Synopsis: Gravita India Ltd has delivered exceptional wealth creation, with its share price soaring from Rs 82.5 to Rs 1,689 over the past five years, translating into gains of nearly 1,938 percent.
The stock mentioned in the article is one of the largest lead producers in India. The company’s business is organised across four specialised verticals: Lead Recycling (flagship), which also recycles aluminium, Plastic, and Turnkey projects.
With a market capitalization of Rs. 12,526 crores on Friday, the shares of Gravita India Limited are down by 2 percent, with a close price of Rs. 1,689 per share on Friday compared to its previous closing price of Rs. 1,725 per share. The shares currently trade at a P/E of 34.6x, above the average industry P/E.
On January 9, 2025, the shares of Gravita India Limited closed at Rs. 1,689, showing a gain of around 1,938 percent compared to the 5-year-old price of Rs. 82.85 on January 8, 2021 (5-year period). For example, if someone had invested Rs. 1 lakh in the company’s stock 5 years ago, it would have increased to around Rs. 20.38 lakh.
Gravita India Ltd at a glance
Gravita India Limited is a globally recognised recycler and manufacturer of non-ferrous metals, with a strong focus on lead, aluminium and plastic. With over three decades of experience, the company operates across 70+ countries, with exports contributing more than half of its consolidated revenue.
Its integrated business model spans recycling, refining and manufacturing, along with turnkey solutions for lead battery recycling plants. Gravita’s operations are supported by a diversified manufacturing footprint across India and international locations in Africa, Europe and Asia.
As of Q2 FY26, the company has a healthy order book of more than 60,000 MT with a capacity utilisation of 63 percent, resulting in a volume of 3.40 lakh MT production capacity. The company has 4 recycling verticals, 12 recycling plants and more than 1900 touch points globally for its verticals.
Gravita is progressing steadily towards Vision 2029 with a clear roadmap focused on scaling core operations and expanding into new recycling segments. The company targets strong volume and profit growth while improving capital efficiency and sustainability. Backed by decades of experience, global reach and ongoing capacity expansion, Gravita is well-positioned for long-term value creation.
The revenue from operations grew 11.75 percent to Rs 1,036 crore in Q2 FY26, corresponding to the same quarter in the last financial year. Net profit grew by 33 percent YoY to Rs 96 crore in Q2 FY26, resulting in an EPS growth to Rs 13.01 per share. Accompanied by ROCE of 21.5 percent and ROE of 21.2 percent, representing improved capital allocation by the company.
Strategic highlight and project update: Gravita’s expansion plans are progressing on track, with installed capacity reaching 3.40 lakh metric tonnes per annum and set to more than double to over 7 lakh metric tonnes by FY28. The company has realigned its capex to about Rs 1,225 crore, focusing on strengthening core businesses while investing in new recycling areas such as lithium-ion, paper and steel.
During H1 FY26, the company invested around Rs 105 crore in capex, with a further Rs 100 crore planned in H2 to support capacity expansion. As part of its diversification strategy, the pilot lithium and battery recycling unit at Mundra is set to go live in Q3 FY26, alongside phased lead capacity additions through FY26.
Gravita is also progressing with key expansion projects, including a 45,000- metric tonne capacity addition at Phagi, expected by December 2026. The Mundra rubber facility is set for commissioning in Q4 FY26, with revenues from FY27.
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The post ₹82 to ₹1,689: Recycling stock turns ₹1 Lakh to ₹20.38 Lakh in just 5 years appeared first on Trade Brains.