Harsh Vijay

#GRAVITA - Gravita India India's multi-material recycling platform and category leader in organized lead recycling with 8-10% domestic market share. With 60% of the sector still unorganized, the move toward the formal economy is a massive, long-term growth driver. Highest EBITDA margins in the sector at 11.4%, with 4 major catalysts ahead: 1. EPR Regulations: Mandate for organized recycling across batteries, plastic, aluminium, and tyres kicks in April 1, 2026. Gravita is already an approved EPR credit generator in all four categories where every tonne pushed from the informal to the formal sector is incremental, high-margin revenue that the market has yet to fully price in. 2. New Verticals & Copper Pivot: Non-lead businesses are scaling fast. The Li-ion recycling plant (6,000 MTPA) at Mundra is now operational. Crucially, the March 2026 acquisition of Rashtriya Metal Industries (RMIL had a turnover of ₹910 Cr in FY25) for ₹559 Cr marks a massive entry into copper recycling. Non-lead is targeted at 30% of revenue by FY29 (vs 12% today), driving significant mix-shift margin expansion. 3. Global Scale-up: International expansion is the long-duration play, increased Gravita Europe stake at 95%, Dominican Republic greenfield slated for FY27, and the RMIL deal adding 31,200 MTPA of high-barrier capacity. 4. The Procurement Moat: They've built a global network with 33 owned scrap yards and 1,900+ collection points across 5 continents. Owning the source - proximity to scrap in Africa and Asia - reduces logistics costs, secures supply consistency, and removes the middleman entirely. Competitors relying on spot market procurement get squeezed when scrap prices spike. Gravita doesn't. This vertical integration into raw material sourcing is a physical moat that domestic-only competitors simply can't replicate. Vision 2029 targets 25%+ volume CAGR and 35%+ profitability growth with ROIC above 25%. Key risks in the thesis are lead/copper price volatility impacting per-tonne realizations, Q3 FY26 revenue growth of 2% YoY showing near-term top-line pressure that needs to close toward the 25% volume CAGR target, RMIL integration complexity given simultaneous multi-vertical expansion, and promoter stake declining 17% over three years to 55.8%, three senior exits in March 2026 including an Executive Director and Independent Director, and death of a key promoter-trustee holding 23.5% through family trust(succession clarity awaited).

@_amitbehere What you are saying is true but please also tell who is a better leader in india right now