GRAVITA INDIA LIMITED Shareholding Update: An Examination of Financial Performance for FY (Q4-Mar 2023-2024)

Upon examining the financial data for BSE code 533282, it becomes clear that the company achieved a notable five-year profit of 57 percents, which impressively increased to 74 percents in the three-year window. This upward trajectory, however, has been overshadowed by the latest trailing twelve-month (TTM) figures, which indicate a concerning loss of 22 percents. This financial loss is further compounded by the fact that the company has not recorded any sales across any of the timeframes under consideration. Such an unusual situation might suggest that the company operates under an unconventional business model, which could potentially carry higher risks. In terms of stock performance, the company’s stock price has seen a decline, falling from 117 percents over the five-year period to just 103 percents in the last year. The ten-year average stock price, which sits at 39 percents, highlights long-term volatility, casting doubt on the company's ability to sustain its market position over time. This warrants further investigation into the factors driving these fluctuations.

The company currently holds a market cap of ₹17,358 crore, with its stock trading at ₹2,514. Historically, the stock has fluctuated between ₹2,700 / 730, reflecting its performance in response to market dynamics and various economic factors. The company's Price-to-Earnings (P/E) ratio stands at 68.2, indicating that the stock is perceived as highly valued by the market, possibly driven by expectations of future earnings growth. The book value per share is ₹121, which offers insight into the company's intrinsic worth, while its dividend yield of 0.21% provides a steady return for long-term investors. Return on Capital Employed (ROCE) is 27.9%, showcasing the company’s ability to generate profits from its capital investments. Return on Equity (ROE) is 33.7%, highlighting how efficiently the company uses shareholder funds to generate profits. The debt-to-equity ratio is very low at 0.65, which is a positive indicator of financial stability. However, the company’s net cash flow of ₹5.44 crore raises concerns about its liquidity position. The Piotroski score of 5.00 reflects the company’s overall financial health, while the Graham Number of ₹317 suggests the stock's intrinsic value. Despite these factors, the Price-to-Book (P/B) ratio of 20.7 indicates that the stock is trading at a premium to its book value, which might imply market optimism about the company's future growth prospects.