Nupur Recyclers Limited

Industrials — Waste Management · NSE

₹168.85+₹3.31 (+2.00%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Nupur Recyclers Limited engages in the import, processing, and trading of ferrous and non-ferrous metals in India. The company imports metal scrap, such as shredded zinc scrap and brass, zinc die cast scrap, Zurik scrap, and aluminium zorba grades.

IndustryWaste Management

SectorIndustrials

Annual revenue₹216 Cr

How does it make money?

Turns over ₹216 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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?Little sign of one

Returns on capital of 13.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

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 +16% while net margin moved +1% 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+16%

Margin effect+1%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 68.1x is demanding — it needs sustained high growth to justify
✗ P/E is 41% above its own historical median of 48.1x — expensive by its own standards
✗ P/B of 8.70x is a steep premium to book

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

37/ 100

Expensive

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

68.1x

3Y Median

48.1x

40 monthly readings · mean 54.6x · range 22.2x–115.5x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 41% above its 3y median of 48.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 23% below the peer median of 88.8x.

vs. its own history

Expensive

48.1x median over 40 months · +41%

vs. sector peers

Cheap

88.8x median of 3 peers · -23%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

43.3x

PEG

13.17

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 10.3% to 12.8% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.7% to 10.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.4% to 13.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 13273% over 3 years, from ₹0 Cr to ₹33 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 172% against revenue up 16% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 10.3% to 12.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 23% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

The price already assumes success
The stock trades 41% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 4.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 16.7% to 10.6%. 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
Micro 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
2 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

1EBITDA margin holds above 11%✓ 12.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.9% CAGR
Latest reported year was 55.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 13.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹1,166 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

68.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

8.70x

Rich

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

EPS (TTM)

₹2.48

Profitable

Profitable on a per-share basis

ROE

10.6%

Moderate

Moderate capital efficiency

ROCE

13.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

55.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

80.8%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

9.2%

Average

Average margins

Net Margin

7.0%

Average

Average bottom-line conversion

Current Ratio

5.28

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

159.2 / 137.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

62.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹187 Cr	₹240 Cr	₹158 Cr	₹216 Cr	+4.9%
EBITDA	₹19 Cr	₹13 Cr	₹25 Cr	₹28 Cr	+12.6%
EBITDA Margin	10.3%	5.5%	16.0%	12.8%	—
PAT (Net Profit)	₹12 Cr	₹7 Cr	₹14 Cr	₹14 Cr	+5.2%
EPS	₹1.78	₹1.05	₹2.11	₹2.06	+5.0%
ROE	16.7%	8.4%	12.3%	10.6%	—
ROCE	23.4%	12.8%	17.6%	13.7%	—
Total Debt	₹0 Cr	₹13 Cr	₹13 Cr	₹33 Cr	+411.4%
Free Cash Flow	-₹17 Cr	-₹12 Cr	-₹23 Cr	₹1 Cr	—

🟢 Revenue has grown at 4.9% a year over 3 years.

🟢 EBITDA has grown at 12.6% a year over 3 years.

🟢 EBITDA Margin has risen from 10.3% to 12.8% over 3 years (+2.4 pts).

🟢 PAT (Net Profit) has grown at 5.2% a year over 3 years.

🟢 EPS has grown at 5.0% a year over 3 years.

🔴 ROE has fallen from 16.7% to 10.6% over 3 years (-6.1 pts).

🔴 ROCE has fallen from 23.4% to 13.7% over 3 years (-9.6 pts).

🔴 Total Debt has grown at 411.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹17 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹198 Cr

Total Liabilities

₹51 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹18 Cr

Capex

-₹17 Cr

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive1 mixed4 general

Nupur Recyclers Upper Circuit Today: Price, Data and Peers

Univest, 15 Oct

Nupur Recyclers Insiders May Regret Not Buying More, Market Cap Hits ₹8.0b

Simply Wall Street, 07 Aug

Nupur Recyclers director acquires 50,400 shares worth ₹41.86 lakh

scanx.trade, 26 Jun

Nupur Recyclers consolidated net profit rises 34.47% in the March 2026 quarter

Business Standard, 22 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

4 Recycling Stocks Down up to 58% from 52-Week Highs

Equitymaster, 02 Jan

Nupur Recyclers Share Price Target 2027: Base and Bull Case

Univest, 09 OctAnalyst view

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

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Profitability · Risk

WeakGrowth · Valuation

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. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑