Gravita India Shares Can Rally 37% Says Motilal Oswal Maintaining 'Buy' —Here's Why

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Motilal Oswal Report

As a leading player in India’s rapidly growing recycling industry, Gravita India Ltd. is well positioned to capitalize on evolving market dynamics, driven by regulatory policy changes that are expected to increase the availability of domestic scrap— benefiting organized players such as Gravita.

Going forward, we expect the company to report robust earnings growth on the back of:

1. strategic capacity expansion across verticals and geographies,

2. an increased focus on value-added products, and

3. higher growth in new segments (rubber).

We expect a revenue/Ebitda/PAT CAGR of 30%/29%/32% over FY25-27. We value the stock at 31x FY27 EPS to arrive at our target price of Rs 2,300. We reiterate our Buy rating on the stock.

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