Gravita India Bullish: Motilal Oswal Forecasts 37% Upside Potential

Motilal Oswal has maintained a "Buy" rating on Gravita India with a target price of Rs 2,300 per share, implying a 37% potential upside. The brokerage firm believes Gravita is entering a new growth phase driven by expansion into non-lead businesses like rubber and lithium battery recycling. Domestic scrap sourcing has increased, reducing working capital days and boosting cash flow from operations. Gravita is preparing to enter the rubber and lithium-ion recycling segments, with a revenue CAGR of ~70% expected over the next 3-4 years. Lead recycling still contributes 88% of revenues, but the company is working on adding value to its product mix with tailored products commanding higher margins. EPR and BWMR rules favor organized recyclers like Gravita, gaining market share due to better access to legal scrap.