Check Before You Invest : Gravita India Ltd

Snapshot

Q.1 Which industry/sub-sector does Gravita India Ltd belong to?

Gravita India Ltd belongs to the Metals & Mining sector, operating specifically within the Metal - Non Ferrous segment.

Q.2 Is Gravita India Ltd a good quality company?

Gravita India Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Gravita India Ltd undervalued or overvalued?

Gravita India Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Gravita India Ltd a good buy now?

Gravita India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Gravita India Ltd?

Gravita India Ltd revenue growth is 20.3% for FY-2025, which is below its 5-year CAGR of 22.41%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Gravita India Ltd?

Gravita India Ltd Return on capital employed is 21.98% for FY-2025, which is in line with its 5-year historical median of 21.98%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Gravita India Ltd?

Gravita India Ltd Return on Asset is 12.79%, which is in line with its 5-year historical median of 12.36%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Gravita India Ltd?

Gravita India Ltd Return on equity is 18.92% for FY-2025, which is below its 5-year historical median of 20.03%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Gravita India Ltd?

Gravita India Ltd Cash conversion cycle is 54 days, in line with its 5-year historical median of 54 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	2.12	2.74
ROE	18.92	20.03
ROCE	21.98	21.98
Cash Conversion Cycle	54 days	54 days

Q.6 Gross Profit margin of Gravita India Ltd?

Gravita India Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.7% for FY-2025, which is above its 5-year median of 5%, indicating increasing margins.

Q.7 Operating Profit Margin of Gravita India Ltd?

Gravita India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7% for FY-2025, which is above its 5-year median of 5.62% indicating increasing margins.

Q.8 Net Profit Margin of Gravita India Ltd?

Gravita India Ltd Net Profit Margin is 6.02% for FY-2025, is above with its 5-year median of 4.01%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.7	5
Operating Profit Margin	7	5.62
Net Profit Margin	6.02	4.01

Q.9 Debt to Equity ratio of Gravita India Ltd?

Gravita India Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Gravita India Ltd?

Gravita India Ltd Debt to cash flow from operations is 0.05, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Gravita India Ltd?

Promoters hold 55.88% of the Gravita India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Gravita India Ltd vs industry peers?

Gravita India Ltd revenue CAGR is 22.41%, compared to the industry median CAGR of 16.84%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	20.3	16.8
Gross Profit Growth	11.7	24.7
Operating Profit Growth	12	19.2
Net Profit Growth	7.8	15

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.12	2.44
ROE	18.92	5.47
ROCE	21.98	8.46
Cash Conversion Cycle (days)	53.87	56

Valuation & price assessment

Q.1 Stock return of Gravita India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 53.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	53.6%	80.3%	47.7%	-5.2%

Q.3 Valuation ratios of Gravita India Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	42.25	49.60	26.99
Price to Book	7.16	10.54	2.29
Price to Sales	3.71	2.28	0.62
EV to EBITDA	32.43	30.38	12.14

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