Jain Resource Recycling Limited

Basic Materials — Other Industrial Metals & Mining · NSE

₹290.20−₹2.60 (−0.89%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Jain Resource Recycling Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jain Resource Recycling Limited engages in the recycling scraps of non-ferrous metals, and non-metallic materials in India and internationally. The company offers lead and lead alloy ingots, copper and copper alloys and ingots, and aluminum and aluminum alloys.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees1,793

Annual revenue₹9,412 Cr

How does it make money?

Turns over ₹9,412 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 1,793 employees supports ₹5.25 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.25 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 35.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.6% against a peer median of 12.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE12.0%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 17.2% and earnings to grow about 27.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.2%

Est. earnings growth+27.1%

Analysts4

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +208% while net margin moved +25% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+208%

Margin effect+25%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

57/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

27.5x

1.2Y Median

60.1x

14 monthly readings · mean 52.3x · range 26.6x–71.4x

Sector Median

12.3x

median of 3 sector peers

🟢Current valuation is approximately 54% below its 1.2y median of 60.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 123% above the peer median of 12.3x.

vs. its own history

Cheap

60.1x median over 14 months · -54%

vs. sector peers

Expensive

12.3x median of 3 peers · +123%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.2x

PEG

0.49

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 35.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 46.1% to 22.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 41.4% to 35.5% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 73% over 3 years, from ₹739 Cr to ₹1,276 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 281% against revenue up 208% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹694 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 35.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 54% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 123% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 46.1% to 22.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 34% a year✓ 45.4% CAGR
Latest reported year was 75.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹694 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 32%✓ 35.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹10,014 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.5x

Fair

Fairly valued against the generic band

P/B Ratio

6.56x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹10.57

Profitable

Profitable on a per-share basis

ROE

22.6%

Strong

Strong capital efficiency

ROCE

35.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

75.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹694 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

18.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.9%

Weak

Thin margins leave little room for error

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

1.80

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

287.9 / 289.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,060 Cr	₹4,414 Cr	₹6,369 Cr	₹9,412 Cr	+45.4%
EBITDA	₹167 Cr	₹271 Cr	₹399 Cr	₹584 Cr	+51.7%
EBITDA Margin	5.5%	6.1%	6.3%	6.2%	—
PAT (Net Profit)	₹92 Cr	₹164 Cr	₹222 Cr	₹352 Cr	+56.5%
EPS	—	—	₹6.43	₹10.39	—
ROE	46.1%	44.4%	30.5%	22.6%	—
ROCE	41.4%	53.0%	50.5%	35.5%	—
Total Debt	₹739 Cr	₹914 Cr	₹928 Cr	₹1,276 Cr	+20.0%
Free Cash Flow	-₹11 Cr	₹4 Cr	-₹35 Cr	-₹694 Cr	—

🟢 Revenue has grown at 45.4% a year over 3 years.

🟢 EBITDA has grown at 51.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 6.2% over 3 years.

🟢 PAT (Net Profit) has grown at 56.5% a year over 3 years.

🔴 ROE has fallen from 46.1% to 22.6% over 3 years (-23.6 pts).

🔴 ROCE has fallen from 41.4% to 35.5% over 3 years (-5.9 pts).

🔴 Total Debt has grown at 20.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,382 Cr

Total Liabilities

₹1,824 Cr

Cash & Equivalents

₹70 Cr

Operating Cash Flow

-₹591 Cr

Capex

-₹103 Cr

Shareholding (proxy)

Institutional Holding

6.4%

Insider Holding

80.6%

Analyst Consensus

Recommendations

3 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹375.25

+29.3% vs CMP

Target Range

₹350 – ₹395

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

1 mixed1 negative4 general

Jain Resource Recycling subsidiary fully operationalizes copper anode production in Tamil Nadu

scanx.trade, 14 Oct

JAIN RESOURCE RECYCLING LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

Jain Resource Recycling IPO day 1: Live subscription status, price band, lot size, key dates and more

Upstox, 12 Oct

JAINREC Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Revenue Miss: Jain Resource Recycling Limited Fell 9.3% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Simply Wall Street, 07 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Jain Resource Recycling Bull Case vs Bear Case for 2026

Univest, 11 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑