Gravita India share price surged over 9% in intraday trade on the BSE on Monday, November 3, in a lacklustre market. The small-cap stock opened at ₹1,685.90 against its previous close of ₹1,668.05 and jumped 9.2 per cent to an intraday high of ₹1,822. Around 12:30 pm, the stock traded 7.72 per cent higher at ₹1796.85. Equity benchmark Sensex was 0.18 per cent down at 83,789 at that time.
Gravita India share price has been under pressure this year, falling over 15 per cent, compared to an over 6 per cent gain in the benchmark Sensex.
The stock hit a 52-week low of ₹1,435 on March 3 this year after hitting a 52-week high of ₹2,474.05 on December 20 last year.
Gravita India Q2 results
On October 30, Gravita India reported a 33.3 per cent year-on-year (YoY) rise in its consolidated profit for Q2FY26 to ₹96 crore from ₹72 crore in the corresponding quarter of the previous financial year.
Revenue from operations for Q2 rose 12 per cent YoY to ₹1,035.50 crore from ₹927.42 crore YoY.
“In Q2FY26, Gravita saw YoY growth of 4 per cent, 12 per cent, 10 per cent, and 33 per cent in volumes, revenue, EBITDA, and PAT, respectively, maintaining a healthy ROIC of 25 per cent. Growth in value-added product contribution and domestic scrap sourcing underscores the company’s integrated model and efficiency gains,” said the company.
Gravita India: A stock to buy?
Top brokerage firms have maintained their views on the stock after the company’s Q2 performance.
Brokerage firm Axis Securities has maintained a buy call on the stock but trimmed the target price to ₹2,500 from ₹2,600 earlier.
Axis pointed out that Gravita reiterated its medium-term targets of achieving 25 pr cent volume CAGR and 35 per cent profit CAGR, while sustaining ROIC above 25 per cent.
According to the brokerage firm, the company’s volume traction is expected to strengthen in the second half of the financial year (H2FY26) as new capacities come onstream and the spillover volumes from Q2 are realised in subsequent months.
Emkay Global Financial Services, too, has maintained a buy call on the stock with a target price of ₹2,300.
According to the brokerage firm, the company’s “planned 125kt lead capacity expansion in FY26 and, consequently, by more than 100ktpa in out-years may drive meaningful earnings uplift, supported by a shift toward a realigned capex strategy focused on lower-capex-intensity brownfield projects.”
“The company is front-loading lead capacity expansion, which is margins-accretive and should enhance ROIC to 24 per cent (21 per cent earlier) as volumes ramp up,” Emkay said.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
