Gravita India: Breakout with Volume on Daily & Weekly

Gravita India Ltd. is a Jaipur-based global leader in the recycling of lead and other non-ferrous metals. Established in 1992, the company operates across 10 countries with a focus on environmentally friendly and economically sustainable metal recycling practices. Its product portfolio includes refined lead, aluminium, plastic granules, and value-added products.

Gravita has a significant presence in international markets, with exports contributing a major share of its revenue. Its plants are certified for quality, environmental, and occupational health and safety standards, giving it a competitive edge in sustainable manufacturing.

The company has received accolades for being among the top exporters in its category and continues to strengthen its backward integration and logistics capabilities. It also benefits from increased government emphasis on circular economy and sustainable industrial practices.

Technical Analysis

The latest chart for Gravita India (as of July 26, 2025) reveals a strong breakout both on the daily and weekly timeframes, supported by volume, momentum, and price structure alignment.

1. Daily Chart Analysis: Fresh Breakout With Momentum

a) Price Action

• Breakout Level: ₹1,870 has been decisively breached with today’s close at ₹1,886.60.

• Daily High: ₹1,897.60, indicating strong intraday momentum.

• The stock has broken above multiple moving averages:

  • 50-Day SMA: ₹1,748.88 (support zone now)

  • 200-Day SMA: ₹1,786.21

• Immediate resistances from previous highs lie at ₹1,912.

b) Volume Confirmation

• Volume on breakout day: 3.01 million, a significant increase compared to the prior sessions, confirming strong buying interest.

c) Relative Strength Index (RSI)

• RSI (14): 65.45, indicating bullish momentum but not yet in overbought territory.

• RSI has crossed above its moving average (43.71), confirming a shift in strength.

d) Key Supports

• Post-breakout support lies at:

  • ₹1,850.15

  • ₹1,821.43 (mid-zone)

  • ₹1,786.21 (200-SMA level)

• A fallback to these zones with holding strength could be a buying opportunity.

2. Weekly Chart Analysis: Structure Turning Positive

The left side of the image shows the weekly chart, which provides confirmation from a broader time horizon.

a) Structure Analysis

• Breakout from multi-week consolidation: The price broke out above ₹1,757 – ₹1,825 zone that acted as a strong ceiling for 10+ weeks.

• Price is now testing resistance around ₹1,931.45 and moving towards the next key zone near ₹2,031.90.

b) Moving Averages

• The 10- and 20-week SMAs are beginning to curl upwards – early signals of trend reversal.

• Price is above all key weekly moving averages including the 50-SMA, suggesting a shift from neutral to bullish territory.

c) Volume

• Weekly volume is strong, indicating institutional participation and adding conviction to the breakout.

d) RSI (14)

• Current RSI: 51.17, having recently broken above the RSI-based moving average of 48.21.

• Momentum is gradually shifting from a neutral/bearish to a bullish zone.

• A weekly bullish divergence is visible between April and July, suggesting accumulation during the base.

3. Confluence Zone: Where Daily and Weekly Agree

The most powerful signals in technical analysis come from multi-timeframe alignment. Gravita India is now showing:

• A daily breakout with follow-through volume

• Weekly confirmation from range breakout

• Rising RSI trends on both timeframes

• Price moving above major SMAs on both charts

This confluence boosts the probability of sustained upward movement.

4. Target Projections

Using simple Fibonacci and previous price action zones:

Traders can aim for ₹1,931 and ₹2,031 as short- to medium-term targets, with appropriate trailing stop losses.

5. Risk Management

Despite the bullish setup, traders must remain vigilant. Key risk control points include:

• Immediate Support: ₹1,821

• Invalidation Level: A close below ₹1,786.21 (200-DMA) would negate the short-term breakout structure.

Technical Conclusion: The confluence of daily and weekly breakout, supported by high volume and rising RSI on both charts, signals a strong bullish setup. A move toward ₹1,931 and ₹2,031 is probable if the momentum continues.

Fundamental Analysis

Revenue and Profitability

• FY25 Revenue: ₹2,453 crore (12% YoY growth)
• FY25 Net Profit: ₹211 crore (9% YoY growth)
• EBITDA Margin: 12.4%
• ROE: 21.6%, ROCE: 19.8%

Gravita’s consistent revenue growth is backed by expanding recycling capacity and export market penetration. The company’s margins are stable, supported by operating leverage and better realization in its lead recycling vertical.

Expansion Plans

• Added new aluminium and lead recycling facilities in Africa and Sri Lanka
• Expanding backward integration in raw material procurement
• Increased automation and digital integration across plants

Debt and Liquidity

• Debt-to-equity: 0.48 – moderate leverage
• Strong cash flow from operations
• Working capital efficiency has improved through inventory and receivables management

Industry Outlook

• Growing demand for recycled metals globally due to ESG and sustainability norms
• Government policy support for circular economy and waste recycling
• Gravita is well-placed as a niche player with robust export capabilities and first-mover advantage in several geographies

Valuation and Investor Sentiment

• P/E Ratio: ~18x – attractive compared to industry peers
• Positive analyst coverage with buy ratings from leading brokerages
• High promoter holding (around 72%) indicating confidence

Fundamental Conclusion: Gravita India is fundamentally strong with growth visibility, healthy financial ratios, and increasing global demand for sustainable recycling. It has strong earnings potential to back up the recent technical breakout.

Final Outlook

Gravita India is currently presenting a rare alignment of technical and fundamental bullishness. The breakout above key resistances on high volume, supported by strong financial performance and favorable industry tailwinds, suggests further upside potential.

ALSO READ: TSC India IPO: Strategic Entry for B2B Travel Investors