Gravita India Limited
Gravita India Limited Fundamental Analysis
Gravita India Limited (GRAVITA.NS) shows moderate financial fundamentals with a PE ratio of 25.13, profit margin of 9.25%, and ROE of 20.80%. The company generates $41.3B in annual revenue with strong year-over-year growth of 22.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GRAVITA.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGRAVITA.NS demonstrates superior asset utilization.
Valuation Score
WeakGRAVITA.NS trades at a premium to fair value.
Growth Score
ExcellentGRAVITA.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentGRAVITA.NS maintains a strong and stable balance sheet.
Profitability Score
WeakGRAVITA.NS struggles to sustain strong margins.
Key Financial Metrics
Is GRAVITA.NS Expensive or Cheap?
P/E Ratio
GRAVITA.NS trades at 25.13 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GRAVITA.NS's PEG of 6.15 indicates potential overvaluation.
Price to Book
The market values Gravita India Limited at 4.25 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.13 times EBITDA. This signals the market has high growth expectations.
How Well Does GRAVITA.NS Make Money?
Net Profit Margin
For every $100 in sales, Gravita India Limited keeps $9.25 as profit after all expenses.
Operating Margin
Core operations generate 9.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.80 in profit for every $100 of shareholder equity.
ROA
Gravita India Limited generates $13.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gravita India Limited generates limited operating cash flow of $-505.29M, signaling weaker underlying cash strength.
Free Cash Flow
Gravita India Limited generates weak or negative free cash flow of $-1.56B, restricting financial flexibility.
FCF Per Share
Each share generates $-21.41 in free cash annually.
FCF Yield
GRAVITA.NS converts -1.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How GRAVITA.NS Stacks Against Its Sector Peers
| Metric | GRAVITA.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.13 | 25.81 | Neutral |
| ROE | 20.80% | 1255.00% | Weak |
| Net Margin | 9.25% | -46754.00% (disorted) | Weak |
| Debt/Equity | 0.20 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 5.27 | 10.04 | Strong Liquidity |
| ROA | 13.29% | -1492804.00% (disorted) | Strong |
GRAVITA.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gravita India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
189.34%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
835.29%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
727.72%
Industry Style: Cyclical, Value, Infrastructure
High Growth