Siyaram Recycling Shares Surge After Securing $606,000 Brass Billets Order from Dubai-Based Firm
Siyaram Recycling Industries Ltd, a micro-cap stock held by ace investor Mukul Agrawal, is drawing investor attention after winning a significant export order worth $606,000 (₹5.30 crore) from a Dubai-based company. This deal has bolstered market sentiment, highlighting the company’s growing global presence in brass product exports.
Stock Performance and Market Reaction
On Thursday, Siyaram Recycling’s share price experienced a minor dip, reaching an intraday low of ₹132.05, down 1.2% from its previous close of ₹133.70. Despite this short-term movement, the stock has generated remarkable returns of 120% over the past five years, reflecting strong investor confidence.
Key Contract Details
The company has secured an international export contract with M/s. AL QARYAN INTERNATIONAL DMCC, a UAE-based firm, to supply 100 tons of brass billets to China. The order, valued at USD 606,000 (₹5.30 crore), is expected to be fulfilled within the next 45 days.
This achievement not only strengthens Siyaram Recycling’s presence in the international brass market but also paves the way for future global business opportunities. Successful execution of this deal can lead to further contracts, enhancing the company’s revenue streams.
Company Profile and Business Operations
Siyaram Recycling Industries Ltd is engaged in the processing of brass scrap and the manufacturing of brass ingots, billets, and rods, which are widely used in:
- Plumbing fixtures
- Hardware components
- Electrical applications
The company prides itself on its high-quality production standards, timely deliveries, and a strong customer-oriented approach. With globally recognized manufacturing capabilities, Siyaram adheres to strict international standards, ensuring its products meet industry demands.
Financial Performance
Siyaram Recycling has demonstrated strong financial growth in recent quarters.
| Financial Metric | H1 FY25 | H1 FY24 | % Growth |
|---|---|---|---|
| Revenue (₹ Crores) | 246 | 215 | +15% |
| Net Profit (₹ Crores) | 8 | 4 | +100% |
The company’s net profit has doubled year-on-year, reflecting its efficient operations and increasing demand for brass products.
Key Financial Ratios and Market Valuation
Here’s a look at Siyaram Recycling’s key financial ratios compared to the industry average:
| Metric | Siyaram Recycling | Industry Average |
|---|---|---|
| Stock P/E Ratio | 26.2 | 28.4 |
| Price-to-Book (P/B) | 2.94 | N/A |
| Return on Capital Employed (ROCE) | 13.5% | N/A |
| Return on Equity (ROE) | 12.2% | N/A |
| Debt-to-Equity Ratio | 0.84 | N/A |
| Current Ratio | 4.54 | N/A |
Despite a slightly higher P/E ratio than the industry average, Siyaram’s ROCE of 13.5% and ROE of 12.2% indicate efficient use of capital and profitability.
Market Capitalization & Shareholding
- Market Cap: ₹288 Crore
- Current Price: ₹132
- 52-Week High/Low: ₹184 / ₹63
- Promoter Holding: 61.1%
- Retail Investor Holding: 36.65%
- Mukul Agrawal’s Stake: 10.10%
Notably, Mukul Agrawal, a well-known investor, recently purchased a 10.10% stake, indicating his confidence in the company’s future prospects.
Growth Prospects and Industry Outlook
The brass industry has been witnessing steady demand growth, driven by sectors like construction, electrical, and industrial manufacturing. With the increasing need for brass-based products in infrastructure and engineering applications, Siyaram Recycling is well-positioned to capitalize on this trend.
Additionally, the company’s focus on global exports provides an edge over competitors who are limited to domestic markets. This latest Dubai-China deal could be a stepping stone for further international partnerships, boosting long-term revenue.
Conclusion
Siyaram Recycling’s latest export contract is a significant milestone that strengthens its global footprint. With robust financial performance, increasing investor confidence, and strong industry prospects, the company appears poised for sustained growth. Investors looking for a promising small-cap stock with international expansion potential may find Siyaram Recycling an attractive opportunity.
Q&A Section
1. Why is Siyaram Recycling’s stock drawing investor attention?
The company has secured a $606,000 (₹5.30 crore) export order for brass billets from a Dubai-based firm, boosting investor confidence.
2. Who placed the order with Siyaram Recycling, and what is its value?
The order was placed by M/s. AL QARYAN INTERNATIONAL DMCC, UAE, valued at USD 606,000 (₹5.30 crore) for 100 tons of brass billets to be shipped to China.
3. How has Siyaram Recycling performed financially?
In H1 FY25, revenue grew by 15% YoY to ₹246 crores, and net profit doubled to ₹8 crores from ₹4 crores in H1 FY24.
4. What is Mukul Agrawal’s stake in Siyaram Recycling?
Ace investor Mukul Agrawal holds a 10.10% stake in the company, signaling confidence in its growth potential.
5. What are the key financial ratios of the company?
- ROCE: 13.5%
- ROE: 12.2%
- Debt-to-Equity Ratio: 0.84
- Stock P/E: 26.2
6. What are the company’s growth prospects?
Siyaram Recycling is expanding its international reach, with growing demand for brass-based products across industries like construction, electrical, and manufacturing. The latest deal could open further export opportunities.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.