Gravita India Shares Post Strong Q4: SEBI RA Gaurav Narendra Puri Eyes Growth Toward ₹2,600

Gravita India Ltd is poised for growth over the next six months, with SEBI-registered analyst Gaurav Narendra Puri projecting that the stock could rise to ₹2,200, ₹2,400, and potentially ₹2,600, driven by its solid financial performance and strategic initiatives.

The recycling firm's stock was up 6.8% at ₹1,934 at the time of writing on Monday.

The company reported a strong Q4 FY25 performance, with revenue increasing by 20.11% year-on-year to ₹1,037.07 crore, while net profit surged by 37.91% to ₹95.13 crore. 

Gravita also posted an EBITDA of ₹92 crore, reflecting an EBITDA margin of 8.9%. 

The company specializes in recycling lead, plastic, and aluminium through environmentally friendly processes and also offers turnkey solutions.

Puri noted that the company’s ability to sustain growth through strategic moves is a key driver of its bullish outlook.

Gravita’s commitment to diversifying its business portfolio is evident in its non-lead business, which now accounts for over 30% of total revenue. 

The company’s value-added products, contributing 46% to total revenue, align with its Vision 2028 target of 50%. 

Puri said that these efforts contribute to a more balanced and resilient financial performance.

The company’s global expansion strategy has been bolstered by the recent opening of a new recycling facility in Ghana. 

Puri pointed out that this strengthens Gravita’s global footprint, supporting future growth. 

Additionally, Gravita is prioritizing sustainability, with goals to achieve 30% renewable energy usage and a 10% reduction in energy consumption by FY27.

Gravita is also expanding into new recycling verticals, including paper, steel, and lithium-ion batteries, with a planned capital expenditure of ₹600 crore by FY27. 

While short-term resistance levels are seen at ₹2,200 and ₹2,400, Puri believes that the stock has the potential to reach ₹2,600 over the medium term.

Meanwhile, the stock is currently well-positioned for swing trades, with resistance near the ₹2,020 level, according to Orchid Research.

The firm suggests a stop loss near the day's low of ₹1,865 to manage risk effectively.

Shares of Gravitas have fallen 11.2% so far this year.

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