Siyaram Recycling Industries Limited

Industrials — Metal Fabrication · BSE

₹37.54+₹1.81 (+5.07%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Siyaram Recycling Industries Limited manufactures and recycles nonferrous materials and products in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees40

Annual revenue₹362 Cr

How does it make money?

Turns over ₹362 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 40 employees supports ₹9.04 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin5.0%

Net margin1.0%

Revenue / employee₹9.04 Cr

Who are its competitors?

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

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?Little sign of one

Returns on capital of 10.6% 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.

ROCE10.6%

ROE3.0%

Peer median ROE18.7%

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 +68% while net margin moved -43% 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+68%

Margin effect-43%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.0% is weak
✗ ROE has fallen by 5.0 points over the period

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

42/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

21.6x

2Y Median

14.7x

28 monthly readings · mean 18.6x · range 4.9x–38.8x

Sector Median

12.2x

median of 4 sector peers

⚠️Current valuation is approximately 47% above its 2y median of 14.7x. 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 77% above the peer median of 12.2x.

vs. its own history

Expensive

14.7x median over 28 months · +47%

vs. sector peers

Expensive

12.2x median of 4 peers · +77%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.6x

P/B

0.63x

EV/EBITDA

10.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Debt is rising
Total debt is up 84% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 7.9% to 2.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.8% to 10.6% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 114% against revenue growth of 68% — stock may not be moving.
Valuation above its historical average
At 21.6x the stock trades 47% above its own median of 14.7x.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 84% over 3 years, from ₹62 Cr to ₹114 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.9x to 1.6x.
🟡Inventory building faster than salesFinancial
Inventory up 114% against revenue up 68% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 debt load needs earnings to hold up
Debt is 6.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 47% 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.
Returns on shareholder capital are falling
ROE has dropped from 7.9% to 2.9%. 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.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.

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

1Revenue growth stays above 14% a year✓ 18.9% CAGR
Latest reported year was -43.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹28 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 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

2 good · 5 neutral · 4 weak

Market Cap

₹82 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.6x

Fair

Fairly valued against the generic band

P/B Ratio

0.63x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.74

Profitable

Profitable on a per-share basis

ROE

3.0%

Weak

Weak capital efficiency

ROCE

10.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.88x

Moderate

Moderate leverage

Revenue Growth (YoY)

-43.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-88.2%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹39 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹37.54

ROA

3.5%

Average

Average asset productivity

Operating Margin

4.8%

Weak

Thin margins leave little room for error

Net Margin

1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.06

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.02

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

34.5 / 35.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹215 Cr	₹413 Cr	₹512 Cr	₹362 Cr	+18.9%
EBITDA	₹10 Cr	₹18 Cr	₹30 Cr	₹18 Cr	+23.2%
EBITDA Margin	4.5%	4.4%	5.9%	5.0%	—
PAT (Net Profit)	₹4 Cr	₹8 Cr	₹15 Cr	₹4 Cr	-1.5%
EPS	—	₹4	₹6.69	—	—
ROE	7.9%	9.8%	11.5%	2.9%	—
ROCE	14.8%	20.5%	20.5%	10.6%	—
Total Debt	₹62 Cr	₹59 Cr	₹76 Cr	₹114 Cr	+22.4%
Free Cash Flow	₹10 Cr	-₹5 Cr	-₹46 Cr	-₹28 Cr	—

🟢 Revenue has grown at 18.9% a year over 3 years.

🟢 EBITDA has grown at 23.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.0% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.5% a year).

🔴 ROE has fallen from 7.9% to 2.9% over 3 years (-5.0 pts).

🔴 ROCE has fallen from 14.8% to 10.6% over 3 years (-4.2 pts).

🔴 Total Debt has grown at 22.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹10 Cr to -₹28 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹274 Cr

Total Liabilities

₹144 Cr

Total Debt

₹114 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹28 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

53.6%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

1 positive1 mixed4 general

Siyaram Recycling Industries Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 28 Aug

Siyaram Recycling Wins ₹2.64 Crore Order; Shares Slip 0.61%

HDFC Sky, 10 Aug

Param Value Investments reduces stake in Siyaram Recycling Industries Ltd

scanx.trade, 29 May

Siyaram Recycling Industries Q4 FY26 Results: PAT Rs 2.49 Cr, Revenue Rs 119.5 Crore

Univest, 19 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Mukul Agrawal Portfolio Recycling Stock Gains Rs 43,47,000 In A Single Day As Company Secures Rs 98.41 Lakh Order; Share Price Hits 5% Upper Circuit

Dalal Street Investment Journal, 06 Jul

Siyaram Recycling Bags Export Order; Shares Jump Nearly 5%

HDFC Sky, 11 JunOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Watch Items

Revenue growth is negative (-43.6%) on the latest reported period — check if this is one-off or a trend.
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

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate9.2/20

🔴GrowthWeak8.9/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair8.7/15

🔴RiskHigh4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 14% a year18.9% CAGR
✓EBITDA margin holds above 3%5.0%
✗Debt / EBITDA falls below 3x6.3x
✗Free cash flow remains positive-₹28 Cr
✗Interest cover stays above 3x1.6x