Markets are swinging sharply as global tension continue to keep investors on edge, and almost every sector is now under the spotlight. In times like these, the big question on Dalal Street is – where is the next opportunity?

Amid the ongoing Middle East conflict, investors now might be looking for stocks that can still deliver strong upside despite the uncertainty.

In its latest report, brokerage firm Nuvama has highlighted one such mid-cap stock from the mining space that has caught its attention.

The stock in focus is Gravita India. According to the brokerage, the stock could offer an upside potential of around 62% from its current levels, with a target price of Rs 2,301.

So, what is driving this optimism, and what should investors know before tracking this stock? Let’s take a look –

Nuvama on Gravita India: Expansion push and entry into copper business

One of the biggest factor to watch out of this metals and mining stock, according to the brokerage report, is the company’s aggressive expansion along with its entry into a new segment.

Gravita India has increased its lead recycling capacity and has also stepped into copper recycling, which adds a new growth avenue.

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As per Nuvama report, “Q4FY26 could be a weak quarter driven by volume loss in the Middle East and higher sea freight,” it noted. This is an important move because it reduces dependence on a single segment and strengthens the overall business model.

The report also pointed out that further expansion is already in the pipeline. “Another 45ktpa lead expansion is due in Q1FY27,” it noted.

According to the brokerage report, this expansion and diversification together improve visibility. “These also help in diversification and provides volume growth visibility (32% CAGR over FY26-28E versus 12% CAGR over FY22–26E),” it added.

Nuvama on Gravita India: Strong volume growth to drive earnings

Another major factor behind the optimism is the expected jump in volumes and earnings over the next two years. The brokerage believes that once new capacities are fully operational, production will rise sharply.

Nuvama in its report noted that, “Gravita is poised for 45% YoY volume growth in FY27 and a further 20% YoY growth to 361kt in FY28E.”

This increase in volumes is expected to translate into better earnings. According to the brokerage report, “This along with firm profitability (blended EBITDA/t of Rs 21,500 in FY27E/FY28E versus Rs 21,244 in FY26E) shall drive EBITDA and PAT CAGR of 33% and 24% over FY26-28E” .

The report also highlighted that the copper business will start contributing meaningfully. The brokerage expects this division to contribute around Rs 80–90 crore, or about 12% of consolidated EBITDA, in FY27 and FY28.

Nuvama on Gravita India: Near-term pressure, but recovery expected from FY27

The brokerage has flagged some short-term challenges that could impact performance.

Nuvama in its report noted, the March quarter may remain weak due to external factors. “Q4FY26 could be a weak quarter driven by volume loss in the Middle East and higher sea freight,” it noted

However, the brokerage believes this weakness is temporary. Growth to resume from FY27 as new capacities come on stream and operations stabilise.

At the same time, the brokerage has adjusted its valuation assumptions to account for risks. Furthermore, the brokerage house has lowered the target multiple to factor in geopolitical uncertainty.

However, the brokerage house still maintains its positive stance on the stock.

At of the current market price, the Gravita India stock trades at around 18.5 times its FY28 estimated earnings per share.

Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.