Latest news with #Gravita
Telegraph
11-05-2025
- Business
- Telegraph
Could a wealth tax ever work in Britain?
With rising concerns about inequality and the ballooning cost of public services, the idea of introducing a UK wealth tax is back in the spotlight. Targeting the richest members of society, a wealth tax is applied to the total value of an individual's assets, such as property, investments and savings. While the UK doesn't currently have a 'wealth tax' specifically, people do already pay tax on these assets – through capital gains tax, dividend tax and savings tax. However, some argue that a separate levy could help fund vital services by requiring the very richest to contribute more. Here, Telegraph Money explains what a wealth tax is, how it works in other countries and what it might look like in the UK. What is wealth tax? Countries with a wealth tax How could wealth tax work in the UK? Benefits of wealth taxes Issues with wealth taxes What is wealth tax? A wealth tax is a tax levied on the total value of an individual's assets, rather than their income, according to Michaela Lamb, tax partner at chartered accountants, Gravita. She said: 'It typically applies to net wealth, including property, investments and other valuables above a certain threshold, less debt. It's usually done on an annual basis, where you have to declare the net value of your assets at the end of the year.' This type of tax is often proposed to reduce economic inequality by redistributing wealth from the richest individuals, helping to address the widening gap between the wealthy and the rest of society. Countries with wealth tax Were the UK to introduce a wealth tax, it would join a relatively long list of countries that already have this levy in place. These include: Spain – Spain's wealth tax is a progressive tax ranging from 0.2pc to 3.5pc on assets above €700,000 (£592,000), with rates varying depending on region. It also has a 'solidarity tax' ranging from 1.7pc to 3.5pc on wealth over €3m. Norway – Norway's wealth tax is charged at a rate of 1pc on wealth stocks exceeding NOK 1.7m or 1.1pc on net wealth exceeding NOK 20m. Switzerland – This is charged at the cantonal level and covers worldwide assets. Rates vary by canton. France – France abolished its net wealth tax in 2018 and introduced a real estate wealth tax. This applies to real estate assets valued at €1.3m or above and the tax ranges to 1.5pc. Italy – Italy levies two taxes on foreign assets held by Italian residents – one on real estate and one on foreign financial assets, such as stocks and bonds. Belgium – The solidarity wealth tax rate is 0.15pc on securities accounts that reach or exceed €1m. Argentina – Argentina's wealth tax rate ranges from 0.5pc to 1.1pc for 2025. Colombia – Colombia's wealth tax rate ranges from 0.5pc to 1.5pc for individuals whose net worth equals or exceeds 72,000 Tax Value Units (UVT).
Mint
06-05-2025
- Business
- Mint
Brokerages stay bullish on this smallcap multibagger stock after Q4 beat, see 37% upside. Time to buy?
Multibagger smallcap stock in focus: Domestic brokerage firms have retained their optimistic view on Gravita India, one of the country's largest lead producers, following its March quarter performance, which exceeded their estimates. The strong results reinforced their belief that the company remains on track to achieve its 'Vision 2029' targets, supported by capacity expansion initiatives across both domestic and international markets. They also believe future growth will be driven by the company's planned entry into new geographies within India, continued focus on increasing the share of value-added products, and rising contributions from non-lead business segments. Following the company's strong Q4FY25 performance, domestic brokerage firm Axis Securities maintained its 'Buy' call on the stock but trimmed its target price to ₹ 2,600 apiece from the earlier target of ₹ 3,000, citing heightened geopolitical risks and macro uncertainties. However, the revised target still indicates a 37% upside from the stock's latest closing price. Similarly, Motilal Oswal retained its 'Buy' rating on the stock with a target price of ₹ 2,300 apiece, while Kotak Institutional Equities maintained its 'Add' rating, trimming the target price to ₹ 2,175 from ₹ 2,400, citing lower lead volumes. As a leading player in India's rapidly expanding recycling industry, Motilal Oswal said Gravita is well-positioned to deliver strong earnings growth over the medium term, supported by strategic capacity expansions across verticals and geographies, increased focus on value-added products, higher growth in new segments (like rubber), and improved domestic scrap availability driven by favorable regulatory tailwinds. Kotak noted that the company has multiple levers for volume expansion, including the implementation of an aluminum hedging contract on MCX, use of QIP proceeds for potential M&A, expansion of lead recycling capacity at Mundra by 40% to 0.1 mtpa, setting up domestic rubber and pilot Li-ion battery recycling projects, and scaling up operations in international markets such as Eastern Europe and the Americas. Axis Securities highlighted that the recent fundraise through QIP will enable Gravita to pursue both organic and inorganic growth opportunities in the evolving recycling sector. Expansion in both existing and new recycling verticals is expected to drive revenue growth, while profit growth is likely to outpace revenue growth, supported by an improving product mix and stronger operating leverage. The company reported a strong 13% YoY increase in overall volumes, driven by a 62% YoY surge in aluminum and a 12% YoY rise in lead. Value-added products contributed 46% of revenues during the quarter. Additionally, stricter BWMR and EPR regulations led to a 60% increase in domestically sourced scrap, which rose to 43%. Q4FY25 revenue came in at ₹ 1,037 crore, up 20% YoY and 4% QoQ, broadly in line with analysts' estimates of ₹ 1,042 crore. Adjusted EBITDA also met expectations at ₹ 108 crore, marking a growth of 17% YoY and 6% QoQ. EBITDA margin stood at 10.5%, slightly above the estimated 10.2%, improving by 20 basis points QoQ but declining by 29 basis points YoY. Consolidated profit after tax stood at ₹ 95 crore, registering a robust growth of 37% YoY and 21% QoQ, surpassing expectations by 4%. The shares, valued at ₹ 506 each just two years ago, have witnessed an astonishing surge of 276%, now trading at ₹ 1,906. Furthermore, from their low of ₹ 32 in May 2020, the shares have experienced an extraordinary rise of 5,856% to date. Established in 1992 in Jaipur, Gravita India specializes in the recycling of lead, aluminum, plastics, and rubber, serving both domestic and international markets. With a widespread global presence, the company boasts a strong clientele of over 375 customers across Asia, the Middle East, Europe, and the Americas, spanning 38 countries. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions. First Published: 6 May 2025, 01:27 PM IST
Business Upturn
05-05-2025
- Business
- Business Upturn
Why are Gravita share price up nearly 9% today? Explained
By Aditya Bhagchandani Published on May 5, 2025, 09:29 IST Shares of Gravita India surged 8.63% to ₹1,967.90 on Monday morning after the company reported a strong set of earnings for the quarter ended March 31, 2025. The stock gained ₹156.40 from its previous close of ₹1,811.50, with investor sentiment boosted by solid growth across all key metrics. Gravita India posted a consolidated profit after tax (PAT) of ₹95 crore in Q4FY25, marking a 37% year-on-year (YoY) increase from ₹69.4 crore in the same quarter last year. The company's revenue from operations also rose 20.1% to ₹1,037 crore, led by robust demand across its lead, aluminum, and plastic recycling segments. Earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at ₹92 crore, up 27.4% YoY, with EBITDA margin improving to 8.9% from 8.4%, driven by higher volumes and a rising share of value-added products. The company also announced that it has raised ₹1,000 crore via Qualified Institutional Placement (QIP) to support its expansion and debt repayment plans. Additionally, the board declared an interim dividend of ₹6.35 per share for FY25-26, with a record date set for May 8, 2025. CEO Yogesh Malhotra said Gravita achieved record revenue, EBITDA, and PAT in FY25, and is well-positioned to realize its Vision 2029 roadmap focusing on scale, diversification, and sustainability. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
