Gravita shares analysis


Here's a comprehensive analysis of Gravita India Ltd's stock performance and financial health as of May 24, 2025:


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### 📊 Stock Overview


* **Current Price**: ₹1,953

* **52-Week Range**: ₹915 – ₹2,700

* **Market Capitalization**: ₹14,415 crore

* **P/E Ratio**: 46.1

* **P/B Ratio**: 7.27

* **Dividend Yield**: 0.33%

* **Return on Capital Employed (ROCE)**: 21.6%

* **Return on Equity (ROE)**: 21.5%

* **Debt-to-Equity Ratio**: 0.28

* **Altman Z-Score**: 13.8 (indicating strong financial stability) 


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### 📈 Financial Performance


* **Q4 FY25 Revenue**: ₹1,072.82 crore

* **Q4 FY25 Net Profit**: ₹95.13 crore

* **FY25 Total Revenue**: ₹3,980.61 crore

* **FY25 Net Profit**: ₹312.39 crore

* **Year-over-Year PAT Growth**: 37.91%

* **Year-over-Year Sales Growth**: 22.4% 


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### 🏭 Business Segments


Gravita India operates in the following sectors:


* **Lead**: Lead alloys, sheets, bricks, red lead, lead oxide

* **Aluminium**: Customized aluminium alloys

* **Plastic**: Plastic granules, PET flakes (food grade)

* **Rubber**: Tyre oil 


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### 📉 Valuation Insights


* **Intrinsic Value Estimate**: ₹1,299.37


  * **Discounted Cash Flow (DCF) Value**: ₹1,005.16

  * **Relative Valuation**: ₹1,593.57

* **Overvaluation**: Approximately 33% compared to current market price 


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### 📊 Analyst Ratings & Price Targets


* **Average Target Price**: ₹2,404 (23% upside potential)

* **Analyst Consensus**: Strong Buy 


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### 📈 Stock Performance


* **1-Year Return**: +87.86%

* **3-Year Return**: +634%

* **5-Year Return**: +6,026%

* **10-Year Return**: +6,333% 


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### 🧾 Shareholding Pattern (as of March 2025)


* **Promoters**: 59.27%

* **Domestic Institutional Investors (DII)**: 5.43%

* **Foreign Institutional Investors (FII)**: 14.03%

* **Others**: 21.27%

* **Promoter Pledging**: None 


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### 🧠 Investment Considerations


**Strengths**:


* Robust financial growth with significant returns over multiple timeframes

* Diversified product portfolio across metals and recycling sectors

* Strong financial stability indicated by low debt and high Altman Z-Score

* Positive analyst outlook with substantial upside potential


**Risks**:


* Current market price is approximately 33% above intrinsic value estimates

* High P/E and P/B ratios suggest premium valuation

* Potential market volatility due to global commodity price fluctuations


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### 🔍 Conclusion


Gravita India Ltd demonstrates strong financial performance and growth potential, making it an attractive option for investors seeking exposure to the metals and recycling industry. However, the current premium valuation warrants cautious investment, possibly considering entry during market corrections or dips.



 

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