Shares of Gravita India gained over 4% today after two brokerages Motilal Oswal and Axis Securities assigned bullish stance to the stock. The multibagger stock gained 4.23% to a high of Rs 2600 against the previous close of Rs 2494.40 on BSE. Gravita India stock has gained 681% in two years and risen 224% in a year. The stock has risen 136 per cent in 2024.
Total 0.20 lakh shares of the firm changed hands amounting to a turnover of Rs 5.08 crore. The market cap of the firm rose to Rs 17,770 crore on BSE.
The stock hit a 52-week low of Rs 730.95 on March 13, 2024 and rose to a 52-week high of Rs 2699.85 on September 18, 2024.
Axis Securities has initiated coverage on Gravita assigning a BUY call with a price target of Rs 3,000/share, indicating a potential upside of 20% from the previous close.
"We are confident in Gravita’s potential, attributing our BUY rating to its dominant market position, improving profitability, favourable regulatory landscape, and diversified offerings. The stock currently trades at a reasonable valuation, and we project a target price of Rs 3,000/share based on a 37x FY27E EPS multiple, highlighting the significant upside of 20% from the CMP. In conclusion, Gravita India Ltd. offers a compelling investment opportunity in a rapidly evolving sector. We believe that the company’s strategic initiatives and market positioning will yield substantial returns, and we encourage you to consider adding it to your portfolio," said Axis Securities.
Brokerage Motilal Oswal has assigned a price target of Rs 2,900 to the recycling industry player.
"Going forward, we expect the company’s strong geographical (upcoming facilities in the US and Oman) as well as product portfolio (entering into steel, paper, and lithium ion) expansions will be a key growth lever. We increase our EPS estimates by 5%/7% for FY26/FY27E. We expect a revenue/EBITDA/PAT CAGR of 30%/32%/34% over FY24-27. We value the stock at 40x Sep’26E EPS to arrive at our target price of Rs 2,900. We reiterate our BUY rating on the stock," said the brokerage.
In terms of technicals, the relative strength index (RSI) of Gravita India stands at 60.6, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 1, indicating average volatility in a year. Shares of Gravita India are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Gravita India is one of the largest lead recyclers in India with a market share of 18-19 per cent in the organised lead recycling market.