Gravita India Ltd.
NSE: GRAVITAGravita India Ltd.: A 30-second snapshot
Gravita India is a Metals-sector recycling company trading at ₹1,688.10, down 10.42% over the past 12 months and 22.21% below its 52-week high. The trailing PE is 32.47 with a forward PE of 20.60, reflecting consensus expectations of a material earnings step-up; however, 5-year earnings growth has been -3.2% while debt-to-equity stands at 29.93 and is rising. The company reported FY26 revenue of ₹4,265 Cr and PAT of ₹378 Cr, and has approved a ₹160 Cr copper recycling plant in Gujarat as part of a broader ₹700 Cr copper expansion plan.
P/E
32.5
Forward P/E
20.6
ROE
+16.7%
Debt / Equity
29.93
Profit Margin
+8.7%
Div. Yield
+0.6%
5Y ROE > 15%
4/5
5Y FCF > 0
2/5
Quality
52/100
News
8 headlines · 2 positive · 1 negative
Gravita India FY26 Results: Revenue ₹4,265 Cr, PAT ₹378 Cr; Copper Expansion Planned - scanx.trade
scanx.trade
Gravita India Plans ₹160 Cr Copper Plant to Boost Recycling Capacity - Whalesbook
Whalesbook
Gravita India Q4 profit slips 3%, revenue up; board okays Gujarat copper recycling plant - CNBC TV18
CNBC TV18
Gravita India Share: Will Its ₹700 Crore Entry Into Copper Recycling Be Profitable? - Trade Brains
Trade Brains
Gravita India Limited Opens Special Window for Re-Lodgement of Physical Share Transfer Requests - scanx.trade
scanx.trade
Recent context
- ·CNBC TV18 reported Q4 FY26 profit slipped 3% year-on-year while revenue rose, and the board approved a copper recycling plant in Gujarat — the first phase of a stated ₹700 Cr copper expansion.
- ·Trade Brains noted the copper recycling entry as a strategic pivot; the profitability of the ₹700 Cr commitment is described as an open question in current coverage.
- ·News flow across 8 articles over the period is predominantly neutral (5) with 2 positive and 1 negative, reflecting a mixed-to-cautious reception of the expansion announcement against a backdrop of near-term earnings pressure.
Strengths
- +ROE of 16.68% has exceeded 15% in 4 of the tracked years, indicating a degree of return-on-equity persistence above a commonly watched threshold.
- +5-year revenue growth of 13.1% reflects consistent top-line expansion in the recycling segment, with FY26 revenue reaching ₹4,265 Cr.
- +The stock is currently above both its 50-DMA (₹1,549.67) and 200-DMA (₹1,665.15), with RSI at 54.59 in the neutral zone — no technical extreme in either direction.
- +Analyst mean rating of 1.2 across 10 analysts on a 1–5 scale (lower = more constructive) indicates a constructive aggregate view among the tracked analyst set.
Weaknesses
- −Debt-to-equity of 29.93 is substantially above typical metals-sector levels, and the debt trend is classified as rising — capital intensity is high and leverage is expanding alongside the copper expansion plan.
- −Free cash flow was positive in only 2 of the tracked years, indicating that reported earnings have not been consistently matched by cash generation; this is a structural characteristic of highly capital-intensive recycling operations.
- −5-year earnings growth of -3.2% is negative despite 13.1% revenue growth, pointing to margin compression over the period; Q4 FY26 profit slipped 3% year-on-year, continuing the recent pressure on profitability.
- −Quality score of 27 ranks GRAVITA 4th of 6 among Metals peers, below HINDALCO, JSW Steel, and Tata Steel on the composite quality metric.
Open questions
- ?Does the planned ₹700 Cr copper expansion improve the cash conversion cycle, or does it deepen the structural gap between reported earnings and free cash flow?
- ?What is driving the divergence between 13.1% revenue growth and -3.2% earnings growth over 5 years — is it input cost volatility, working capital intensity, or a structural shift in recycling margins?
- ?How does GRAVITA's debt-to-equity of 29.93 compare to its own historical leverage levels, and at what coverage ratio does the rising debt trend become a constraint on operations?
- ?The forward PE of 20.60 implies a significant earnings recovery from the trailing PE of 32.47 — what specific operating or margin improvements are embedded in that consensus forecast?
Peer comparison: Metals
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| GRAVITA | Gravita India Ltd.You're viewing | 32.5 | +16.7% | 27 |
| Industry avg | across 5 peers | 23.8 | +17.4% | 38 |
| JSWSTEEL | JSW Steel Ltd. | 14.0 | +27.3% | 45 |
| TATASTEEL | Tata Steel Ltd. | 29.5 | +11.2% | 45 |
| HINDALCO | Hindalco Industries Ltd. | 14.8 | — | 38 |
| ADANIENT | Adani Enterprises Ltd. | 36.9 | +13.7% | 22 |
| DUMMYVEDL1 | Dummy Vedanta Ltd. 1 | — | — | — |
Technical state
Current price
₹1,688.10
SMA 50
₹1,549.67
SMA 200
₹1,665.15
RSI (14)
54.6 (neutral)
From 52w high
-22.2%
1Y return
-10.4%
3M return
-0.2%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 29.93 is exceptionally elevated; the metals sector median typically sits below 1.5, and GRAVITA's leverage is further characterised as rising, meaning the debt burden is expanding rather than contracting.
- highFree cash flow was positive in only 2 of the tracked years, indicating the business has not consistently converted earnings into cash; 5-year earnings growth of -3.2% alongside 13.1% revenue growth suggests profitability has deteriorated even as the top line expanded.
- mediumQuality score of 27 ranks GRAVITA 4th of 6 in the Metals peer group, below HINDALCO (38), JSWSTEEL (45), and TATASTEEL (45); sector comparison is further limited by missing ROE and 1-year price-change data across most peers.
- mediumStock is down 10.42% over 12 months and 22.21% below its 52-week high, despite trading above both the 50-DMA (₹1,549.67) and 200-DMA (₹1,665.15); the gap between the 52-week high and current price indicates a significant overhang that has not been recovered.
- lowOne peer entry (DUMMYVEDL1) appears to be a placeholder with all null values, reducing the effective peer set to 4 comparable companies and limiting the robustness of sector ranking conclusions.
Cross-section contradictions
- 5-year revenue growth of 13.1% is positive, but 5-year earnings growth of -3.2% is negative, indicating that margins have compressed materially over the same period — the business is growing revenue without growing profit.
- Forward PE of 20.60 implies a meaningful step-down from the trailing PE of 32.47, suggesting analyst models embed a significant earnings recovery; yet the 5-year earnings growth trend has been negative, making the basis for that recovery a key open question.
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.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days