At a Glance:
Jamnagar-based Siyaram Recycling has quietly smelted its way into ₹500+ Cr annual revenue from brass plumbing and sanitary components. But don’t confuse it with the textile-wale Siyaram. This one’s a brass baller, growing profits 94% YoY, but still refuses to share the loot (0% dividend). Fair value? Read on.

🧱 1. Business Model – Desi Metallica

• Converts brass scrap → billets/rods → sanitary components
• Deep in the Jamnagar brass cluster, with value-chain control
• Sells inserts, valves, nipples, and even spindles (yup, that too)
• Margin expansion visible (OPM: 2% → 5% over 5 years)

🛁 TL;DR: They make the sexy parts inside your bathroom fittings, not the ones you show off on Instagram.

📈 2. Financials – Growth Without Gimmicks

• 3-Year Sales CAGR: ~7%
• 3-Year PAT CAGR: 🔥 65%
• FY25 EPS: ₹6.69 (vs ₹4.00 in FY24)

🧠 Smart improvement in profitability despite flat-ish revenues in FY23–24.

🧾 3. Balance Sheet – Brass-Powered Growth

• Equity: ₹22 Cr | Reserves: ₹105 Cr (up 3x in 3 years)
• Debt: ₹76 Cr → not overleveraged, but working capital intensive
• Inventory Days: 161 🧂 (rising = concern)
• Debtor Days: 36 (manageable)

🧮 Cash flows are weak — negative from operations for 3 years straight due to WC absorption. Needs a brass flush!

📊 4. Valuation – Not Cheap, Not Crazy

• CMP: ₹125
• EPS (TTM): ₹6.69
• P/E: 18.7x
• Book Value: ₹58.2 → P/BV: 2.15x
• No dividend, despite 94% PAT growth (🤷‍♂️ why tho?)

📦 Fair Value Range:

🎯 FV Range: ₹120–₹240
(current CMP ₹125 sits at the lower end, so downside is low, upside optional)

🧍‍♂️ 5. Shareholding – Promoters Book Profits

• Promoter holding fell from 70.8% to 61.1% in FY25
• Public increased stake from 18.7% to 37% 📈
• Retail entries post preferential allotment used for business expansion (₹35.3 Cr utilized as disclosed)

🕵️ Promoter stake drop is worth watching — listing + capex cycle? Or profit booking?

📉 6. Red Flags

• Cash from Ops: Negative ₹43 Cr in FY25 😬
• Working Capital Days: 135
• No dividend = no sharing = 🙅‍♀️
• High inventory days suggest possible overproduction or slow movement

🛠️ 7. Verdict – Not Just Scrap Metal

Siyaram Recycling is no longer a metal scrap yard operator. It’s now a sanitary component midcap-in-the-making. But WC pain and low liquidity (SME listing) may keep big boys away for now. Also, market cap ₹272 Cr is still microcap — tread carefully, or slip on brass shavings.

📦 Tags:

Siyaram Recycling, Brass Industry, Jamnagar Stocks, SME Stocks India, Brass Components, EduInvesting, Fair Value Analysis, Stock Deep Dive

✍️ Written by Prashant | 📅 June 26, 2025