Gravita India Limited

Industrials — Metal Fabrication · NSE

₹1,481.00+₹0.40 (+0.03%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Gravita India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gravita India Limited manufactures and recycles lead metal, lead products, aluminium alloys, and plastic granules in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees3,500

Annual revenue₹4,227 Cr

How does it make money?

Turns over ₹4,227 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 3,500 employees supports ₹1.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 18.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE18.7%

What is the outlook?

10 analysts covering the stock expect revenue to grow about 34.9% and earnings to grow about 25.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+34.9%

Est. earnings growth+25.9%

Analysts10

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +52% while net margin moved +24% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+52%

Margin effect+24%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROCE of 18.1% is comfortably above a typical cost of capital
✗ ROCE has fallen by 17.7 points — returns are eroding
✗ EBITDA margin of 11.1% is thin — little cushion if costs rise
• Net margin of 8.3% is reasonable
• Revenue has compounded at 14.9% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

27.5x

3Y Median

36.2x

40 monthly readings · mean 41.9x · range 26.3x–70.3x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 24% below its 3y median of 36.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 126% above the peer median of 12.2x.

vs. its own history

Cheap

36.2x median over 40 months · -24%

vs. sector peers

Expensive

12.2x median of 4 peers · +126%

vs. generic bands

Fair

15x–35x

EV/EBITDA

24.4x

PEG

1.17

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 8.5% to 11.1% over 3 years.
Very low debt
Debt/Equity of 0.30x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 34.1% to 15.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 35.8% to 18.1% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 112% over 3 years, from ₹348 Cr to ₹736 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 214% against revenue up 52% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹46 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 8.5% to 11.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 24% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 214% against revenue up 52%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 126% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 34.1% to 15.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.9% CAGR
Latest reported year was 41.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹46 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹10,787 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.5x

Fair

Fairly valued against the generic band

P/B Ratio

4.40x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹53.81

Profitable

Profitable on a per-share basis

ROE

15.5%

Strong

Strong capital efficiency

ROCE

18.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

41.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.43%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹46 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

19.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.7%

Average

Average margins

Net Margin

8.3%

Average

Average bottom-line conversion

Current Ratio

2.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1496.1 / 1649.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,787 Cr	₹3,143 Cr	₹3,839 Cr	₹4,227 Cr	+14.9%
EBITDA	₹237 Cr	₹316 Cr	₹348 Cr	₹470 Cr	+25.7%
EBITDA Margin	8.5%	10.0%	9.1%	11.1%	—
PAT (Net Profit)	₹201 Cr	₹239 Cr	₹312 Cr	₹379 Cr	+23.5%
EPS	₹29.72	₹34.88	₹45.11	₹52.02	+20.5%
ROE	34.1%	28.6%	15.1%	15.5%	—
ROCE	35.8%	28.1%	17.4%	18.1%	—
Total Debt	₹348 Cr	₹548 Cr	₹286 Cr	₹736 Cr	+28.4%
Free Cash Flow	₹92 Cr	-₹56 Cr	₹175 Cr	-₹46 Cr	—

🟢 Revenue has grown at 14.9% a year over 3 years.

🟢 EBITDA has grown at 25.7% a year over 3 years.

🟢 EBITDA Margin has risen from 8.5% to 11.1% over 3 years (+2.6 pts).

🟢 PAT (Net Profit) has grown at 23.5% a year over 3 years.

🟢 EPS has grown at 20.5% a year over 3 years.

🔴 ROE has fallen from 34.1% to 15.5% over 3 years (-18.7 pts).

🔴 ROCE has fallen from 35.8% to 18.1% over 3 years (-17.7 pts).

🔴 Total Debt has grown at 28.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹92 Cr to -₹46 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,417 Cr

Total Liabilities

₹959 Cr

Cash & Equivalents

₹80 Cr

Operating Cash Flow

₹169 Cr

Capex

-₹216 Cr

Shareholding (proxy)

Institutional Holding

10.9%

Insider Holding

59.4%

Corporate Actions

Dividend Rate

₹6.35

Ex-Dividend Date

08 May 2025

Analyst Consensus

Recommendations

10 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹2,001.7

+35.2% vs CMP

Target Range

₹1,765 – ₹2,260

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

3 mixed3 general

Gravita India (NSEI:GRAVITA) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Gravita India Limited (GRAVITA.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 09 Oct

Gravita India: Best Stock in Its Sector? Key Metrics

Univest, 25 Sept

Earnings call transcript: Gravita India Q1 2026 stock falls 7% on supply woes

Investing.com, 28 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Gravita India shares fall 8% after Q1 results; announces unit closure

Business Standard, 28 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Gravita India Ltd is Rated Hold by MarketsMOJO

MarketsMojo, 16 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑