Gravita India vs Pondy Oxides; Which stock has the highest growth rate?

The overall recycling market in India is expected to reach $0.89 billion in 2025, growing at a CAGR of 8.53 percent to reach $1.34 billion by 2030. 

In the 2025 budget, the Indian government removed customs duties on waste and scrap of twelve critical minerals, including lithium-ion battery waste. This policy aims to ensure the availability of essential materials for domestic manufacturing, supporting the growth of the recycling sector.

Here’s a comparison between Gravita India and Pondy Oxides & Chemicals:

Price Movement

Gravita India Limited, with a market capitalization of Rs. 12,497.6 crores, reached an intraday high at Rs. 1,768.75 on BSE, up by around 4 percent on Friday. The stock has delivered positive returns of nearly 94 percent over a one-year period, while around 15 percent of negative returns in the last one month.

Pondy Oxides & Chemicals Limited, with a market capitalization of Rs. 1,626 crores, hit an intraday high at Rs. 606.85, up by around 3.5 percent on BSE. The stock has delivered positive returns of nearly 62 percent over a one-year period, while around 23 percent of negative returns in the last one month.

Future Outlook

The management of Gravita India remains optimistic about its growth prospects, aiming for a volume CAGR of over 25 percent and profitability growth of more than 35 percent under its Vision 2028 plan. 

The company is also focusing on increasing the share of non-lead business to over 30 percent, while utilizing more than 30 percent renewable energy and reducing overall energy consumption by 10 percent. 

In contrast, POCL is focused on expanding its lead capacity and exploring new verticals such as lithium-ion battery recycling. The company targets over 15 percent volume growth, a revenue CAGR of more than 20 percent, and profitability growth, with a strong emphasis on sustainable practices.

POCL aims to achieve an EBITDA margin exceeding 8 percent and a ROCE above 20 percent. Additionally, the company is targeting 60 percent of its revenue to come from value-added products and aims to reduce energy consumption by 20 percent by 2030.

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Financial Performance

Gravita India reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 31.4 percent, rising from Rs. 758 crores in Q3 FY24 to Rs. 996 crores in Q3 FY25, while its net profit increased around 28 percent YoY from Rs. 61 crores to Rs. 78 crores. 

Additionally, the revenue of Gravita increased by a CAGR of over 30 percent to Rs. 3,161 crores in FY24, as against Rs. 1,410 crores in FY21, while the net profit grew by a CAGR of 62 percent, from Rs. 57 crores to Rs. 242 crores, over the same period. 

Pondy Oxides reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 11.4 percent, rising from Rs. 457 crores in Q3 FY24 to Rs. 509 crores in Q3 FY25, while its net profit increased around 30 percent YoY from Rs. 10 crores to Rs. 13 crores. 

Further, the revenue of Pondy Oxides increased by a CAGR of 15 percent to Rs. 1,524 crores in FY24, as against Rs. 1,004 crores in FY21, while the net profit grew by a CAGR of nearly 54 percent, from Rs. 11 crores to Rs. 40 crores, over the same period.

Margin Guidance

For Gravita India, the expected EBITDA per ton for lead is projected to stabilize in the range of Rs. 18 to Rs. 19, with aluminium margins anticipated to be between Rs. 14 to Rs. 15 once hedging mechanisms are fully implemented. 

For POCL, the EBITDA per ton of lead has decreased by 24 percent YoY, with management citing the rise in domestic raw material prices as a key factor affecting margins. The company expects to improve its EBITDA margin to around 6 percent in the near term, with a long-term goal of surpassing 8 percent by FY30

Strategic Initiatives

Recyclers Ghana Limited, a step-down subsidiary of Gravita in West Africa, has commenced commercial production of recycled aluminium alloys with an annual capacity of 4,000 metric tons, with plans to expand this capacity to 8,000 metric tons. Gravita Netherlands BV, the company’s material subsidiary, has increased its stake in Navam Lanka Limited from 52 percent to 100 percent. 

Gravita India raised Rs. 1,000 crores through QIP, which will be strategically utilized to support the company’s growth initiatives. This includes capacity expansion, and diversification into new verticals, with Rs. 245 crores allocated for debt repayment and working capital. 

The pilot projects for lithium-ion battery recycling and Gravita’s first-ever rubber recycling plant in Mundra are on track, with operational commencement expected in H1 FY26.  The Mundra facility is expected to produce ~72,000 tons of lead, with plans to expand production to 1 lakh metric tons. 

For POCL, the company is expanding its lead capacity by 72,000 metric tons per annum in two phases. Phase 1, which includes 36,000 metric tons, is expected to begin trial production in March 2025. 

The total estimated capex for Phase 1 is Rs. 70 crores, funded through QIP and internal accruals, while Phase 2 expansion, with an estimated capex of Rs. 20 crores, is expected to be commissioned by H2 FY26. 

POCL also plans to set up R&D facilities for value-added products and is conducting feasibility studies for lithium-ion battery recycling, with potential implementation in FY27. 

About the Company

Gravita India Limited is engaged in lead processing, aluminium processing, trade (lead products and aluminium scrap) and dealing in turn-key lead recycling projects. 

The company carries out smelting of lead battery scrap/lead concentrate to produce secondary lead metal, which is further transformed into pure lead, specific lead alloy, lead oxides (lead sub-oxide, red lead, and litharge) and lead products like lead sheets, lead powder, lead shot etc. 

Further, the company has also entered into PET product manufacturing. On the other hand, POCL is one of the largest recyclers of non-ferrous metals and a leading manufacturer of Lead and Lead alloys

The company is engaged in the business of converting scraps of various forms of lead, aluminium and copper into lead metal, aluminium metal, copper and its alloys. Lead battery scrap is smelted by POCL to produce secondary lead metal is then processed into pure lead and specific lead alloys.

Written by Shivani Singh

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