Waste Management stock with a strong expertise in the recycling of used batteries, Lead scrap, Aluminum scrap, and many others in focus following plans of raising funds upto the extent of Rs. 1,000 Crores through QIP.
Price Action
With a market capitalization of Rs. 15,620 Crores, the shares of Gravita India Limited were trading at Rs. 2262 per equity share, up 0.21 percent from its previous day’s close price of Rs. 2,257.85.
What Happened
As per sources, Gravita India Limited is likely to launch a Qualified Institutional Placement (QIP) to raise funds to the extent of upto Rs. 1,000 Crores through the institutional share sale. The QIP is likely to be priced around Rs. 2100 per equity share with a possible 7 percent equity dilution.
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.
Customer Base
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.
Financials & Ratios
Its revenue from operations grew by 14 percent from Rs. 850.31 Crores in Q2FY24 to Rs. 967.75 Crores in Q2FY25, accompanied by profits of Rs. 57.86 Crores to Rs. 72 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 28.96 percent, and a return on capital employed (ROCE) of 23.95 percent. It has reported a debt-to-equity ratio of 0.6.
Written by: Bharath K.S
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