Baheti Recycling Industries Ltd is that one scrap dealer in the family wedding who quietly sits in the corner, weighs everything carefully, and then walks out with more gold than the groom. As of the latest close, the stock trades around ₹629, carrying a market capitalisation of roughly ₹653 crore, after delivering about 13% return in the last three months and a spicy 55% return over one year. Not bad for a company whose raw material literally comes from other people’s junk.
Latest half-year numbers show revenue of ₹315 crore and PAT of about ₹9 crore, with profit growth running much faster than sales growth. ROE is sitting at a very flattering ~36%, ROCE around ~22%, and operating margins hovering near 7–8%, which in recycling terms is like squeezing juice from aluminium peels. The flip side? Debt is heavy at ₹203 crore, debt-to-equity is close to 3, and the balance sheet looks like it has been hitting the gym with borrowed dumbbells.
Still, with capacity expansions, solar power savings, and marquee clients like Tata Steel, JSW, and Motherson, Baheti Recycling has moved from “who?” to “hmm interesting” territory. Whether this is disciplined growth or leveraged bravado is exactly what we’re here to roast, decode, and audit.
2. Introduction
Baheti Recycling Industries Ltd was incorporated back in 1994, which means it has survived multiple commodity cycles, policy U-turns, and probably several income tax raids in the scrap industry (purely a joke, relax). The company operates in the non-ferrous metals space, primarily aluminium recycling, converting scrap into usable aluminium alloys, de-oxidants, ingots, shots, cubes, and notch bars.
Recycling is one of those businesses that sounds boring until you realise it sits right at the intersection of sustainability, industrial demand, and cost arbitrage. Aluminium recycling, in particular, consumes far less energy than primary aluminium production. That makes recyclers structurally relevant as energy costs rise and ESG buzzwords start appearing in every investor presentation.
Baheti has quietly built a sizeable operation with a plant in Dahegam, Gujarat, spread over 5 acres, of which half is still idle and waiting for its “expansion arc.” With over 300 employees, multiple furnaces, and a growing client list across automotive, power, engineering, and metals, the company has transitioned from a small recycler to an SME-listed growth story.
But here’s the catch: growth has been funded aggressively with debt. Borrowings have ballooned from ₹102 crore in Mar 2024 to ₹203 crore by Sep 2025. Profits are rising fast, but cash flows from operations remain stubbornly negative. So the real question is – is Baheti recycling aluminium, or recycling loans?
3. Business Model – WTF Do They Even Do?
Let’s break it down like we’re explaining this to a smart but lazy investor who thinks aluminium recycling is just melting Coke cans.
Baheti Recycling buys aluminium-based scrap from various sources. This scrap is processed using furnaces to remove impurities and then alloyed into specific compositions depending on client requirements. The output products include aluminium alloy ingots, aluminium de-oxidants, cubes, shots, and notch bars. These are not fancy consumer products; they are industrial inputs used by steel plants, auto component manufacturers, electrical equipment makers, and foundries.
Apart from manufacturing, Baheti also runs a trading business, dealing in aluminium, brass, copper, and zinc scrap. Trading typically has lower margins but helps keep volumes flowing and furnaces busy. Think of it as the company’s “side hustle” to ensure raw material continuity and customer stickiness.
Installed production capacity stands at about 29,160 MT, with actual utilisation around 64%. Aluminium alloy ingots account for roughly 11,576 MT, aluminium de-ox for about 7,034 MT, taking total production to 18,160 MT. Capacity expansion is underway via new Tilting Rotary Furnaces (TRFs), expected to push capacity to ~34,000 MTPA. Management is targeting 80–90% utilisation over the next two years. Ambitious? Yes. Impossible? No.
Clients include heavyweights like Tata Steel, JSW Steel, L&T, UNO Minda, Honda Trading, and Motherson. However, the top 10 customers contribute around 75% of revenue, which means concentration risk is very real. If one big client sneezes, Baheti might need a loan to buy tissues.
The latest result header clearly states Half Yearly Results, so EPS annualisation is done by multiplying the latest EPS by 2, not 4. Lock applied. No funny business later.
Witty commentary time: Revenue is climbing nicely, profit is growing faster YoY, but sequentially the company seems to have taken a small breather. EBITDA and PAT dipped compared to the previous half, possibly due to higher interest costs and capacity ramp-up expenses. This is not alarming, but it’s not a mic-drop either.
Question for you: would you prefer smooth consistent profits, or explosive growth with some volatility?
5. Valuation Discussion – Fair Value Range Only
Let’s get our calculator out, but keep our emotions in check.
Method 1: P/E Based
Current CMP ≈ ₹629 Annualised EPS ≈ ₹17.88
Implied P/E ≈ 35x
Industry median P/E ≈ 20–21x
If Baheti were valued at:
22x EPS → ₹393
26x EPS → ₹465
30x EPS → ₹536
Method 2: EV / EBITDA
Enterprise Value ≈ ₹855 crore TTM EBITDA ≈ ₹45 crore
EV/EBITDA ≈ 19x
Peers trade between ~13x to 18x. Assigning a fair range of 14x–17x EBITDA implies EV of ₹630–765 crore. After adjusting debt, implied equity value lands lower than current market
