Why Did Gravita India Shares Jump by Up to 4% Today? Check the Reason

Synopsis: Gravita India shares rose 4% after the company announced a Rs 49 crore capex to expand lead recycling capacity by 80,300 MTPA at its Mundra plant. The expansion strengthens growth visibility, export advantage, and operational scale, while improving investor confidence in its long-term recycling business strategy.

The shares of this company, which is one of the largest lead producers in India and has its business organised across four specialised verticals: lead recycling, aluminium recycling, plastic recycling and turnkey projects, were in momentum today after the company announced its capex, which triggered a share price jump.

With a market cap of Rs 11,897 crore, the shares of Gravita India Ltd gained 4% in today’s trading session and reached a high of Rs 1,655.85. When compared to its previous day’s closing price of Rs 1,594.10, it is trading at a PE of 31.4 compared to its industry PE of 17.6. The shares have given a return of more than 1,600% in the last 5 years.

About the capex 

Gravita India’s shares rose by 4% as the company announced a large capacity addition at its recycling unit in Mundra, Gujarat. The news is a sign of continued momentum and cements its status as a leader in the global recycling industry. It would seem that investors have welcomed the magnitude of the expansion and the prudent use of capital.

Gravita India has added 80,300 MTPA lead recycling capacity at its Mundra facility, taking the total capacity of the recycling unit to 1,45,100 MTPA. This is a major addition and is in line with the company’s plans to cater to the growing demand for lead recycling products in the domestic and international markets. The company’s total installed recycling capacity now stands at 4,25,959 MTPA

The expansion was achieved with an investment of around Rs 49 crore, which was entirely done through internal accruals. This shows the company is generating strong cash flows and managing its capital effectively, which must have increased investor sentiment.

Strategic Location and Export Advantage

The proximity of the Mundra plant to the port gives it a strategic advantage in the importation of raw materials and export markets. Gravita has been operating in over 70 countries and has 13 manufacturing facilities across the globe. The company is expanding its global presence.

In conclusion, the 4% increase in the stock price is an indication of increased optimism about increased capacity, operational efficiency, and growth visibility in the recycling and circular economy space.

Financials

The revenue from operations for the company stood at Rs 1,017 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 996 crores, up by about 2 per cent YoY. Similarly, the net profit stood at Rs 97 crore in Q3 FY26, up compared to the Rs 78 crore profit in Q3 FY25.

Gravita’s partner ecosystem is a testament to its strong market integration and international reputation. The fact that it has partners like Amara Raja, Exide, Clarios, and Tata Batteries shows that it has strong market integration with the lead-acid battery value chain, which is its core recycling business. 

Partnerships with international trading and industrial majors like Glencore, Trafigura, Toyota Tsusho, and Thyssenkrupp are a strong testament to its sourcing and export markets. Moreover, its partnerships with companies like Panasonic, Polycab, KEI, Sterlite Power, and Asian Paints also show that it has strong end-user market exposure.

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