Gravita India shares: Ashish Kacholia stock climbs 8% on strong Q2 results

Shares of Gravita India Ltd, a Ashish Kacholia portfolio stock, climbed over 8 per cent in Wednesday's trading session after the global recycler of non-ferrous secondary metals reported a 30 per cent-plus rise in net profit at Rs 57.86 crore for the September quarter compared with Rs 44.57 crore in the same quarter last year. Revenue for the quarter stood at Rs 836 crore compared with Rs 683 crore in the corresponding quarter last year. Ebitda grew 23 per cent

The stock climbed 8.33 per cent to hit a high of Rs 1,079.80 on BSE. Ashish Kacholia held 14,84,399 shares or 2.15 per cent stake in the company as on September 30. The stake was valued at Rs 158 crore as of Wednesday’s trading price.

Whole Time Director & CEO Yogesh Malhotra said its strategic position as one of the few recyclers in the formal sector is supported by strong sectoral tailwinds like stricter government norms of BWMR & EPR.

"Our Pan India and global presence, integrated supply chain, operational excellence and strong risk management framework makes us a preferred partner of choice for OEMs across India and gives us confidence to meet our Vision 2027 of diversifying into new business verticals and achieve Revenue CAGR 25%+, Profitability growth 35%+ and ROCE 25%+," Malhotra said.

He said volumes, revenue, Ebitda and profit for the quarter rose 14 per cent, 22 per cent, 23 per cent and 30 per cent, respectively. Earlier this month, Antique Stock Broking initiated coverage on this stock with a target of Rs 1,250.

"Gravita India has planned an Rs 650 crore capex over FY23–26 to increase its capacity from 234 kmtpa to 553 kmtpa by FY26. With a hedging mechanism in place, we believe Gravita can deliver

10 per cent (INR 14-15/ kg) sustainable margin going forward driven by increasing contribution of overseas lead business, aluminum, plastic, and new verticals like steel and paper," it said.

Also read: Adani Total Gas stock drops post Q2 results; YES Securities shares its view

Also read: Rattanindia Enterprises shares jump 11% today on securing drone certification. Details here