Shares of Gravita continued to make gains for the fourth straight session on Tuesday going up over 13% to hit an intraday high of ₹1,045.85.
What Happened: The surge today comes as Kotak Securities initiated coverage on the stock with a “buy” rating. The brokerage has set a target price of ₹1,200 for the Ashish Kacholia-backed stock, reflecting an around 29% upside from the stock’s last closing price of ₹924.85. Kacholia owns a 2.15% stake in the company.
See Also: Reliance Shares Jump As Brokerage Raises Price Target
The domestic brokerage firm said that Gravita stands out as the top player in India’s burgeoning recycling sector, boasting operations both domestically and abroad. As per the analysts, the company’s plans to move beyond lead recycling signals a promising avenue for growth and diversification, enhancing visibility for future expansion.
Kotak forecasts impressive growth for Gravita, anticipating revenue and profit after tax (PAT) to surge at compound annual growth rates (CAGR) of 20% and 22%, respectively, over the next three years.
Gravita benefits from a range of growth drivers across different regions and commodities, mitigating risks and bolstering its resilience against market fluctuations, the analysts added. The analysts also highlighted that despite the company’s strong financial performance, the company’s valuation remains attractive, indicating the potential for rewarding returns to investors.
Price Action: Gravita’s share price was up 10.50% to trade at ₹1,022 in the early hours of trading on Wednesday,
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