⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GRAVITA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | GRAVITA | Market Cap | 10,630 Cr. | Current Price | 1,440 ₹ | High / Low | 2,170 ₹ |
| Stock P/E | 35.3 | Book Value | 231 ₹ | Dividend Yield | 0.44 % | ROCE | 21.4 % |
| ROE | 18.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,593 ₹ | DMA 200 | 1,698 ₹ |
| Chg in FII Hold | 1.10 % | Chg in DII Hold | -0.16 % | PAT Qtr | 72.2 Cr. | PAT Prev Qtr | 87.2 Cr. |
| RSI | 34.8 | MACD | -54.8 | Volume | 4,34,429 | Avg Vol 1Wk | 3,26,102 |
| Low price | 1,380 ₹ | High price | 2,170 ₹ | PEG Ratio | 0.53 | Debt to equity | 0.11 |
| 52w Index | 7.64 % | Qtr Profit Var | 111 % | EPS | 40.8 ₹ | Industry PE | 16.6 |
📊 Core Financials
- Quarterly PAT declined from ₹87.2 Cr. to ₹72.2 Cr., showing short-term weakness.
- ROCE at 21.4% and ROE at 18.5% → strong efficiency compared to peers.
- Debt-to-equity ratio of 0.11 → very low leverage.
- Cash flows supported by recycling and metals business, though cyclical in nature.
💹 Valuation Indicators
- P/E Ratio: 35.3 vs Industry PE of 16.6 → trading at a premium.
- P/B Ratio: ~6.2x (₹1440 / ₹231) → high valuation relative to book value.
- PEG Ratio: 0.53 → attractive valuation relative to growth.
- Intrinsic Value: Current price slightly above fair zone, supported by strong fundamentals.
🏢 Business Model & Competitive Advantage
- Leader in recycling and non-ferrous metals with global presence.
- Strong efficiency metrics provide competitive edge.
- Exposure to commodity cycles may affect earnings stability.
📈 Technical & Entry Zone
- Current Price: ₹1440, below 50 DMA (₹1593) and 200 DMA (₹1698).
- RSI: 34.8 → oversold zone, potential rebound.
- MACD: -54.8 → bearish momentum.
- Entry Zone: Attractive accumulation between ₹1380–₹1420.
- Long-Term Holding: Suitable for investors with 3–5 year horizon, given strong fundamentals.
✅ Positive
- Strong ROCE and ROE.
- Low debt levels.
- FII holdings increased by 1.10%, showing foreign investor confidence.
⚠️ Limitation
- Quarterly profit decline raises short-term concerns.
- High P/E and P/B ratios reflect premium valuation.
📉 Company Negative News
- Stock corrected sharply from 52-week high of ₹2170.
- Quarterly PAT declined from previous quarter.
- DII holdings decreased (-0.16%).
📈 Company Positive News
- EPS of ₹40.8 reflects profitability despite cyclical pressures.
- FII inflows indicate strong foreign investor confidence.
🏭 Industry
- Recycling and metals industry supported by sustainability demand and global commodity cycles.
- Industry PE at 16.6 indicates moderate investor confidence.
🔎 Conclusion
GRAVITA is a recycling and metals company with strong efficiency metrics, low debt, and global presence.
Despite short-term earnings weakness, its fundamentals remain solid.
Valuations are premium but PEG ratio suggests growth potential.
Best accumulated around ₹1380–₹1420 for investors with a 3–5 year horizon.