Gravita India's entry into copper recycling through Rashtriya Metal Industries and a ₹700 crore capex push leads to a brokerage buy rating with a ₹1,900 target. Management targets 25% volume CAGR.
Alpha Score of 67 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Gravita India, one of the largest lead producers in the country, is moving into copper. The company bought a 99.44% stake in Rashtriya Metal Industries, gaining entry into copper and copper alloy recycling. The deal opens access to end-markets in electrical equipment and power infrastructure. Gravita also plans to build a backward-integrated copper recycling facility in Mandvi, Gujarat. The management expects the copper business to generate returns above 20% ROCE.
The brokerage note pointed to the capex increase as a key signal. Gravita raised its cumulative FY29 capex guidance to ₹1,700 crore from the earlier ₹1,200 crore. Nearly ₹700 crore of that is earmarked for the copper segment. The brokerage said the investment should support the company's targeted growth path.
Management is targeting 20-25% volume CAGR over three years and roughly 35% earnings CAGR in the same period. Any move into adjacent recycling areas such as paper or steel would depend on demand and return expectations.
The brokerage issued a buy rating with a target price of ₹1,900 a share.
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