Buy Gravita India; target of Rs 2600: Emkay Global Financial

Emkay Global Financial is bullish on Gravita India has recommended buy rating on the stock with a target price of Rs 2600 in its research report dated January 23, 2025.

Broker Research

January 24, 2025 / 12:33 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Emkay Global Financial's research report on Gravita India

GRAV reported a stable quarterly performance, with Q3FY25 EBITDA of Rs1bn (+0.8% QoQ; +14.0% YoY). The company reported Lead EBITDA/kg of Rs19.03 for Q3 which is at the higher end of the guidance range of Rs18-19. The next leg of expansion is at the Mundra facility, which is expected to commission in 1HFY26. This would result in profitability boost sometime in mid-FY26, resulting in the company broadly achieving its volume growth target of 25%. The management reiterated EBITDA/kg guidance of Rs18-19 for Lead, Rs14 for Aluminium, and Rs10 for Plastic. The company plans bringing gross debt down to nil, and would be open to lever-up for the right M&A opportunities.

Outlook

We make modest changes to our assumptions which results in 3-5% decline to our EBITDA estimates for FY25-27. We revise down our TP to Rs2,600 (down 3.7%).

For all recommendations report, click here