Motilal Oswal Reiterates 'Buy' on Gravita India, Sees Strong Upside from Value-Added Products and Global Expansion

Motilal Oswal has reiterated a ‘Buy’ rating on Gravita India, projecting strong upside potential driven by the company’s strategic shift toward value-added products and global scrap sourcing expansion. The brokerage firm has set a target price of ₹880, suggesting a healthy return from current levels.

Gravita India, a leading recycling company, has been focusing on improving its product mix by increasing the share of value-added products, which offer better margins compared to traditional offerings. This pivot, coupled with expansion in its global scrap network, is expected to significantly boost profitability and scale.

Strong Margins and Operational Efficiency

According to Motilal Oswal, the company has demonstrated strong operational performance and margin resilience over recent quarters. The emphasis on automation, efficient scrap procurement, and diversified sourcing from international markets like Africa, Sri Lanka, and the Middle East is likely to further support its growth.

Capitalizing on Circular Economy Trends

Gravita is well-positioned to benefit from the increasing global focus on sustainable practices and circular economy models. With a growing demand for recycled lead, aluminum, and plastic, the company’s integrated business model puts it at a strategic advantage.

Financial Outlook

Motilal Oswal expects Gravita to continue delivering robust earnings growth, backed by higher capacity utilization, better margins, and expansion into new geographies. The brokerage highlights strong return ratios, improving cash flows, and disciplined capital allocation as additional positives.

With these growth levers in place, the stock remains an attractive long-term bet for investors seeking exposure to the recycling and sustainability sectors.