GRAVITA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

📊 Core Financials & Profitability

EPS (₹46.5) combined with strong PAT (₹93.1 Cr.) — consistent profitability backed by sound operations.

ROCE (21.6%) & ROE (21.5%) — excellent return ratios, pointing to high capital efficiency.

Debt-to-Equity (0.14) — very low leverage, enhancing financial resilience.

Qtr Profit Var (38.2%) — solid sequential growth; momentum looks healthy.

Gravita's financial health paints a picture of a well-managed, earnings-rich business with minimal debt stress.

📈 Valuation Indicators

Metric Value Interpretation

P/E Ratio 40.7 High vs industry PE (18.8) — reflects growth premium

P/B Ratio ~6.67 Elevated — investor willingness to pay for asset-light returns

PEG Ratio 1.34 Justifiable — aligns with earnings growth trajectory

Intrinsic Value — Estimated range ₹1,700–₹1,800 — fairly valued currently

Price levels reflect optimism; attractive only if growth sustains and margins expand.

🏭 Business Model & Competitive Edge

Segment: Recycling and manufacturing of non-ferrous metals — lead, aluminum, plastic.

Strengths

ESG-friendly niche — tailwind from sustainability push.

Global export footprint — well-diversified client base.

Low debt and high returns — stands out among metal peers.

Concerns

DII Holding ↓ (-1.03%) — indicates lowered domestic institutional conviction.

Modest Dividend Yield (0.34%) — preference for reinvestment over payouts.

Volatility in commodity prices — could affect margins.

📉 Technical Indicators & Entry Zone

Current Price: ₹1,867

DMA 50 / 200: ₹1,804 / ₹1,834 — price above averages, strong technical support

RSI (59.6): Neutral-bullish — mid-uptrend zone

MACD (+4.30): Bullish crossover — momentum favoring upside

Volume slightly below 1-week avg — consolidation phase

🛒 Suggested Entry Zone: ₹1,750–₹1,820 Ideal for staggered entries — look for price dips below ₹1,800 with RSI stabilizing between 50–55.

🔭 Long-Term Holding View

Gravita is favorably placed to benefit from global circular economy trends, growing metal demand, and sustainability regulations.

Expect further re-rating if ROCE maintains >20% and export volumes rise steadily.

Good pick for medium-risk investors looking for a diversified industrial stock with long-term potential.

Want to see how Gravita stacks up against Hindustan Copper, NALCO, or MMP Industries? I can line up a profitability and valuation matrix next to expose hidden edges. ⚙️📈 Let’s turn some metal into momentum!

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