During Tuesday’s trading session, the shares of a key player in brass recycling and component manufacturing are in focus, after the company announced receiving an order worth $11,70,000 (~Rs. 10.2 crores) from Greenland Trading Private Limited, Hong Kong.
Price Action
With a market cap of Rs. 311 crores, the shares of Siyaram Recycling Industries Limited opened in the red at Rs. 142.7, down by nearly 2 percent, compared to its previous closing price of Rs. 145.6.
What’s the news
Siyaram Recycling Industries Limited has secured a purchase order from Greenland Trading Private Limited, Hong Kong, with a total value amounting to $1,170,000 (or nearly Rs. 10.2 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
22nd November 2024: Siyaram Recycling Industries received an order, valued at $8,50,000 (or nearly Rs. 7.14 crores), from Green Metals FZCO, Dubai, for the supply of 150 tons of Brass Billet for export to China.
25th November 2024: Shree Extrusions Limited, Jamnagar, awarded the company an order worth Rs. 3.4 crores for the supply of 60 tons of Brass Scrap.
1st January 2025: The company secured an order worth $11,60,000 (or nearly Rs. 10 crores) from Al Qaryan International, Dubai, for the supply of 200 tons of Brass Billets intended 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.
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Financials
Siyaram Recycling Industries experienced a growth in its revenue from operations, showing a year-on-year increase of around 14.4 percent from Rs. 215 crores in H1 FY24 to Rs. 246 crores in H1 FY25.
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.
Similarly, its net profit increased during the same period from Rs. 4 crores to Rs. 8 crores, indicating an impressive growth of nearly 100 percent YoY.
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.
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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