GIL India Limited: Company Stock Analysis


Benefiting from regulatory advancements and amendments in Battery Waste Management Rules, GIL India Limited (GIL) is poised to seize the lucrative prospects that lie ahead. Its significant advantage lies in the extensive global and nationwide procurement network, comprising over 1500 touchpoints and 11 recycling plants. Even in the event of key customers establishing their own captive consumption plants, GIL is positioned to maintain a formidable presence within the industry.

Currently holding a value market share of 5%-7% in the INR 120 Bn Indian lead recycling industry, GIL anticipates enhancing its market share to 15%-18% by FY27, leveraging the shift towards the organized sector alongside its well-established sourcing network and available capacity.

Distinguished as a prominent global recycler specializing in non-ferrous secondary metals such as lead, aluminum, and various plastic products, GIL aspires to become one of the top-ranked global recycling companies by FY27, as outlined in its “Vision 2027.” The management targets a revenue and PAT CAGR of 25%+ and 35%+ respectively over FY23-27, accompanied by ROCE exceeding 25% and a non-lead business share of over 25%.

GIL is actively exploring opportunities in new verticals including steel, paper, and lithium-ion. Although the management is currently in the process of assessing these verticals, commercial production is expected to commence in a phased manner and revenue accretion will start post FY26. Additionally, in Q3FY24, GIL established its inaugural recycling plant in Oman and entered into an MoU for a battery recycling plant through a joint venture.

Furthermore, the company’s ambitious capex plans exceeding INR 600 crore aim to drive a robust 20-22% volume CAGR over FY23-27, thereby elevating its capacity from 2.34 lakh MT to 4.25 lakh MT by FY26. This strategic expansion aligns with its vision of achieving non-lead and value-added business shares exceeding 25% and 50% respectively by FY27.