This stock is included in the S&P BSE Smallcap index and has 2.15% of its shares held by Ashish Kacholia. The company’s stock closed at Rs. 928.20, up from Rs. 805.75 at closing on Tuesday. The company released its investor presentation on 26th September 2023 in which it reported growth on various fronts of the business.
The stock closed with a market cap of Rs. 6,408 crore while being 4% away from its 52 week high. The stock closed 17% and 63% above its 20 day and 200 day moving averages respectively.
Gravita India Ltd (“Gravita”) reported growth in various aspects in the aforementioned investor presentation. Performance wise, in FY23, revenue grew 33% YoY from Rs. 1,894 crore to Rs. 2,524 crore. Net profits grew 153% YoY from Rs. 40 Crore to Rs. 101 crore. In Q1 FY24, Revenue Grew 30% YoY from Rs. 503 crore to Rs. 610 crore and Net profits grew 144% YoY from Rs. 16 crore to Rs. 39 crore.
Gravita has reported more than 40 crore reduction in debt and more than 18% volume growth YoY. The company has also increased its share of value added products in its top line. It has increased 800 bps from 41% to 49% in FY23. In FY22, the company’s ROCE increased 900 bps from 18% to 29% which has been sustained at the same level in FY23.
The company has also stated its Vision for 2027 – New recycling verticals including Rubber, Lithium, Steel and Paper, achieving 50%+ value added share and maintaining 25%+ revenue CAGR.
The company estimates aggregate capacity to grow from 233,919 to 324,319 in FY24 and to 395,319 in FY25 to 434,319 MT in FY26. The company has also guided capex for existing and new verticals. New verticals – Rs. 48 crore in FY24, Rs. 100 crore and Rs. 105 crore in FY25 and FY26 respectively.
The existing verticals’ capex is going to reduce – Rs. 159, Rs. 148 and Rs. 110 crore in FY24, FY25 and FY26 respectively.
Coming to footprint, the company now has 31 own yards for scrap versus 29 in FY22. Scrap collection has increased from 180,000 MT in FY22 to 205,000 MT in FY23. The company now has 1,500+ touchpoints up considerably from 1,400 in FY22.
The company reported an increase in domestic customers from around 200 to around 230 now. Overseas customers also grew from close to 75 to about 90 customers as of Q1 FY23.
Gravita India manufactures and recycles aluminium, lead, and lead products in India and internationally. Its key clients include Amara Raja Batteries, Exide Industries, Panasonic, Hitachi, Tata, TVS, Polycab, Asian Paints, Phillips, KEI, KEC and many more.
Written by Sandeep R
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