If You'd Invested Rs 10,000 in Gravita India Stock 10 Years Ago, Here's How Much You'd Have Today

Established in 1992, Gravita India Ltd. has emerged as a leading and esteemed player in India's recycling industry.

Gravita specializes in recycling used batteries, cable scrap, aluminum scrap, plastic scrap, and various forms of lead waste, demonstrating its dedication to waste reduction and environmental preservation.

The company offers an extensive product line, including pure lead, specialized lead alloys, lead sheets, lead powder, and PET flakes, catering to diverse industries worldwide.

What distinguishes Gravita is its emphasis on technological innovation, ensuring that its recycling processes are both efficient and environmentally friendly.

By continuously improving its methods and broadening its capabilities, the company not only contributes to a more sustainable economy but also strengthens its market position as a reliable supplier of high-quality recycled materials.

With a strong commitment to environmental stewardship and consistent value creation for its stakeholders, Gravita India Ltd. is propelling the future of green manufacturing in India and beyond.

Let's take a look...

About Gravita India

Gravita India Ltd is the largest lead producer in India.

The company provides sustainable solutions through its diversified business model, with operations spread across five specialized verticals: lead recycling, aluminum recycling, plastic recycling, rubber recycling, and turnkey solutions.

While lead recycling remains the company's flagship segment, it has also established a strong presence in recycling materials like aluminum and plastic, making it a leader in resource recovery.

The company is headquartered in Jaipur with 11 existing recycling plants in Rajasthan, Gujarat, Andhra Pradesh, Jammu & Kashmir, Sri Lanka (Mirigama export zone), Ghana (Accra), Mozambique (Maputo), Senegal (Dakar), Tanzania (Dar-es-Salam) and Togo.

It has a recycling capacity of approximately 3,02,859 MT for lead, aluminium, plastic, and rubber, with 2 upcoming facilities in Oman & Dominican Republic.

Gravita India vs Sensex

If you had invested Rs 10,000 in Gravita India 10 years ago, your investment would be worth Rs 278,191 today.

This represents a staggering 2,681.9% return over 10 years.

In comparison, the Sensex would have given you a return of 210.9% during the same period.

The stock has consistently performed since its listing on the exchanges. Since being listed in 2010, the stock price has rallied over 5,904.6%.

Despite the lows caused by the coronavirus pandemic in early 2020, Gravita India's shares have displayed remarkable resilience, bouncing back strongly.

Robust Financial Performance

In the first quarter of fiscal year 2025, Gravita India's revenue increased by 29% to Rs 9.1 bn, with 47% of the revenue attributed to value-added products.

The company reported volumes of 41,900 tons for lead, 2,460 tons for aluminum, and 3,190 tons for plastic during this period. There was an overall volume growth of 29% in Q1 FY25.

The capacity utilization for lead, aluminum, and plastic stood at approximately 70%, 45%, and 40% respectively.

The EBITDA for the quarter grew by 33% YoY to Rs 912.4 m, resulting in an EBITDA margin of 10.1%.

The quarterly EBITDA per ton was Rs 19,321 for lead, Rs 19,414 for aluminum, and Rs 10,077 for plastic.

The company's profit after tax (PAT) also increased by 29% YoY to Rs 673.3 million (m), with a PAT margin of 7.4%.

Here's a table showing the financial performance of Gravita India for the past 5 years -

Gravita India Financial Snapshot (2020-24)

Rs m, standalone	FY20	FY21	FY22	FY23	FY24
Net Sales	22,643	7,767	18,786	35,415	42,702
Growth (%)	21%	-66%	142%	89%	21%
Operating Profit	7,784	2,727	9,494	13,967	16,307
OPM (%)	34%	35%	51%	39%	38%
Net Profit	5,131	1,870	6,596	10,059	11,113
Net Margin (%)	23%	24%	35%	28%	26%
ROE (%)	43.0	13.5	39.7	46.3	38.9
ROCE (%)	62.0	19.2	53.9	63.0	53.1
Dividend (Rs)	2.5	1.0	3.5	5.5	6.5
Debt to Equity (x)	0.0	0.0	0.0	0.0	0.0

Data Source: Ace Equity

Recent Fundraising

The company recently announced in its board meeting that it aims to raise up to Rs 10 bn through various funding options, including equity or debt instruments.

This move will allow Gravita India to raise capital through private placements, public issues, or other permissible modes as per regulatory guidelines.

The company plans to seek shareholder approval for these fundraising initiatives through a postal ballot.

What Next?

Looking forward, the company is venturing into new business opportunities. Among these is a pilot project for lithium-ion recycling, along with plans to establish India's first tyre recycling plant, expected to be operational by H1 FY26. Furthermore, paper and steel recycling plants are slated for launch by FY27.

Additionally, it plans to increase the non-lead business share to over 30%, by utilizing more than 30% renewable energy and reducing energy consumption by over 10%.

Moreover, Gravita is focusing on building a circular economy in the rubber recycling space by producing pyrolysis oil and crumb rubber, with plans to import tyres for its operations in India.

In the lithium-ion recycling segment, the company will begin with black mass conversion and crumb rubber production, adding further value to its processes.

Going forward, the company's future goals include expanding its existing verticals, with a target of over 25% CAGR growth.

Additionally, Gravita has set ambitious profitability growth targets, aiming for a growth rate above 35%, while striving for a Return on Capital Employed (RoCE) exceeding 25%.

To support its expansion, the company is targeting 25% volume growth on a CAGR basis. Utilization rates are expected to improve through the implementation of an aluminum hedging mechanism, and overall capacity utilization is projected to range between 60% and 70% for FY25.

Regulatory shifts, such as EPR compliance, are also playing a key role in supporting organized recycling efforts, particularly in the lead-acid battery segment.

Gravita's management is optimistic about its future growth, driven by strategic initiatives and value creation through sustainable development.

Conclusion

In conclusion, Gravita India Ltd. stands out as a dynamic player in the Indian recycling sector, leveraging its focus on sustainability, innovation, and resource optimization.

The company's strategic initiatives, including expanding into lithium-ion and tyre recycling, underscore its commitment to staying ahead of industry trends and supporting a circular economy.

Looking at the broader industry, the recycling sector is poised for significant growth due to several key drivers.

Firstly, global resource depletion and the rising cost of raw materials are pushing industries to recycle and reuse materials, driving demand for efficient recycling solutions.

Secondly, regulatory changes, such as stricter environmental laws and waste management policies, are forcing industries to adopt sustainable practices. Governments worldwide are offering incentives and imposing penalties to ensure compliance, which will further boost the recycling industry.

Thirdly, consumer awareness of environmental impacts is growing, encouraging businesses to adopt eco-friendly practices, which aligns with the goals of the recycling industry.

As industries move toward circular business models, recycling will become a central pillar of industrial operations.

Gravita's proactive approach to expanding its non-lead business, adopting renewable energy, and exploring new ventures positions it to take advantage of these industry trends.

For investors, the recycling industry offers tremendous potential for long-term growth, and Gravita is well-positioned to capitalize on this momentum, making it a compelling investment opportunity.

We encourage investors to explore Gravita's factsheet and quarterly results to gain a deeper understanding of its growth trajectory.

Happy investing!

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