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Gravita India shares rise 24% in two sessions, overbought on charts; here's why 

Gravita India shares rise 24% in two sessions, overbought on charts; here's why 

Gravita India stock rose 15% to Rs 2,237.70 today against the previous close of Rs 1,950.20 on BSE.  Market cap of the firm stood at Rs 15,001 crore.

Aseem Thapliyal
Aseem Thapliyal
  • Updated Aug 16, 2024 1:09 PM IST
Gravita India shares rise 24% in two sessions, overbought on charts; here's why Gravita India stock is trading higher than the 5 day, 10 day, 20 day, 30 day , 50 day, 100 day , 150 day and 200 day moving averages.

Shares of Gravita India rose 24% in the last two sessions after brokerage Motilal Oswal initiated coverage on the stock. The brokerage expects the stock to reach the Rs 2,350 mark in a year. Gravita India stock, which closed at Rs 1,810.55 on August 13 rose to a record high of Rs 2237.70 in the current session, climbing 24% during the period. 

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Gravita India stock rose 15% to Rs 2,237.70 today against the previous close of Rs 1,950.20 on BSE. 
Market cap of the firm stood at Rs 15,001 crore.

The stock has risen 545% in two years. The stock also delivered multibagger returns of 958% returns in three years.

Total 1.10 lakh shares of the firm changed hands amounting to a turnover of Rs 23.13 crore on BSE.

Gravita India shares have a beta of 0.9, indicating low volatility in a year. In terms of technicals, the relative strength index (RSI) of the stock stands at 75.5, signaling it's trading in the overbought zone. The stock is trading higher than the 5 day, 10 day, 20 day, 30 day , 50 day, 100 day , 150 day and 200 day moving averages.

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Motilal Oswal said the company would be a key beneficiary of the growing recycling industry in India. 

"Gravita currently trades at 31x/23x FY26E/FY27E EPS with an RoE/RoCE of 30%/25% in FY27E. We believe that the company will be a key beneficiary of the growing recycling industry in India and is poised to secure its share within the market led by multiple moats built around over the years. We initiate coverage on the stock with a BUY rating and a price target of Rs 2,350 (based on 35 times Sep’26E EPS)," said the brokerage. 

Key downside risks are supply chain issues and logistic disruptions, unfavorable regulatory changes, a delay in the ramp-up of new facilities, and volatility in commodity prices where the company has not fully hedged, it added. 

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Gravita India is engaged in lead processing, aluminium processing, trade (Lead products and aluminium scrap) and dealing in Turn-key lead recycling projects. The company carries out smelting of lead battery scrap / lead concentrate to produce secondary lead metal, which is further transformed into Pure Lead, Specific Lead Alloy, Lead Oxides (Lead sub-oxide, Red Lead, and Litharge) and Lead products like Lead sheets, Lead powder, Lead shot etc. Further, the company has also entered in the PET product manufacturing.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Aug 16, 2024 1:09 PM IST
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