During Wednesday’s trading session, the shares of a key player in brass recycling and component manufacturing hit a 5 percent upper circuit at Rs. 149.1 on BSE, after the company received an order worth $11,60,000 (~Rs. 10 crores) from Al Qaryan International, Dubai.
With a market cap of Rs. 324.8 crores, the shares of Siyaram Recycling Industries Limited opened in the red at Rs. 137, down by nearly 3.5 percent, compared to its previous closing price of Rs. 142.
What’s the news
Siyaram Recycling Industries Limited has secured a purchase order from Al Qaryan International in Dubai, with a total value amounting to $11,60,000 (or nearly Rs. 10 crores).
According to the latest regulatory filings with the BSE, the order is for the supply of 200 tons of Brass Billets intended for export to China, with a completion timeframe of 45 days.
Previous Orders
On 22nd November, Siyaram Recycling Industries received an order worth Rs. 7.14 crores (or $850000) from Green Metals FZCO, Dubai, for the supply of 150 tons of Brass Billet for export to China.
Management Outlook for FY25
The company is positioned to continue delivering robust financial performance, with targeted revenue growth of more than 30 percent year-over-year.
Siyaram Recycling Industries aims for over 60 percent YoY increase in net profit, reflecting operational efficiency and market demand. The growing global focus on sustainable materials and brass recycling offers significant expansion opportunities for the company.
Financials
Siyaram Recycling Industries experienced a decline in its revenue from operations, showing a year-on-year decrease of around 16 percent from Rs. 492 crores in FY23 to Rs. 413 crores in FY24.
The revenue growth is driven by robust demand across both domestic and international markets. A notable performance was seen in export demand, particularly from China, which continues to contribute significantly to the company’s overall growth trajectory.
In contrast, its net profit increased during the same period from Rs. 7 crores to Rs. 8 crores, indicating a marginal rise of nearly 14.3 percent YoY.
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Key Financial Ratios
In terms of key financial metrics, Siyaram Recycling Industries has a Return on Equity (RoE) of 12.2 percent and a return on capital employed (RoCE) of 13.5 percent. Additionally, the company’s debt-to-equity ratio stands at 0.84.
Shareholding Pattern
As per the November 2024 shareholding pattern, the Promoters hold a 61.13 percent stake in the company, while Retail Investors and Domestic Institutional Investors (DII) hold a 36.62 percent and 2.25 percent stake in Siyaram Recycling Industries, respectively.
Stock Performance
The stock has delivered multibagger returns of nearly 130 percent in one year, as well as around 107.3 percent returns in the last six months. In contrast, the shares of Siyaram Recycling Industrie have given negative returns of about 2 percent in the last one month.
About the company
Incorporated in 2007, Siyaram Recycling Industries Limited is engaged in the business of segregation of brass scrap, manufacturing of brass ingots, billets and brass rods, as well as manufacturing of brass-based components (plumbing and sanitary parts), serving domestic as well as international markets.
The company has a strong geographical presence across 18 states and Union Territories in India, with Gujarat as its primary revenue contributor. Siyaram also has an expanding international market, exporting to China, Germany, Belgium, and Oman.
Written by Shivani Singh
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