This Ashish Kacholia stock zooms 6%; here's why

New Delhi: Gravita India, a stock held by ace investor Ashish Kacholia, jumped 6 per cent during intraday trade on Monday after the company said its plant in Senegal has started aluminium recycling.

Marking its presence at a global level, Gravita India announced that it has started commercial production of aluminium from a new recycling plant situated in Senegal, West Africa.

The capacity in Senegal at its step-down subsidiary is 4,000 metric tonnes per annum (MPTA), the filing added.

Gravita India is expecting an additional annual revenue of Rs 60 crore with a gross margin close to 20 per cent from the new capacity, the company's release said. The group made an investment of Rs 3.5 crore which was from internal accruals.

Following the announcement, shares of Gravita India rallied 6 per cent to Rs 362.80 before giving up gains partially. The scrip settled at Rs 342.35 in the previous session on BSE.

The company will be procuring domestic aluminium scrap for the purpose of production from this plant and it will cater to the needs of aluminium die casting components manufacturing industries of Auto & FMCG sector located in China, Japan and Vietnam, the company said.

Gravita Group is among well-known recycling companies across the globe and capacity expansion of this plant will help it to change its sales mix by increasing the contribution of aluminium business.

Shares of Gravita India have jumped close to 80 per cent in the last one year, whereas the stock is up by about 15 per cent in the last six months.

Jaipur-based Gravita India is the flagship company of the Gravita Group which was established in the year 1992.

Seasoned investor Ashish Kacholia owned 12,49,608 equity shares or 1.81 per cent stake in the company as of June 30, 2022. The company is yet to announce its latest shareholding pattern for the period ended September 2022.