Gravita India Soars 4% After Expert Prediction of 31% Further Growth for This Multibagger Stock

Gravita India’s stock price jumped by over 4% on Wednesday after the brokerage firm Motilal Oswal Financial Services (MOFSL) recommended buying the stock. Gravita India shares reached a high of ₹1,887.40 on the BSE, reflecting a 4.31% increase from the previous closing price.

Gravita India is a major player in the recycling industry, mainly focusing on recycling lead, which made up 88% of its revenue in FY24. The company also recycles aluminum and plastics and provides solutions to help customers set up recycling plants.

MOFSL started coverage of Gravita India with a ‘Buy’ rating and a target price of ₹2,350 per share, suggesting a potential 31% increase from the previous day’s closing price. They expect Gravita’s lead recycling business to continue growing strongly, driven by positive regulatory changes and the formalization of the sector.

The company is investing over ₹600 crore to more than double its production capacity by FY27. MOFSL believes that Gravita is well-positioned to benefit from the growing recycling industry in India and expects the company to show strong earnings growth.

However, MOFSL also pointed out some risks, including supply chain issues, regulatory changes, delays in expanding new facilities, and fluctuations in commodity prices.

Gravita India’s stock has delivered impressive returns to investors, increasing by over 36% in one month and nearly doubling in the last three months. The stock has surged over 70% so far this year and has provided a massive return of over 905% in the past three years.

By 10:10 am, Gravita India shares were trading 2.64% higher at ₹1,857.05 on the BSE.