Gravita India Shares Price Dips After Q4 Rally: Profit Booking Hits Stock

Market Movement: Gravita India Shares Price Slides After Strong Surge

Gravita India's shares dropped 2.6% in early trading on May 6 to ₹1,886 on the NSE. This pullback follows a 10% rally in the previous session, indicating a round of profit-booking following a robust Q4 performance.

The stock, which had been gaining strong momentum, witnessed selling pressure as investors locked in profits.

Gravita India's Q4 Performance Fuels Momentum

The recycling major Gravita India Ltd reported substantial numbers for the March quarter, sparking high investor interest before the recent correction.

Here's a quick breakdown of its Q4 financials:

Revenue

• ₹1,040 crore in Q4 FY24
• Up 20% YoY, supported by a 13% rise in volumes

EBITDA

• Though the exact EBITDA was not disclosed, margins were implied to be stable per company trends.

Net Profit

• Climbed to ₹95 crore, up 37% YoY
• Compared to ₹69.4 crore in the same quarter last year

Segment-Wise Performance Highlights

• Aluminum segment: Registered 73% YoY growth, showing strong demand
• Lead business: Maintained a steady pace with 19% YoY growth
• Plastic segment: Declined 16% YoY, marking a weak spot in the portfolio

Company Overview: Gravita India at a Glance

Gravita India is a important player in the recycling industry, with a growing presence across multiple verticals, including lead, aluminum, plastic, and rubber. The company's recent growth is primarily attributed to:

• Strategic expansion in domestic and overseas markets
• Focus on value-added products
• Increased availability of domestic scrap
• Diversification into new growth areas like rubber recycling

Summary: Gravita India Shares Price Reflects Healthy Volatility

While the Gravita India shares price dipped after a strong rally, the fall is seen as a typical market reaction to profit-booking rather than a sign of weak fundamentals.

With solid Q4 numbers and growing momentum in its key business segments, Gravita India remains a stock of interest among market watchers. However, investors should monitor its segmental performance and broader market cues in the coming sessions.