Listed Below is one of the leading recycling companies in India, which currently holds a significant position in the non-ferrous metals industry and has delivered a multibagger return of 6568 percent in just 4 years.
The Domestic benchmark equity indices, the Sensex, and the Nifty 50 ended Friday’s session in Green strengthened by Buying in IT, Realty, and Auto. The Sensex ended at 80,436.84 up by 1,330.96 points or 1.68 percent, while the Nifty 50 closed at 24,541.15 up by 397.40 points or 1.65 percent.
On May 22, 2020, the shares of Gravita Limited closed at Rs. 33.20 exhibiting a gain of around 6,568 percent compared to the current price of Rs 2,213.70. For example, if someone had invested Rs. 1 lakh into the company’s stock 4 years ago, it would have turned to ~Rs. 67 Lakhs.
About the Company
Gravita India Limited is engaged in operations of specialized verticals like Lead Recycling(flagship), Aluminum recycling, Plastic recycling, and Turnkey projects with a healthy order book of 60000 MT+
It has strong expertise in the recycling of used batteries, cable scrap, Plastic scrap, Lead scrap, Aluminum scrap, and others. It has also begun New recycling Verticals i.e., Lithium, Steel, Rubber & Paper.
With a market capitalization of Rs. 15,283 Crores, the shares of Gravita India Limited closed at Rs. 2,213.70 per equity share, up 14 percent from its previous day’s close price of Rs. 1,950.20.
Presence and Customer Base
Gravita India Limited has a presence across the Globe with a deep procurement network consisting of 31 own yards, 1700+ touch points, 2.91 Lakh+ MT Production Capacity with a 66 percent utilization, and 2.5 Lakh+ scrap collection with operations in Europe, America, Africa, Asia, Australia, the Middle East, and others.
Coming to the global customer network it has a diversified base with 32+ countries, 350+ customers globally, 125+ customers domestically, and 1.69 Lakh recycled products delivered. It has Executed more than 70+ turnkey projects globally including Qatar, UAE, Saudi Arabia, Poland, and Chile.
It has a strong clientele base with well-known players like Amara Raja, Tata Batteries, Luminous, TVS, Hitachi, Polycab, Panasonic, Samvardhana Motherson, Philips, Ducab, Sterlite Power, Glencore and many more
Product Portfolio and Business Model
Its Customized and Value-added product portfolio consists of Customized Lead Alloys, Lead Sheets, Lead Bricks, Red Lead, Lead Oxide, Customized Aluminium Alloys, Plastic Granules, Pet Flakes, and many more.
Its Business Model consists of Last Mile Procurement, Segregation /Sorting / Quality Inspection, Eco-friendly Processing followed by Value Added Products, Quality Check & Delivery and Customer Satisfaction / R&D
Future Guidance
Gravita India Limited has a strategic focus on expanding into new recycling verticals such as lithium-ion, steel, and paper recycling. It is firmly advancing towards its objective of boosting capacity to over 5 Lacs+ MTPA with a capex of Rs. 600 Crore+ by FY27
Gravita India Limited aims for a volume and profitability growth of over 25 percent and 35 percent, respectively on a CAGR basis, ROCE of over 25 percent, and an increase in value-added products and non-lead business to over 50 percent and 30 percent, respectively
Q1FY25 Results and Ratios
Its Revenue from operations grew by 29 percent YoY from Rs. 703.39 Crores in Q1FY24 to Rs. 907.86 Crores in Q1FY25 and it grew by 4 percent QoQ from Rs. 863.41 Crores in Q4FY24 to Rs. 907.86 Crores in Q1FY25.
Its Net Profit grew by 29 percent YoY from Rs. 52.55 Crores in Q1FY24 to Rs. 68 Crores in Q1FY25 and it declined by 2 percent QoQ from Rs. 69.42 Crores in Q4FY24 to Rs. 68 Crores in Q1FY25. Its Net Profit Margin increased from 7.23 percent in Q1FY24 to 7.43 percent in Q1FY25.
In terms of Return ratios, it has reported a return on equity (ROE) of 33.5 percent, and a return on capital employed (ROCE) of 27.6 percent. It has reported a debt-to-equity ratio of 0.65.
Written by: Bharath K.S
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