Gravita Ltd’s fundamental analysis highlights essential financial metrics, including a total market capitalization of ₹16,671 crore, a debt-to-equity ratio of 0.60, and a return on equity (ROE) of 33.7%. These numbers offer valuable insight into the company’s financial stability and overall market valuation.
Table of Contents
Overview of the Battery Recycling Sector
The battery recycling sector plays a critical role in sustainable waste management and resource recovery. With increasing global adoption of electric vehicles (EVs) and renewable energy storage, the demand for recycling lithium-ion and lead-acid batteries has surged, mitigating environmental concerns.
Technological advancements, regulatory frameworks, and growing environmental awareness drive this sector’s growth. Companies focus on extracting valuable materials like lithium, cobalt, and nickel, reducing dependency on mining. As industries prioritize sustainability, battery recycling emerges as a vital contributor to the circular economy.
Financial Analysis of Gravita Ltd
| FY 24 | FY 23 | FY 22 | FY 21 | |
| Sales | 3,161 | 2,801 | 2,216 | 1,410 |
| Expenses | 2,877 | 2,603 | 2,005 | 1,298 |
| Operating Profit | 283.55 | 197.61 | 210.91 | 111.92 |
| OPM % | 8.76 | 6.83 | 9.48 | 7.9 |
| Other Income | 77.81 | 93.08 | 7.84 | 7.17 |
| EBITDA | 361.36 | 290.69 | 218.75 | 119.09 |
| Interest | 49.22 | 39.14 | 33.55 | 27.87 |
| Depreciation | 37.99 | 23.96 | 20.56 | 20.3 |
| Profit Before Tax | 274.15 | 227.59 | 164.64 | 70.92 |
| Tax % | 11.63 | 10.33 | 9.83 | 19.85 |
| Net Profit | 242.28 | 204.09 | 148.45 | 56.83 |
| EPS | 34.65 | 29.13 | 20.19 | 7.6 |
| Dividend Payout % | 15.01 | 14.93 | 14.86 | 14.47 |
* Consolidated Figures in Rs. Crores
Gravita India Limited Company Metrics
Gravita Ltd’s financial performance in FY24 demonstrated growth, with sales reaching ₹3,161 crore, up from ₹2,801 crore in FY23 and ₹2,216 crore in FY22. Operating profit improved to ₹283.55 crore in FY24, reflecting positive operational dynamics and strong market demand.
Sales Growth: Sales rose by 12.87% to ₹3,161 crore in FY24 from ₹2,801 crore in FY23. FY23 sales increased by 26.36% from ₹2,216 crore in FY22, reflecting consistent expansion and a growing customer base in the recycling industry.
Expense Trends: Expenses increased to ₹2,877 crore in FY24, reflecting a 10.54% rise from ₹2,603 crore in FY23. FY23 expenses rose by 29.85% from ₹2,005 crore in FY22, driven by higher raw material costs and operational scale-up.
Operating Profit & Margins: Operating profit grew to ₹283.55 crore in FY24, up by 43.47% from ₹197.61 crore in FY23. OPM improved to 8.76% in FY24 from 6.83% in FY23 and 9.48% in FY22, reflecting better cost management.
Profitability Indicators: Net profit increased to ₹242.28 crore in FY24, up by 18.72% from ₹204.09 crore in FY23. FY22 net profit was ₹148.45 crore. EPS improved to ₹34.65 in FY24 from ₹29.13 in FY23, showcasing strong profitability growth.
Taxation & Dividend: The tax rate remained stable at 11.63% in FY24, compared to 10.33% in FY23. Dividend payout slightly increased to 15.01% in FY24, maintaining a consistent distribution policy and signaling stable cash flow management.
Key Financial Metrics: EBITDA rose to ₹361.36 crore in FY24, up by 24.3% from ₹290.69 crore in FY23. Interest expenses increased to ₹49.22 crore in FY24, while depreciation rose to ₹37.99 crore, reflecting higher capital investments and asset growth.
Gravita Stock Performance
Gravita Ltd’s stock performance has been impressive: a 1-year return of 106%, a 3-year return of 97.9%, and a 5-year return of 116%, highlighting its consistent growth and strong appeal among long-term investors.
| Duration | Return |
| 1 year | 106 % |
| 3 years | 97.9 % |
| 5 years | 116 % |
Gravita Shareholding Pattern
Shareholding Pattern of Gravita Ltd reveals evolving investor interest: Promoters’ stake decreased from 73% in March 2022 to 63.37% in September 2024, while FIIs rose from 1.21% to 14.01%. Shareholders surged from 43,751 to 97,869, reflecting growing market participation.
| Metrics | Mar 2022 | Mar 2023 | Mar 2024 | Sep 2024 |
| Promoters | 73.00% | 73.00% | 66.48% | 63.37% |
| FIIs | 1.21% | 3.08% | 11.08% | 14.01% |
| DIIs | 0.15% | 0.25% | 0.43% | 3.21% |
| Public | 23.64% | 21.66% | 20.56% | 17.95% |
| Others | 2.00% | 2.00% | 1.45% | 1.45% |
| No. of Shareholders | 43,751 | 53,190 | 75,335 | 97,869 |
Gravita Partnerships and Acquisitions
Gravita India is expanding its recycling operations in Europe with a significant acquisition in Romania. Through an SPV, Gravita Netherlands BV will hold 80% equity in a tire recycling plant, involving a ₹40 crore investment, enhancing recycling capabilities in the region.
The company is leveraging strategic partnerships and new opportunities to strengthen its European presence. These initiatives aim to increase visibility, attract a broader client base, and establish Gravita as a competitive leader in the European recycling market.
With recycling facilities in Senegal, Togo, Ghana, and Tanzania, Gravita India maintains a strong global footprint. Its expertise in manufacturing lead, lead alloys, and consultancy services aligns with its mission of sustainable and strategic growth.
Gravita India Peer comparison
Gravita India, with a market cap of ₹16,671.11 crore, shows strong performance in the peer comparison. It has a 1-year return of 106.06%, a P/E ratio of 62.09, and an ROE of 33.68%, making it competitive against larger players like Hindustan Zinc.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | ROCE % | 6mth return % | 1Yr return % | Div Yld % |
| Hindustan Zinc | 454.7 | 192125.25 | 21.84 | 55.19 | 46.25 | -30.31 | 42.96 | 6.38 |
| Hindustan Copper | 256.5 | 24804.17 | 61.64 | 13.53 | 17.99 | -19.23 | -6.27 | 0.36 |
| Gravita India | 2258.7 | 16671.11 | 62.09 | 33.68 | 27.86 | 56.97 | 106.06 | 0.23 |
| Shivalik Bimetal | 577.9 | 3328.95 | 41.4 | 27.66 | 32.84 | -4.64 | 4.97 | 0.29 |
| Prec. Wires (I) | 170.28 | 3042.19 | 37.34 | 15.21 | 25.35 | 4.74 | 41.37 | 0.62 |
| Ram Ratna Wires | 576.7 | 2537.48 | 42.48 | 13.58 | 17.37 | 45.93 | 94.73 | 0.43 |
| Pondy Oxides | 894.8 | 2513.07 | 44.29 | 12.89 | 16.1 | 87.83 | 256 | 0.28 |
Future of Gravita
Gravita India is poised for growth in the coming years, driven by its strategic acquisitions and expansions in the European market. With a focus on enhancing its recycling capabilities, particularly in tire and rubber recycling, it is strengthening its global position.
The company’s growth is further supported by its innovative solutions in the lead recycling industry, diversifying its product portfolio to cater to various sectors. Leveraging advanced technology, Gravita is committed to boosting its manufacturing capacity and efficiency across its global facilities.
Gravita India’s future also looks promising due to its sustainability initiatives, which align with global environmental goals. As demand for eco-friendly recycling solutions rises, the company’s expanding footprint and commitment to green technologies will enhance its market presence.
How to Invest In Gravita Share?
To invest in Gravita shares, begin by opening a Demat and trading account with a trusted stockbroker such as Alice Blue. This account allows you to securely buy and hold shares electronically.
- Research the Stock: Analyze Gravita’s financials, market trends, and growth prospects to understand its potential risks and rewards before investing.
- Choose a Reliable Stockbroker: Select a trusted broker like Alice Blue for its user-friendly platform and competitive fees, then register to access the stock market.
- Fund Your Trading Account: Deposit funds into your trading account, ensuring enough balance to cover share purchases and additional fees.
- Place a Buy Order: Search for Gravita on your broker’s platform and place a buy order with a specified quantity and price (market or limit order).
- Monitor Your Investment: Track your investment’s performance regularly and stay updated on news or developments that could impact your decision to hold or sell.
- Brokerage Tariffs: Please note that Alice Blue’s updated brokerage tariff is now Rs. 20 per order, which will apply to all trades.
Gravita – FAQs
Gravita India Limited has a market capitalization of ₹16,671 crore, reflecting its significant presence in the waste management and recycling sector. With a stock P/E ratio of 62.1, it is valued as a major player in the industry.
Gravita is a prominent player in the waste management industry, specializing in lead and battery recycling. While it has a strong presence, it faces competition from other companies in the sector. It continues to expand its footprint in both domestic and international markets.
Gravita India has announced key acquisitions, including a waste tire recycling plant in Romania through its subsidiary Gravita Netherlands BV, with an investment of ₹40 crore. Additionally, the company is acquiring a rubber recycling plant in Europe and already operates facilities in Africa.
Gravita India Limited specializes in lead and plastic recycling, along with providing end-to-end solutions in waste management. The company processes waste lead acid batteries, e-waste, and other industrial waste, converting them into valuable raw materials for various industries.
Gravita India Limited is a publicly traded company with a diversified ownership structure. The majority of its shares are held by the promoters, followed by institutional investors and the public. The company was founded by Mr. Sanjeev Jain.
The main shareholders of Gravita India Limited include the promoters, who hold around 63.37% of the shares as of September 2024. Institutional investors, such as FIIs and DIIs, hold significant minority stakes, with FIIs owning 14.01% of the shares.
Gravita India operates in the waste management and recycling industry, specializing in lead recycling and waste-to-resource solutions. It is a part of the broader environmental sustainability sector, focusing on circular economy practices for various industries.
Gravita India has experienced strong growth in its order book, driven by expanding recycling capabilities and international ventures. The order book growth reflects increased demand for lead and battery recycling services, ensuring steady revenue generation for the year.
To invest in Gravita shares, open a Demat and trading account with a reliable broker like Alice Blue. Fund your account, research the stock, and place a buy order through the broker’s platform. Regularly monitor your investment to track performance and make informed decisions based on market trends.
Gravita’s stock, with a P/E ratio of 62.1, suggests it may be slightly overvalued compared to the industry average. However, the company’s growth potential in global recycling markets could justify the premium, making it an attractive investment for long-term growth.
Gravita’s future looks promising, with plans to expand its recycling operations globally and enhance its technological capabilities. The company is well-positioned to capitalize on growing environmental sustainability trends and increasing demand for efficient waste management solutions.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
