCM for battery scrap?"
Answer: RCM for battery scrap (Chapter 85) missed earlier inclusion but is under review; likely post-GST Council approval.
5. Question: "How will QIP proceeds be utilized?"
Answer: INR 245 crore used for debt repayment and working capital. Remaining funds will support growth initiatives (capacity expansion, M&A) and new verticals like lithium-ion recycling.
6. Question: "Why did aluminum volumes surge in Q3?"
Answer: Higher sales due to inventory clearance amid price fluctuations. Volumes will stabilize at ~4,000 tons/quarter until MCX alloy hedging begins in Q1 FY26.
7. Question: "Break down scrap procurement (domestic vs. imported vs. overseas)?"
Answer: In Q3: 44% domestic scrap (50% YoY growth), 56% imported, and 35"“36% sourced overseas for overseas operations.
8. Question: "How will domestic scrap competition from battery manufacturers impact growth?"
Answer: Shift from unorganized to organized sectors and EPR regulations will drive 3x scrap availability by FY27, ensuring 25% volume CAGR despite competition.
9. Question: "Why did standalone EBITDA margins drop to 5.6% in Q3?"
Answer: Domestic operations inherently have lower margins (~INR 11"“12/kg). Consolidated margins (INR 18"“19/kg) reflect global arbitrage opportunities and value-added focus.
10. Question: "What are the FY26 debt and cash projections?"
Answer: Gross debt (~INR 340 crore) to near zero by FY25-end post QIP repayment. Liquidity of INR 300"“400 crore retained for expansion.
11. Question: "What drives confidence in 35% profitability CAGR?"
Answer: Lead (18"“20% volume growth), aluminum (40%), plastics (70%), and new verticals (lithium/rubber) combined with domestic scrap growth and value-added focus.
12. Question: "What are key risks to growth?"
Answer: Geopolitical disruptions (shipping, production), currency risks (managed via USD transactions), and technology shifts (addressed via lithium-ion diversification).
13. Question: "Explain lithium-ion recycling margins and scalability."
Answer: Pilot project (H1 FY26) focuses on R&D and partnerships. Margins likely higher than lead long-term, but revenue contribution expected post-FY28 due to scrap availability delays.
14. Question: "Update on RCM for plastic/other scraps?"
Answer: RCM for plastic (Chapter 39), tire (40), and paper (47) under consideration post-metal scrap inclusion. Current EPR drives plastic growth (70% CAGR).
15. Question: "Why lower aluminum margin guidance (INR 14/kg) vs. recent quarters?"
Answer: Quarterly volatility due to LME fluctuations. Sustainable INR 14"“15/kg achievable post-MCX hedging, aligning with long-term targets.
Analysis of GRAVITA INDIA's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Lead | 84.9% | 838.5 Cr |
Aluminium | 12.5% | 123.8 Cr |
Plastics | 2.6% | 25.5 Cr |
Total | 987.9 Cr |
Detailed comparison of GRAVITA INDIA against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
VEDL | VedantaDiversified Metals | 1.62 LCr | 1.52 LCr | -10.96% | +8.46% | 9.05 | 1.07 | +1.81% | +112.67% |
HINDALCO | Hindalco IndustriesAluminium | 1.4 LCr | 2.32 LCr | -10.01% | -3.82% | 10.06 | 0.6 | +6.75% | +47.91% |
ECORECO | Eco RecyclingWaste Management | 1.6 kCr | 40.16 Cr | -13.72% | +12.48% | 74.02 | 39.29 | +24.03% | +59.18% |
NRL | Nupur RecyclersOther | 633.33 Cr | - | +0.50% | -24.36% | 59.48 | 2.68 | - | - |
Valuation | |
---|---|
Market Cap | 13.84 kCr |
Price/Earnings (Trailing) | 48.15 |
Price/Sales (Trailing) | 3.65 |
EV/EBITDA | 34.17 |
Price/Free Cashflow | -267.1 |
MarketCap/EBT | 43.1 |
Fundamentals | |
---|---|
Revenue (TTM) | 3.8 kCr |
Rev. Growth (Yr) | 32.6% |
Rev. Growth (Qtr) | 5.94% |
Earnings (TTM) | 287.4 Cr |
Earnings Growth (Yr) | 26.99% |
Earnings Growth (Qtr) | 8.54% |
Profitability | |
---|---|
Operating Margin | 8.46% |
EBT Margin | 8.46% |
Return on Equity | 30.54% |
Return on Assets | 15.97% |
Free Cashflow Yield | -0.37% |
Investor Care | |
---|---|
Dividend Yield | 0.44% |
Dividend/Share (TTM) | 9.55 |
Shares Dilution (1Y) | 6.91% |
Diluted EPS (TTM) | 41.75 |
Financial Health | |
---|---|
Current Ratio | 2.26 |
Debt/Equity | 0.59 |
Debt/Cashflow | 0.08 |