High ROE and High ROCE multibagger stock: This small-cap company is expanding its business!

The cost of the expansion is approx. Rs 31 crore out of which for which Rs 14 crore is already raised.

On Thursday, shares of Gravita India zoomed 2.06 per cent to Rs 515.70 per share from its previous closing of Rs 505.30.   

Gravita India Limited a leading "Recycling Company" having its manufacturing presence around the globe, informed that company is into the expansion in lead recycling, including shifting of existing facility of the company situated in Gandhidham, Gujarat which is 19,500 MTPA.  

The existing capacity of said unit for lead recycling has been increased by 40,500 MTPA and as on date the total capacity of this unit for lead recycling is 60,000 MTPA. Apart from this, company has also started commercial production of red lead and plastic granules with a capacity of 4,800 MTPA and 7,500 MTPA respectively.   

The investment in the said capacity expansion and new capacity installation is approx. Rs 31 crore out of which Rs 14 crore has been funded through external borrowings and remaining by internal accruals of the company.  

Gravita India Ltd is one of the largest lead producers in India. The company's business is organized across four specialized verticals: Lead Recycling (flagship), Aluminum recycling, Plastic recycling and Turnkey projects.  

The company reported excellent numbers in its Quarterly Results and annual results. The stock has an ROE of 42.90 per cent and a ROCE of 31.20 per cent with 1-year CAGR of 70 per cent.   

The stock gave multibagger returns of over 484 per cent in just 3 years where BSE Small-Cap Index is just up by 34.10 per cent.    

Investors should keep an eye on this stock.