Stock Analysis: Buying Opportiunity in Gravita India Ltd.?.

Introduction:
Gravita India Ltd is one of the largest lead producer in India. The company's business is organized across four specialized verticals: Lead Recycling (flagship), Aluminum recycling, Plastic recycling and Turnkey projects.
The company also has expertise in the recycling of used batteries, cable scrap/other Lead scrap, Aluminum scrap, Plastic scrap, etc.

Fundamentals:
Market Cap: ₹ 12,200 Cr.;
Stock P/E: 36.0 (Ind. P/E: 16.55) 👎;
ROCE: 21.5% 👍; ROE: 21.2% 👍;
3 Years Sales Growth: 20% 👍
3 Years Compounded Profit Growth: 30% 👍
3 Years Stock Price CAGR: 74% 👍

Technicals:
Gravita trading below all key EMAs like 20 EMA(Black Line), 50 EMA (Orange Line), 100 EMAs (Blue Line) and 200 EMA (Pink line).
The stock exhibits a strong Bearish Momentum - Below Short, Medium and Long Term Moving Averages.
The stock has Superior Financial Strength, High Growth Trend Stock Priced at High Valuations.
Resistance levels: 1705, 1765, 1808
Support levels: 1640, 1588
Note: As per technical analysis, downside risk is minimum, and upside potential is huge.
Research Recommendations: Axis Securities sees 40% upside potential 🔥
Key Factors that could guide the growth story:

• Capacity Rampup on track - Current capacity to see an addition of 1L MTPA by year end and 7L MTPA by FY28.
  
• Volume growth in Lead and Aluminium - Strong performance in Q1 was majorly due to 96% YoY jump in volumes of aluminium and 10% YoY increase in lead.
  
• Growth to kick from H2FY26 - Company is targeting 25% volume CAGR and 35% profitability CAGR in long term. The majority of volume growth (15-16%) would be from existing capacity while 8-10% from new capacity addition.