Domestic brokerage firm Motilal Oswal Financial Services has initiated coverage on Jain Resource Recycling Ltd with a “Buy” recommendation, projecting nearly 30% upside potential in the company’s share price. The brokerage has set a target price of ₹520 per share, citing strong growth prospects driven by rising demand for recycled metals, capacity expansion, and favourable regulatory trends in India’s recycling industry. With increasing focus on sustainability and resource efficiency, analysts believe the company is well positioned to benefit from long-term structural tailwinds in the metals recycling sector.
Author : Aashiya Jain | EQmint | Market News
A Positive Outlook from Motilal Oswal
Motilal Oswal Financial Services has expressed a bullish view on Jain Resource Recycling, highlighting its strong growth prospects in the recycling industry. The brokerage has initiated coverage on the stock with a “Buy” rating and a target price of ₹520, implying an upside potential of roughly 30% from current levels.
According to the brokerage, the company is likely to benefit from rising demand for recycled metals, especially in India where industries are increasingly focusing on sustainable and cost-efficient raw materials. Additionally, favourable regulations supporting organised recycling companies could create a supportive environment for firms like Jain Resource Recycling.
The brokerage also expects the company’s revenue, EBITDA, and profit after tax to grow significantly over the next few years as it expands capacity and strengthens its product portfolio.
About Jain Resource Recycling Ltd
Jain Resource Recycling Ltd is among India’s largest recyclers of non-ferrous metals, operating a fully integrated platform that processes various materials at a single location.
The company specialises in recycling metals such as lead, copper, and aluminium, which are widely used across industries including automotive batteries, electrical equipment, and manufacturing.
Its business is diversified across three key segments:
- Lead and lead alloys, contributing roughly 44% of revenue and around 45% of production volume
- Copper products, accounting for about 50% of revenue
- Aluminium recycling, contributing a smaller share but supporting diversification
With a total processing capacity of around 287,000 metric tonnes, the company has built a large recycling platform capable of handling multiple metal streams efficiently.
This diversified structure helps the company manage commodity price fluctuations while capturing opportunities in different industrial segments.
Growth Drivers Behind the Bullish View
Motilal Oswal sees several big structural drivers that could push Jain Resource Recycling’s growth in the years ahead.
First up there’s the rising demand for recycled metals. Globally industries are turning more and more to recycled metals to cut costs and lower carbon emissions. India’s manufacturing sector is growing fast and that’s expected to boost demand for secondary metals even more.
Then there’s the company’s capacity expansion plans. They’re looking to increase production capacity and move further into value-added metal products. That should help improve profitability and margins And don’t forget the increasing demand for lead and copper.
India’s consumption of these metals is expected to grow faster than global averages. Especially because of rising demand from batteries electrical infrastructure and renewable energy sectors.
All these factors together create a pretty favourable environment for companies operating in the recycling ecosystem.
Strong Earnings Growth Expected
Motilal Oswal estimates robust financial growth for Jain Resource Recycling over the next few years. The brokerage expects the company to deliver a compound annual growth rate (CAGR) of about 36% in revenue, 48% in EBITDA, and 56% in profit after tax between FY25 and FY28.
Improving operational efficiency and expansion into higher-value products are expected to drive these gains.
Additionally, analysts note that the company is investing in new product lines and expanding its global sourcing network to secure metal scrap supply, which is critical for recycling businesses.
Recent Stock Performance
Jain Resource Recycling shares have been actively traded in the market, with the stock recently opening around ₹414.80 on the BSE, touching an intraday high of ₹415.70 and a low of ₹408.30 during the trading session.
The company currently has a market capitalisation of over ₹14,000 crore, reflecting growing investor interest in the recycling sector.
What Investors Should Keep in Mind
While brokerage firms remain optimistic about the company’s growth prospects investors should always consider several factors before making investment decisions. These include commodity price fluctuations global demand for metals and broader stock market trends.
Still the long-term outlook for the recycling industry remains promising as governments and industries focus more on sustainability and efficient resource utilisation. With favourable regulatory support expanding capacity and rising demand for recycled metals.
Jain Resource Recycling appears well positioned to benefit from the evolving industrial landscape. If the company successfully executes its growth plans analysts believe the stock could deliver meaningful returns over the coming years.
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Disclaimer: This article is not an investment advice and is for educational purpose only
