Gravita India's recent surge in stock price to a new high of Rs 1,967.20 was driven by Motilal Oswal Financial Services' initiation of coverage with a 'Buy' rating and a target price of Rs 2,350 per share. The industrial minerals company has witnessed a remarkable increase in its stock price, having surged by 117% in the past three months and a striking 3,727% in the last four years.
The key focus of Gravita India lies in the recycling industry in India, particularly in lead, aluminum, and plastics recycling. The company not only offers recycling services but also provides turnkey solutions to assist customers in setting up their recycling plants. In the June 2024 quarter, Gravita showcased significant growth in volumes, revenues, EBITDA, and profit after tax, with plans for ambitious expansion into lithium-ion, steel, and paper recycling under their 'Vision 2028' growth plan.
Gravita's core business of lead recycling is expected to sustain strong revenue growth momentum, propelled by regulatory changes and sector formalization, as highlighted by MOFSL. Additionally, the company is well-positioned to capitalize on the increasing demand for batteries from electric vehicles and energy storage systems, with a focus on value-added products and non-lead business segments to drive growth according to their long-term vision. With competitive advantages such as strategically located manufacturing units and a diverse global customer base, Gravita's prospects in the recycling industry are promising, leading to the 'Buy' rating and target price set by Motilal Oswal Financial Services.