Target ₹1,900

CMP: ₹1,727.30

Gravita India is one of the largest lead producers in India. It has strengthened its long-term growth strategy through the acquisition of a 99.44 per cent stake in Rashtriya Metal Industries, marking its entry into the copper and copper alloys value chain. The transaction broadens the company’s product portfolio and provides access to specialised end-markets such as electrical equipment, power infrastructure and defence applications. It also plans to establish a backward-integrated copper recycling facility at Mandvi, Gujarat, which is expected to improve profitability and support the management’s targeted return profile of over 20 per cent ROCE for the copper business. The management has increased its cumulative FY29 capex guidance to ₹1,700 crore from ₹1,200 crore earlier, with nearly ₹700 crore earmarked for the copper segment.

We expect Gravita to sustain a healthy volume growth trajectory, with the management targeting a 20-25 per cent CAGR over the next three years. The management has reiterated its medium-term objective of achieving approximately 25 per cent CAGR in volumes and 35 per cent CAGR in earnings. Any potential diversification into adjacent areas such as paper or steel recycling will remain contingent upon favourable demand dynamics and attractive return expectations.

We recommend a BUY on the stock with a target price of ₹1,900/share.

Published on June 19, 2026