This SME stock zooms 16% on heavy volume; up 300% vs issue price in 11 mths

Siyaram Recycling Industries share price hit a new high of Rs 183.85, surging 16% on the BSE in Tuesday's intraday trade, amid heavy volumes.

Siyaram Recycling Industries share price hit a new high of Rs 183.85 as the stock surged 16 per cent on the BSE in Tuesday's intra-day trade backd by heavy volumes, on healthy revenue and net profit guidance. The stock of this SME group company surpassed its previous high of Rs 174.90 touched on October 18, 2024. The average trading volumes at the counter jumped three-fold, with 306,000 shares changing hands on the BSE.

 

In the past two months, the market price of Siyaram Recycling Industries has soared 60 per cent. In the last six months, it rallied 128 per cent, as compared to 6 per cent rise in the BSE Sensex. With Tuesday's strong gain, the market price of the company has zoomed 300 per cent against the issue price of Rs 46 per share. The company made its stock market debut on December 21, 2023.

 

 

As on September 30, 2024, investor Mukul Agrawal held 2.2 million equity shares or 10.1 per cent stake in Siyaram Recycling Industries, the shareholding pattern data shows. 

 

The company is engaged in the business of segregation of brass scrap, manufacturing of brass ingots, billets and brass rods and manufacturing of brass based components (plumbing and sanitary parts) such as brass inserts, brass ceramic cartridges (brass spindles), brass valves, extension nipples etc. as per the customer’s requirements. The company caters to domestic as well as International markets.

 

In the first half (April to September) of the financial year 2024-25 (H1FY25), the company’s net profit jumped 81 per cent year-over-year (YoY) at Rs 7.68 crore. Revenue grew 14.23 per cent YoY at Rs 245.66 crore.

 

For FY25, Siyaram Recycling Industries have a targeted revenue growth of more than 30 per cent YoY. The company is aiming for over 60 per cent YoY increase in net profit, reflecting operational efficiency and market demand.  The growing global focus on sustainable materials and brass recycling offers significant opportunities for expansion, the company said.

 

The brass recycling industry in India offers a highly favorable outlook, with growth projections fueled by rising industrial demand, government support, and increasing focus on environmental sustainability. With targeted investments in technology, infrastructure, and efforts to formalize the recycling sector, the industry is expected to flourish, catering to both domestic needs and export markets.

 

The expansion of the automotive and electrical industries is a big opportunity for the company. Both sectors rely heavily on brass for components like connectors, terminals, and electrical fittings. With the growing demand for electric vehicles and renewable energy infrastructure, the need for brass and its recycling is expected to increase.

 

Urbanisation in emerging economies is driving demand for construction materials, including brass, creating opportunities for recyclers to supply sustainable alternatives to virgin materials, the company said.

 

As the industry continues to adopt cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), and automation, there will be further opportunities for enhanced operational efficiency, reducing waste, and increasing yield in recycling processes.

 

The government incentives, subsidies, and policies that support recycling industries, particularly in Europe and North America, are creating favorable environments for brass recyclers to thrive. This is also evident in emerging markets, where governments are increasingly promoting waste reduction and recycling, Siyaram Recycling Industries said in its FY24 annual report.