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JM Financial initiated coverage on Gravita India with a 'Buy' rating and a target price of Rs 2,010, suggesting a 31% upside. Increased enforcement of the Battery Waste Management Rules and Extended Producer Responsibility is shifting scrap flows to compliant partners like Gravita.

The company plans to expand its recycling capacity from 426 ktpa to over 700 ktpa by FY28, primarily at its Mundra and Phagi facilities. With a strong procurement network and a domestic scrap share increase from 36% to 52%, Gravita is positioned for significant growth. Projections indicate a net profit CAGR of 24% from FY25-28.