According to reports from The Hindu BusinessLine, brokerage firm has issued a Buy recommendation for Gravita India with a target price of ₹1,900 per share. The current market price stands at ₹1,727.30, indicating an upside potential of approximately ₹172.70 from current levels. As one of India's largest lead producers, Gravita India is positioned as a strong growth prospect in the metals recycling sector.
As reported by The Hindu BusinessLine, Gravita India has strengthened its long-term growth strategy through the acquisition of a 99.44 per cent stake in Rashtriya Metal Industries. This strategic move marks the company's entry into the copper and copper alloys value chain, broadening its product portfolio and providing access to specialised end-markets including electrical equipment, power infrastructure and defence applications. The transaction represents a significant diversification beyond the company's core lead recycling business.
According to the report, Gravita India plans to establish a backward-integrated copper recycling facility at Mandvi, Gujarat. This facility is expected to improve profitability and support the management's targeted return on capital employed (ROCE) of over 20 per cent for the copper business segment. The backward integration strategy positions the company to capture higher margins in the copper recycling value chain.
As reported by The Hindu BusinessLine, the management has increased its cumulative FY29 capex guidance to ₹1,700 crore from ₹1,200 crore earlier. Nearly ₹700 crore is earmarked for the copper segment, reflecting the company's commitment to expanding its copper operations and supporting its diversification strategy. This substantial increase in capital expenditure demonstrates the company's strategic focus on scaling its copper recycling capabilities.
According to the brokerage analysis reported by The Hindu BusinessLine, Gravita India is expected to sustain a healthy volume growth trajectory with the management targeting a 20-25 per cent CAGR over the next three years. The management has reiterated its medium-term objective of achieving approximately 25 per cent CAGR in volumes and 35 per cent CAGR in earnings. Any potential diversification into adjacent areas such as paper or steel recycling will remain contingent upon favourable demand dynamics and attractive return expectations. The company's strong fundamentals and strategic diversification into copper recycling support the positive growth outlook.
