The shares of this microcap company have delivered over 30 percent return to its shareholders in just five trading sessions after Mukul Agrawal bought fresh stake and has achieved around 120 percent in returns on a YTD basis.
Price Movement:
With a market capitalization of Rs. 265 crores, the shares of Siyaram Recycling Industries Ltd started Tuesday’s trading session on a higher note at Rs. 142.95 compared to its previous close of Rs. 140.65. During the trading session, the shares hit a high of Rs. 144.45, gaining around 3 percent and are currently trading at Rs. 142 apiece.
What Happened:
On October 5, 2024, the Board of Directors of Siyaram Recycling Industries approved fundraising by up to Rs 35.40 crore through preferential issues of equity shares. The board sanctioned the allotment of 3 million equity shares at an issue price of Rs 118 per share.
This issuance was carried out on a preferential basis, meaning the shares would be allocated to select investors rather than being available to the general public. These shares will be allotted to 26 different allotters, indicating a diverse group of investors participating in this funding round.
According to the allottees list published by the company, Mr MukulAgrawal has been offered 22 lakh shares. His investment in this allocation will amount to approximately Rs. 25.96 crores.
Financials:
Looking at the company’s financial statements, the revenue decreased by around 8 percent from Rs. 215 crores during H1FY24 to Rs. 198 crores in H2FY24. On the other hand, the net profits declined from Rs. 4 crores to Rs. 3 crores during the same period.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 9.80 percent and a return on capital employed (RoCE) of 21.34 percent for the period spanning FY23-24. Further, during the same period, the net profit margin stood at 1.82 percent.
Business Activities:
Siyaram Recycling Industries specializes in both manufacturing and recycling brass products, focusing on sustainable practices.
The company produces a range of brass items, including ingots, billets, rods, and components for plumbing and sanitary applications, which are marketed across 18 Indian states and exported to countries like China, Germany, and Belgium.
In its recycling efforts, Siyaram emphasizes the segregation of brass scrap to create new products, conserving resources and minimizing environmental impact.
By procuring brass scrap internationally and processing it in their Jamnagar facilities, the company aims to contribute positively to environmental sustainability while maintaining a competitive edge in the brass manufacturing sector.
Customer Base:
Siyaram Recycling Industries Ltd boasts a diversified customer base that spans multiple sectors, primarily focusing on the manufacturing of brass components for plumbing and sanitary applications.
Key clients include prominent companies such as Hindware, ROCA, Eauset, Somany, Supreme, AGI Greenpac, and Ashirvad Pipes.
The company also serves metal dealers and traders, enhancing its market reach. In addition to domestic sales, Siyaram exports brass products to international markets, including China, Germany, and Belgium.
Industry Trends:
With increasing governmental focus on recycling through initiatives like the National Resource Efficiency Policy (NREP), Siyaram stands to benefit from a growing emphasis on sustainable practices within the brass industry. This could enhance the demand for recycled brass products.
Written By Vaibhav Patil
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