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GRAVITA: Rising Discount Rate Will Reward Confidence In Forward Earnings

Circular Economy And EV Adoption Will Drive Recycling Expansion

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GRAVITA
AnalystHighTarget
Not Invested
Published 28 Jul 2025

Update shared on 15 Dec 2025

Fair value Decreased 11%
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AnalystHighTarget's Fair Value
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1Y
-18.0%
7D
2.5%

Analysts have trimmed their price target on Gravita India from ₹3,000.82 to ₹2,658.00, reflecting a higher perceived risk profile despite slightly stronger expectations for revenue growth, profit margins and a lower future P E multiple.

What's in the News

  • Board meeting scheduled for October 30, 2025, to consider and approve unaudited financial results for the quarter and half year ended September 30, 2025 (Key Developments)
  • Special and extraordinary shareholders meeting to be conducted via postal ballot in India on December 26, 2025 (Key Developments)

Valuation Changes

  • The fair value estimate has been reduced from ₹3,000.82 to ₹2,658.00, representing a moderate downward revision in the target valuation.
  • The discount rate has increased slightly from 13.60 percent to 14.68 percent, indicating a higher perceived risk profile in the cash flow assumptions.
  • The revenue growth expectation has edged up from 27.39 percent to 28.08 percent, reflecting a modestly more optimistic top line outlook.
  • The net profit margin forecast has improved from 7.73 percent to 8.51 percent, suggesting slightly better anticipated profitability.
  • The future P/E multiple has been reduced from 61.9x to 46.9x, marking a significant derating of the valuation despite the stronger growth and margin assumptions.

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Disclaimer

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