Gravita India Ltd.
ISIN: INE024L01027 • Market Cap: ₹13,234 Cr
The 5-Pillar Quality Audit for Gravita India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (9.4%), Return on Capital Employed (18.1%), and equity compounding (15.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.14 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (18.8%) and 3Y PAT CAGR (24.9%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 33.77 vs PEG of 1.68 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 55.9%, backed by 18.4% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.14)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 18.8%)
Revenue has expanded at 18.8% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 24.9%)
Net earnings have compounded at 24.9% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Metals & Mining)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Metals & Mining space.
Quantitative Strategy Eligibility
Checking GRAVITA against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 74/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Metals & Mining Sector Peer Comparison
Compare GRAVITA directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Gravita India Ltd. (GRAVITA)Current | 74/100 | ₹13,234 Cr | 33.77 | 18.1% | 0.14 | — |
| Adani Enterprises Ltd. (ADANIENT) | 58/100 | ₹4.03 Lakh Cr | 54.17 | 5.1% | 1.07 | View |
| JSW Steel Ltd. (JSWSTEEL) | 73/100 | ₹3.13 Lakh Cr | 12.64 | 10.7% | 0.96 | View |
| Hindustan Zinc Ltd. (HINDZINC) | 88/100 | ₹2.34 Lakh Cr | 13.72 | 62.3% | 0.37 | View |
| Hindalco Industries Ltd. (HINDALCO) | 71/100 | ₹2.33 Lakh Cr | 14.19 | 12.7% | 0.71 | View |
| Tata Steel Ltd. (TATASTEEL) | 62/100 | ₹2.30 Lakh Cr | 20.82 | 11.9% | 0.84 | View |
Frequently Asked Questions: Gravita India Ltd.
Q:What is the 5-Pillar Fundamental Score for Gravita India Ltd. (GRAVITA)?
Gravita India Ltd. has a RupeeTools Fundamental Score of 74/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (64/100), Financial Health (80/100), Growth (86/100), Valuation (62/100), and Ownership Quality (78/100).
Q:Is GRAVITA fundamentally strong for long-term investment?
Yes, GRAVITA exhibits solid fundamental strength with a 74/100 score, driven by a return on equity of 15.1% and a debt-to-equity ratio of 0.14.
Q:Does GRAVITA pass the Coffee Can Investing filter?
Yes! GRAVITA satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does GRAVITA compare against other Metals & Mining peers?
Within India's Metals & Mining sector, GRAVITA trades at a P/E of 33.77 and generates an ROCE of 18.1%. Compare its 5-Pillar score of 74/100 against top sector peers like Adani Enterprises Ltd. (58/100), JSW Steel Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.