Investors looking for opportunities in the metals sector may find a compelling case for Gravita India Limited. After a period of relative underperformance that left some shareholders uneasy, global brokerage firm CLSA has stepped in with a bullish outlook, initiating coverage on the company with an outperform rating. The analysts believe the stock is currently undervalued and could see its price climb by as much as 35 percent.
The optimism surrounding the metal producer stems largely from its strategic pivot toward copper expansion and an aggressive push within the broader metal recycling market. According to insights shared via CNBC-TV18, these specific growth levers are expected to act as primary catalysts for future earnings. By diversifying its capabilities and scaling up its recycling operations, Gravita is positioning itself to capture more value in a circular economy where sustainable sourcing is becoming critical.
However, the road to recovery isn’t without potential hurdles. While the long term trajectory looks promising, experts warn that tight scrap availability remains a significant operational risk. If the supply of raw materials dries up or becomes too expensive, it could squeeze margins and slow down the projected growth pace. Despite these concerns, the consensus among analysts suggests that the current entry point offers an attractive window for those betting on a turnaround.
