Overview

• Motilal Oswal has maintained a Buy rating on Gravita India with a target price of Rs 2,300 per share, indicating a 37% upside.
• The brokerage anticipates a 30% revenue, 29% EBITDA and 32% PAT CAGR between FY25 and FY27 driven by capacity expansion and a premium product mix.
• Enforcement of Environmental Compensation penalties under EPR norms lifted Gravita’s domestic scrap sourcing by 60% in FY25, easing working capital pressures.
• Gravita plans to commission its first rubber recycling plant in Mundra by the first half of FY26 and is piloting lithium-ion battery recycling projects.
• Management aims to boost non-lead revenue contribution from 12% in FY25 to 30% by FY29, targeting high growth in the rubber segment.