Motilal Oswal Maintains Buy Rating for Jain Resource Recycling with a Target Price of Rs 520

Jain Resource Recycling (JAINREC) Research Report

Company Overview Jain Resource Recycling (JAINREC) is a leading non-ferrous metal recycler in India, operating an integrated platform with a total capacity of 287,000 MT. The company's diversified capabilities span lead (~44% revenue/~45% volume), copper (~50% revenue/21% volume), and aluminum (~4% revenue/4% volume).

Market Trends The demand for domestic secondary lead is expected to grow at a compound annual growth rate (CAGR) of 3.8% over FY18-24, accelerating to 6.5% over FY24-FY30 from 1.18MMT to 1.7MMT. This growth will be driven by rising consumption from the lead-acid battery segment, expanding telecom infrastructure, and increasing adoption of energy storage solutions. Additionally, favorable regulatory policies will support this trend.

Supply Disruptions Ongoing supply disruptions at major global copper mines are projected to increase demand for secondary copper, with domestic secondary demand expected to grow at a CAGR of 14% to 1,410KTPA from 645KTPA. This will create a favorable environment for JAINREC's recycled copper portfolio.

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Valuation We value JAINREC stock at 21x FY28E EPS of INR24, arriving at a target price of INR520.

Rating We initiate coverage on JAINREC with a BUY rating.