Fundamental Analysis of Gravita India: “What is good for the environment can also be good for the economy.” With this belief and with the vision to be the most valuable company in the recycling space globally by 2026, Gravita India has been recycling and creating value for its stakeholders for more than 3 decades. In this article, we will perform a Fundamental Analysis of Gravita India and take a look at thier business, financials, future plans and more.

Gravita India Logo

Fundamental Analysis of Gravita India

About The Company

Established in 1992 with a lead recycling plant in Jaipur by Mr. Rajat Agrwal, today has diversified into manufacturing, international trades, turn-key solutions, plastic and aluminum industry.  Gravita India has offices and plants in  India, USA, Singapore, Netherlands, Sri Lanka, Ghana, Mozambique, Senegal,  Tanzania, Jamaica, Mali, Mauritania, and Nicaragua.

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Gravita India has one of the largest networks of waste collection with over 1500+ scrap collection touch points and over 2,05,000+ MT of Scrap collected in FY 22-23. Their major supply chain partners are Reliance Industries Limited, Asian Paints, TATA, Amara Raja, and many others. Their waste collection network across continents is shown in the image below.

Fundamental Analysis of Gravita India - Company Details
Source: Annual Report FY 2022-23

It also has a strong customer base across the globe. They have served more than 375 customers spread across 38 countries across the globe and recycled more than 1,55,000 MT of products in FY 22-23. Their customer base includes major corporates like Panasonic, Tata Batteries, TVS, Luminous, and many others.  The table below shows their presence across continents.

Company Report overseas details
Source: Annual Report FY 2022-23

Business Segments

Gravita India has broadly four segments:

Lead Processing (Revenue contribution: 87.42%): It involves the conversion of lead battery scrap or lead concentrate into secondary lead metal. This secondary lead metal can be further refined and utilized to create various lead-based products.

Aluminium Processing (Revenue contribution: 6.89%): Aluminium processing encompasses activities such as the trade of Taint Tabor and Tense aluminum scraps and the manufacturing of alloys through the melting of aluminum scrap materials.

Turn-key solutions (Revenue contribution: 2.72%): A turnkey solution involves providing a complete supply of plant and machinery required for a lead manufacturing facility. 

Plastic manufacturing (Revenue contribution: 2.70%): Recycled plastics are produced using post-consumer or post-industrial plastic materials, rather than virgin resin. Recycling these plastics from previously used consumer products is an effective method for transforming the material into valuable and practical products.

Based on geographic location almost equal amount of net profit was contributed from domestic and overseas business in FY 22-23. 

Industry Overview

Waste has evolved over time, and it is now regarded as a valuable resource capable of generating large cash. Waste management is critical for both economic and environmental benefits, including energy generation. The global market for garbage recycling services is expanding, with a projected value of approximately 90 billion US dollars by 2028. Waste management is a potential $15 billion sector in India, owing to rising industrialization and population expansion.

According to Precedence Research and GM Insights, the global recycled lead market is estimated to reach roughly USD 20.4 billion by 2030, with a 3.5% growth rate between 2020 and 2026. This suggests a good trend in the worldwide lead recycling sector, particularly in lead acid battery recycling. Furthermore, the increased importance of environmental protection standards and laws may be ascribed to the industry’s expansion.

Secondary aluminum consumption in India has increased at a CAGR of 9-11%, driven mostly by the automotive sector, but also by packaging, consumer durables, and the construction sector. Because of cost dynamics, the share of secondary aluminum in India’s aluminum industry has increased from 29-30% in fiscal year 2015 to 42-43% in fiscal year 2022.

The global plastic recycling market was valued at $44,290 million in 2022 and is expected to expand to $65,050 million by 2029.

Gravita India – Financials

Revenue & Net Profit

Gravita reported a  revenue growth of 21%, from Rs.2216 Cr in FY22 to Rs.2801 Cr in FY23. The Company grew by 22.42% on a 4-year CAGR basis.

The net profit has shown an upward trend, reporting 38% growth from Rs.148 Cr in FY22 to Rs.205 Cr in FY23. From a long-term perspective, the company grew by 81.02% on a 4-year CAGR basis.

Fiscal YearNet sales (In Crores)Net Profit (In Crores)
4 year CAGR22.42%81.02%

Profit Margins

The operating profit margins have decreased by 2.5%, from 9.72% in FY22  to 7.21% in FY23.

Gravita reported a 59 Basis point increase in its net profit margins, from 6.7% in FY22 to 7.29% in FY23, which is well above its 5-year average of 4.46% This increase can be attributed to an increase in profitability and it also hedges its commodity price exposure and foreign currency exposure to ensure stable margins.

Fiscal YearOperating Profit MarginNet Profit Margin
5 year average7.51%4.46%

Return Ratios

Return on Capital Employed remained stable in FY23. Improving industry dynamics, reduction in working capital, and improving demand supplies are the main drivers of ROCE.

Return on Equity showed a 344 Basis points decrease from 45.27% in FY22 to 41.83% in FY23. The current ROE is well above its 5-year average. The ROE has fallen but PAT has increased mainly due to repayment of liabilities and increase in capex.

Fiscal YearROCEROE
5 year average20.80%27.48%

Debt Analysis

Debt/Equity has decreased from 1 in FY22 to .58 in FY23. The average D2E is also below 2. Repayment of current and noncurrent borrowings resulted in a decrease in the ratio.

The interest coverage ratio has been continuously increasing due to the repayment of borrowings leading to a decrease in principal repayments in subsequent years. ICR has increased from 5.33 in FY22 to 6.23 in FY23.

Fiscal YearDebt / EquityInterest Coverage Ratio
5 year average13.894

Key Highlights

  • Procuring raw materials is a great challenge in this industry. The company has consciously established itself in regions where there is ready access to raw materials thus reducing the net working capital cycle.  
  • Back-to-back hedging of commodity prices ensures stable margins and stays unaffected by price fluctuations.
  • The worldwide metal recycling sector is experiencing remarkable expansion, but this rapid growth presents its own set of difficulties, including heightened competition and the imperative to embrace digitalization for enhanced operational efficiency.
  • The market faces competition from alternative technologies, particularly lithium-ion batteries, which are anticipated to disrupt its growth due to their declining costs and technical superiority.
  • The Indian battery market is characterized by significant fragmentation, as it hosts a multitude of unorganized entities, posing challenges for organized players in terms of competition.
  • The majority of revenue of Gravita comes from lead processing.

Future Plans Of Gravita India

  • Gravita aims to establish new recycling verticals of rubber, lithium, steel & paper by 2027.
  • Gravita has a target to achieve 25%+  of total revenue from non-lead business and for this, they have a planned capex of Rs.600+ crores.
  • The company has a target to increase its manufacturing capacity to 4,25,000 MTPA by FY 2026.
  • It targets to achieve 35%+ profitability growth and 25% Revenue CAGR till 2027.

Gravita India – Key Metrics

CMP1,063.8Market Cap(Cr)7,250.02
EPS21.82Stock P/E51.5
Promoter Holdings66.48%FII Holdings9.99%
Debt to Equity0.58P/B21.52
Operating Profit Margin7.21%Net Profit Margin7.29%


As we conclude our article on Fundamental Analysis of Gravita India, Gravita India is committed to a mission of preserving the Earth’s natural resources in order to mitigate the consequences of climate change and promote a sustainable future for all. It is primarily a lead recycling company, with the majority of its revenue coming from this industry, but it also plans to increase revenue from other industries. They are also exploring chances to expand into new recycling verticals like lithium, steel, and paper.

The future prospects appear quite optimistic, as the recycling industry is projected to grow at a fast pace. The trends in profitability and turnovers are expected to continue because of the network of suppliers and customers they have created. 

What is your view on Gravita India? Do let us know in the comment section.

Written By Ashish Agarwal

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