Motilal Oswal Sees 30% Upside in Jain Resource Recycling Stock Price.

Jain Resource Recycling Poised for Long-Term Expansion

Motilal Oswal Financial Services, a leading brokerage firm, has initiated coverage on Jain Resource Recycling with a BUY rating and a target price of ₹520, anticipating an upside of up to 30%. This decision is based on the company's strategy to enhance capacity, produce value-added products, and fortify customer relationships, leading to sustained improvement in margins.

Key Highlights

• Jain Resource Recycling, one of the largest recyclers of non-ferrous metals in India, boasts a total capacity of 287,000 metric tons.
• The company's revenue is driven by a range of capabilities across lead (approximately 44% of revenue and 45% of volume), copper (about 50% of revenue and 21% of volume), and aluminum (roughly 4% of revenue and 4% of volume).
• Lead recycling has been a driving force behind the company's growth, achieving a revenue compound annual growth rate (CAGR) of around 38% between FY22 and FY25.

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Growth Projections

• Motilal Oswal Financial Services expects Jain Resource Recycling to deliver a CAGR of 36%/48%/56% in revenue/EBITDA/PAT over FY25-28.
• The company's EBITDA/MT is estimated at ₹21,067 in FY28, led by higher-value by-products.

Share Price

• Jain Resource Recycling share price today opened at ₹414.80 apiece on the BSE, touching an intraday high of ₹415.70 per share and an intraday low of ₹408.30 per share.

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