Buy Gravita India, target price Rs 430: Emkay Global

Emkay Global has buy call on Gravita India with a target price of Rs 430. The current market price of Gravita India Ltd. is Rs 272.1. Time period given by analyst is one year when Gravita India Ltd. price can reach defined target.

Gravita India Ltd., incorporated in the year 1992, is a Small Cap company (having a market cap of Rs 1880.59 Crore) operating in Metals - Non Ferrous sector.

Gravita India Ltd. key Products/Revenue Segments include Lead, Aluminium, Plastics, Turnkey Project, Export Incentives, Scrap, Others, Job Work, Sale of services for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 665.55 Crore, up 18.75 % from last quarter Total Income of Rs 560.47 Crore and up 53.70 % from last year same quarter Total Income of Rs 433.02 Crore. Company reported net profit after tax of Rs 45.60 Crore in latest quarter.

Investment Rationale
The brokerage estimates Gravita to record 24% revenue/25% PAT CAGRs in FY22-26E on the back of 27% growth in volume. It value the company using DCF with a Mar’23E TP of Rs 430

Promoter/FII Holdings
Promoters held 73.0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 1.21 per cent, DIIs 0.14 per cent.