Gravita zooms over 10 per cent on increasing capacity of its existing recycling unit

After witnessing a sharp fall of nearly 19 per cent from the highs, the stock has witnessed a V-shaped recovery and surpassed its previous all-time highs.   

The stock is trading up by 12 per cent while the total volumes traded is nearing 16 lakh shares, which is one of the highest in almost the last ten trading sessions.   

So, let’s know why the stock is seeing a huge spurt in price along with a massive jump in volumes? As you know, it is a leading recycling company, having a manufacturing presence around the globe. Recently, the company informed that it has increased the capacity of its existing recycling unit situated at Chittoor (Andhra Pradesh). The existing capacity of the said unit of lead recycling has been increased by 10,200 MTPA and as of date, the total capacity of this unit for lead recycling is 38,200 MTPA. The production from the said plant will cater to the needs of domestic as well as international customers. 

Investment in the said expansion is approx. Rs 1 crore, which is invested from internal accruals of the company. The company is expecting revenue of approx. Rs 150.00 crore in a year from this additional capacity.  

What’s more heartening to see is that the company has witnessed a multi-year breakout, that too, on the back of a huge spurt in volume!