Jain Resource Recycling
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Jain Resource Recycling (JAINREC) is strategically transitioning from a traditional recycling model to a value-added manufacturing platform, focusing on higher-margin copper products. Management's commentary highlights a robust growth trajectory, with a projected 33% revenue CAGR over FY26-28, driven by increased demand for recycled metals and regulatory mandates for recycled content. This shift is expected to enhance margins and reduce earnings cyclicality, aligning with Vista's forecast of stable profit margins and accelerating revenue growth. However, the company faces execution risks related to capacity expansion and supply chain disruptions, particularly from geopolitical tensions. The non-ferrous metals industry is experiencing a structural tailwind, with improving pricing power and a projected CAGR of 14.46%, further supporting JAINREC's outlook. Over the next 12-24 months, key opportunities include the successful commissioning of new facilities and expanding into telecom infrastructure, while watchpoints include commodity price volatility and the complexities of global scrap procurement. Overall, Vista's strong buy recommendation reflects confidence in JAINREC's ability to capitalize on these trends, with an expected upside of 61.57%
Why We Like This Stock
- Transitioning to higher-margin copper products is expected to enhance profitability and reduce earnings cyclicality
- Strong demand for recycled metals and favorable regulatory changes are projected to drive revenue growth
- Management's focus on disciplined capital allocation and operational efficiency supports long-term financial stability
Things To Watch Out For
- Execution risks related to capacity expansion and supply chain disruptions could impact short-term performance
- Commodity price volatility remains a concern, potentially affecting margins and profitability
- Increased working capital requirements may strain financial resources during the transition phase
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 4,428 | 7,126 | 9,543 | 13,605 | 18,070 |
| Profit Before Tax (Cr.) | 203 | 302 | 471 | 636 | 851 |
| PBT Margin | 4.6% | 4.2% | 4.9% | 4.7% | 4.7% |
| Net Profit (Cr.) | 154 | 233 | 307 | 416 | 554 |
| Earnings Per Share | 4.5 | 6.8 | 8.9 | 12.0 | 16.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 350 | 08-Sep-2026 |
| Motilal Oswal | ▲ Buy | 460 | 04-Aug-2026 |
Company Overview
Show Company Profile
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. It also engages in the non-ferrous metals and other commodities; processing of precious metals, such as gold and silver; and manufactures zinc products. In addition, the company offers copper products that include refined copper billet, copper alloy billets/ingots, and finished copper scrap; lead products that include refined lead ingots, antimony lead ingots, and remelted lead ingots; aluminum products that include aluminum alloy ingots and molten aluminum alloys; tin and plastic recycling products; solder tin alloy and ingots; and aluminum scrap. It serves lead-acid batteries, electrical and electronics, pigments, automotive, and other industries. Jain Resource Recycling Limited was founded in 1950 and is based in Chennai, India.