Gravita India's Copper Entry Earns a Buy Rating, Target ₹1,900

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.