It appears Auditor has qualified their annual report for
revenue recognition - it is unclear about exact cause but I guess auditors are not blunt while giving qualifications
Company has not accounted for 20cr employee benefit expense via P&L
isnt this a red flag for company that has not generated lot of FCF?
Fundamentally, major profitability lies in Africa business - how to gain confidence that same would sustain over medium term reason for Africa business being this profitable could be lower compliance cost and informal sourcing.. any color on this? they have 55% market share in Ghana
Any thoughts on the results? Is anyone planning to attend the conference call?
They are counting big on rubber recycling, The estimates for Capacity in the Q4 presentation for FY28 are 7.27 lakh MT as against 5.05 on Q3 presentation. The capex plan has also increased to 1500 Cr from 600 Cr.
Will management be able to deliver on such high expectations, given that they have missed the initial goal of 2025 expected capex. Also does anyone see any impact of trade wars?
Summary form Q4 results PPT and transcript. Please feel free to suggest views/edits.
Is that an expensive choice at current PE of 45 Vs 3-year median PE of 27.4?
Future Guidance Gravita has outlined an ambitious VISION 2029 roadmap with specific targets. Key guidance points include:
Volume CAGR:** Targeting 25%+. Management expects volumes growth for FY26 to also be around 25%, potentially ranging from 20% to 30% depending on the pace of capex execution.
Profitability Growth:** Targeting 35%+. The company has historically surpassed this, with a 5-year PAT CAGR of 57%.
Upcoming Capex Total Capex Plan:** Rs. 1500+ Crore planned by FY 2028.
Revenue, Profits, and Financial Performance
Revenue: INR 3,869 crores, up 22% YoY.
Adjusted EBITDA: INR 404 crores, up 22% YoY. EBITDA margin stood strong at 10.43%.
PAT: INR 312 crores, up 31% YoY. PAT margin increased to 8%.
Food Safety and Standards Authority of India (FSSAI) notifies Recycled-PET Material Norms for Beverage Industry. New FSSAI rules as per Environ Min Rules mandating 30% recycled plastic in PET packaging by FY26
agree..but as I said, Gravita is a matured recycler which has nailed down most of its raw material and plants. POCL is an up and coming story where they are still sorting these things out.
I am expecting POCL to reach the heights of Gravitas eventually.
i think gravita is well diversified but pocl is working in highly niche segment. So, pocl also needs to diversify if they really want to achieve new heights. my 2 cents.
From what I see Gravitas PET & plastic recycling segment is 2-3% of its business as of now. They aim to increase this by FY 28. In the medium term I don’t think we will see much change
