Gravita India vs Pondy Oxides: Which Stock Has the Highest Growth Potential?
Introduction
Gravita India vs Pondy Oxides : India’s recycling industry is on a fast track, with the market projected to grow from $0.89 billion in 2025 to $1.34 billion by 2030, at a CAGR of 8.53%. The recent 2025 Budget has further fueled this sector’s growth by removing customs duties on waste and scrap of twelve critical minerals, including lithium-ion battery waste.
Among the key players in this sector, Gravita India and Pondy Oxides & Chemicals (POCL) have emerged as strong contenders. But which stock offers better growth potential? Let’s analyze them based on financial performance, strategic initiatives, and future growth plans.
Stock Price Performance
Gravita India
- Market Cap: ₹12,497.6 Cr
- Current Price: ₹1,690
- 52-Week High/Low: ₹2,700 / ₹730
- 1-Year Return: +94%
- 1-Month Return: -15%
Gravita India has delivered impressive 94% returns over the past year but has seen a 15% decline in the last month.
Pondy Oxides & Chemicals (POCL)
- Market Cap: ₹1,626 Cr
- Current Price: ₹606.85
- 52-Week High/Low: ₹830 / ₹385
- 1-Year Return: +62%
- 1-Month Return: -23%
POCL has also provided strong returns of 62% in a year but has seen a sharper 23% correction in the last month.
Future Growth Prospects
Gravita India’s Vision 2028
Gravita aims to:
✔️ Achieve a volume CAGR of 25%+ and profitability growth of 35%+
✔️ Increase the non-lead business to 30%+
✔️ Use 30%+ renewable energy while cutting overall energy consumption by 10%
POCL’s Strategic Growth Plan
POCL is focusing on:
✔️ Expanding lead capacity and entering lithium-ion battery recycling
✔️ Achieving 15%+ volume growth and 20%+ revenue CAGR
✔️ Improving EBITDA margins to 8%+ and ROCE to 20%+
Financial Performance Comparison
| Metrics | Gravita India | Pondy Oxides & Chemicals |
|---|---|---|
| Revenue (Q3 FY25) | ₹996 Cr (+31.4% YoY) | ₹509 Cr (+11.4% YoY) |
| Net Profit (Q3 FY25) | ₹78 Cr (+28% YoY) | ₹13 Cr (+30% YoY) |
| Revenue CAGR (FY21-24) | 30% (₹3,161 Cr) | 15% (₹1,524 Cr) |
| Net Profit CAGR (FY21-24) | 62% (₹242 Cr) | 54% (₹40 Cr) |
Gravita India has significantly outperformed POCL in revenue and profit growth over the past three years.
Margin Guidance & Profitability
Gravita India
- Lead EBITDA per ton: ₹18-19K
- Aluminium EBITDA per ton: ₹14-15K (post-hedging)
POCL
- Lead EBITDA per ton: Declined 24% YoY
- Near-term EBITDA margin target: 6%
- Long-term margin target (by FY30): 8%+
Gravita India maintains better profitability margins, while POCL is working on margin recovery.
Strategic Initiatives & Expansions
Gravita India’s Expansion Plans
📌 West Africa Operations: New aluminium alloy plant with 4,000 MTPA capacity, expanding to 8,000 MTPA
📌 European Expansion: Increased stake in Navam Lanka to 100%
📌 Lithium-Ion Battery Recycling Pilot: To commence in H1 FY26
📌 Mundra Plant Expansion: To produce 72,000 MTPA of lead, expanding to 1 lakh MTPA
📌 ₹1,000 Cr QIP Fundraising: For capacity expansion & diversification
POCL’s Expansion Plans
📌 Lead Capacity Expansion: 72,000 MTPA in two phases (first phase operational by March 2025)
📌 R&D Focus: Developing value-added products
📌 Lithium-Ion Battery Recycling Feasibility Study: Implementation by FY27
Both companies are expanding aggressively, but Gravita’s diversification into lithium-ion battery recycling and rubber recycling gives it a stronger edge.
Key Financial Ratios
| Metric | Gravita India | Pondy Oxides & Chemicals |
|---|---|---|
| Stock P/E | 43.6 | 19.8 |
| Book Value | ₹126 | ₹257 |
| Dividend Yield | 0.31% | 0.54% |
| ROCE | 27.9% | 22.5% |
| ROE | 33.7% | 24.8% |
| Debt to Equity | 0.60 | 0.40 |
| Intrinsic Value | ₹566 | ₹384 |
| RSI | 43.3 | 47.1 |
Gravita has higher ROE and ROCE, making it more efficient in generating profits. However, POCL has a lower P/E ratio, indicating it may be undervalued.
Final Verdict: Which Stock Has the Highest Growth Potential?
✅ Gravita India emerges as the stronger stock due to:
✔️ Higher revenue & profit growth rates
✔️ Better profitability margins
✔️ Aggressive expansion into new recycling verticals (Lithium-ion, rubber, PET recycling)
✔️ Stronger strategic initiatives & global market reach
While POCL remains a strong growth stock, Gravita India currently holds the edge in both short-term and long-term growth potential.
Which Stock Should You Buy?
🔹 If you seek high growth & diversification → Gravita India
🔹 If you prefer steady growth & undervaluation → POCL
As India’s recycling industry booms, both stocks remain attractive long-term investments, but Gravita India appears to be the winner in terms of overall growth potential.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.