Overseas expansion buzz lifts Gravita India stock

Gravita India, a small-cap company, outperformed the market on talk that the lead metal producer will set up plants in Australia and Mexico for manufacture of remelted lead ingots.

Driving the price on Monday was another buzz that the company plans a joint venture in South Africa for setting up lead recycling plant, announcement of which is expected soon. When contacted, a senior company official confirmed expansion plans, but refused to divulge further details.

The Gravita India stock rose 2.8% to Rs 363 against a 0.7% fall in the Sensex on Monday. It, in fact, gained 10% despite a bearish market in last one week. Dealers tracking the stock said the company is looking to establish its presence in the market through overseas expansion projects.

The company, whose products are used in different industries like battery, glass, ceramic, pharmaceutical, paint and electronic, posted a net profit of Rs 2.6 crore on sales of Rs 54 crore in quarter ended December 31, 2010.