Motilal Oswal initiated coverage on Jain Resource Recycling with a ‘Buy’ rating. The brokerage house sees an upside of over 29% at a 12-month target price of Rs 520. The brokerage house, in a research note, mentioned that several strategic factors are in play-  

Dominant position in a growing, regulated industry

Jain Resource Recycling is one of India’s largest non-ferrous metal recyclers, operating an integrated platform with a current capacity of 287K MT. Motilal Oswal believes that the company is poised to benefit from structural shifts toward sustainability and favourable domestic regulations, such as the Battery Waste Management Rules (BWMR) and Extended Producer Responsibility (EPR). These factors are driving the formalisation of the fragmented recycling sector.

Strong financial growth outlook

The analysts at Motilal Oswal expect the company to deliver exceptional financial performance, projecting a CAGR of 36% in revenue, 48% in EBITDA, and 56% in net profit over FY25–FY28. This growth is expected to be fuelled by rising core product capacity and expansion into higher-margin segments.

The company “is scaling its core operations through capacity expansion, product diversification, and deeper customer engagement, while strategically moving into higher value-added products to strengthen its long-term growth trajectory and drive structural margin expansion,” read the report. 

Strategic expansion into high-margin products

Jain Resource Recycling is moving up the value chain by transitioning from basic recycling to producing higher value-added products. Key initiatives include niche antimony extraction from lead scrap and forward integration into copper cathodes, wire rods, and busbars, which are expected to significantly enhance realisation and support margin expansion.

Cost-efficient global sourcing network

The company has built a robust global ecosystem, sourcing scrap directly from more than 120 countries through long-standing supplier relationships. By procuring approximately 71% of its imports directly from overseas scrapyards rather than through intermediaries, the company maintains superior cost efficiency and reliable access to quality raw materials.

These strategic initiatives align with the company’s focus on maximising resource utilisation, enhancing cost efficiencies, and advancing sustainable, environmentally responsible business practices.

Aggressive capacity scalability

To capitalise on rising domestic demand that is outpacing global trends, the company plans to increase its total lead and copper recycling capacity significantly. The company targets expanding its lead recycling capacity from 184K MT to 300K MT and its copper capacity to 100K MT by FY28.

The company’s manufacturing capacity of copper recycling is at 83KTPA as of FY25 (with capacity utilisation at 88% in FY25). Further, the company has plans to increase its capacity to 100KTPA by FY28 to meet the growing demand.

This positions Jain Resource Recycling to meet rising domestic demand while improving scale efficiencies and long-term growth visibility.