Gravita India Ltd.
Metals · NSE
52-week range
₹1,267 – ₹2,170
From 52w high
-18.8%
RSI (14)
67.1
vs SMA 50 / 200
↑ 50 · ↑ 200
Gravita India is a metals-recycling company trading at 1763, up 6.06% over 3 months but down 5.45% over 12 months. At a trailing PE of 33.88 and a debt-to-equity of 19.62 (rising trend), the company pairs 14.6% five-year earnings CAGR with structurally high leverage and limited free cash flow generation — only 2 of tracked years showed positive FCF. The stock sits above both its 50-DMA (1538.56) and 200-DMA (1665.40), with immediate resistance at 1763.8.
- ✓5-year earnings CAGR of 14.6% demonstrates sustained bottom-line growth even as revenue CAGR remained modest at 2.1%, implying meaningful margin improvement over the period.
- ✓Consolidated net sales for the March 2026 quarter grew 13.08% year-on-year to 1172.76 crore, the most recent datapoint showing continued top-line momentum.
- ✓The stock trades above both the 50-DMA (1538.56) and 200-DMA (1665.40), with a consistency score of 73 in the fundamentals persistence model reflecting above-average historical reliability.
- ✓A planned 160 crore copper recycling plant in Gujarat signals capacity expansion into an adjacent recycling vertical, diversifying the current revenue base.
- ✗Debt-to-equity of 19.62 on a rising trajectory is materially elevated; in a capital-intensive recycling operation, expanding leverage amplifies exposure to input cost cycles and interest rate movements.
- ✗Free cash flow has been positive in only 2 of the tracked fiscal years, indicating earnings have not reliably translated into distributable cash, which constrains financial flexibility.
- ✗The quality score of 38 is below the Metals sector leader (TATASTEEL at 44), and ROE for the current period is unavailable, leaving a gap in assessing current capital efficiency.
- ✗Revenue CAGR of 2.1% over 5 years is low relative to the earnings CAGR of 14.6%; if margin expansion is the primary earnings driver, any reversal in margins — from commodity price moves or cost pressure — would disproportionately affect the bottom line.
- ·Gravita India reported consolidated net sales of 1172.76 crore for March 2026 (Q4 FY26), up 13.08% YoY, alongside standalone sales of 914.60 crore, up 6.31% YoY — the consolidated-vs-standalone divergence points to subsidiaries contributing a growing share of revenue.
- ·The company announced a 160 crore capex for a copper recycling plant in Gujarat (May 2026), expanding beyond its existing lead-recycling focus; copper carries different raw material sourcing dynamics and margin profiles than lead.
- ·An investor call was held on May 8, 2026 covering FY26 results and growth outlook; news sentiment across 8 articles is 5 positive and 0 negative as of the run date.
- ?How much of the 14.6% five-year earnings CAGR is attributable to margin expansion versus volume growth, and what structural drivers could sustain or compress those margins?
- ?With debt-to-equity at 19.62 and rising, how does the interest coverage ratio trend over the past 3 years, and what proportion of operating cash flow is consumed by debt servicing?
- ?The copper recycling plant represents a new vertical with 160 crore in capex — what is the expected capacity utilisation timeline and how does the copper margin profile compare to the existing lead business?
- ?Given that free cash flow has been positive in only 2 of the tracked years, what conditions would need to be in place for consistently positive FCF as capex commitments expand?
PE
33.9
Forward PE
20.4
ROE
—
Profit margin
+9.3%
D/E
19.62
Dividend yield
+0.6%
Quality score
38/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
2/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.