1. At a Glance
India’s OG e-waste handler, Eco Recycling Ltd (Ecoreco), makes money out of your discarded gadgets, broken bulbs, and corporate guilt. With an ROCE hotter than a burning lithium battery and zero debt, this smallcap darling is quietly riding India’s regulatory push for sustainability.
2. Introduction with Hook
If Ambani made a rupee every time you threw away a broken charger, he’d probably still be poorer than Eco Recycling Ltd in ROCE. This is a company that realized long before everyone else that one man’s trash is another man’s… EBITDA.
- Net Profit CAGR (5Y): 73%
- ROCE (FY25): 38%
- Debt: Practically none
- OPM (FY25): 70% — Yes. Seventy.
If your startup had these margins, you’d be on Shark Tank calling Namita “beta”.
3. Business Model (WTF Do They Even Do?)
Eco Recycling Ltd is India’s first listed e-waste management company, tackling the nasty afterlife of electronics.
Offerings:
- Reverse Logistics & Recycling-as-a-Service
- IT Asset Disposition (ITAD)
- Data Destruction (For when your secrets are hotter than your CPU)
- Lamp recycling, Battery shredding, and Precious Metal Recovery
- Government-mandated EPR Compliance solutions
They even launched “Recycling-on-Wheels”, because who says e-waste can’t come with delivery?
4. Financials Overview
Let’s see how the garbage goldmine stacks up:
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 18 | 28 | 44 |
| EBITDA (₹ Cr) | 4 | 16 | 31 |
| Net Profit (₹ Cr) | 6 | 18 | 23 |
| OPM (%) | 22% | 59% | 70% |
| EPS (₹) | 3.21 | 9.24 | 12.14 |
Growth:
- Sales CAGR (3Y): 42%
- Profit CAGR (3Y): 72%
- Margin CAGR (3Y): Unbelievable
5. Valuation
At CMP ₹611, the stock trades at:
- PE: ~50
- Price to Book: ~13.4
- Market Cap: ₹1,179 Cr
- Fair Value Range (conservatively): ₹460 – ₹740
Valuation looks demanding, but then again, so did Apple in 2005.
6. What’s Cooking – News, Triggers, Drama
- 🔥 FY25 PAT up 27% YoY – No slowdown here.
- 🏆 Won HURUN Industry Award – Finally, some recognition that’s not in grams.
- 🧨 Fire incident in Jan 2024 – No casualties, but a reminder: recycling is hazardous.
- 🎯 Govt. Viability Gap Funding under discussion
- 📦 QIP approved – More equity coming soon?
Also, India’s AI boom = More laptops = More junk = More revenue for Ecoreco. Simple.
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 19 | 19 | 19 |
| Reserves | 27 | 47 | 69 |
| Borrowings | 1 | 5 | 7 |
| Fixed Assets | 34 | 39 | 59 |
| Total Assets | 63 | 81 | 111 |
Key Takeaways:
- Healthy reserves growth
- Very low leverage
- Tangible asset-backed expansion
8. Cash Flow – Sab Number Game Hai
| Cash Flow (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 16 | -3 | 17 |
| Investing | -24 | 3 | -14 |
| Financing | -1 | -0 | -1 |
| Net Cash Flow | -9 | 0 | 1 |
Translation:
FY24 was Capex-heavy (probably fireproofing after Jan). But FY25 saw that pay off.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 8 | 33 | 38 |
| ROE (%) | 30 | 24 | 30.4 |
| Working Capital Days | 154 | 229 | 🚨 |
| OPM (%) | 22 | 59 | 70 |
Diagnosis:
If working capital doesn’t give you a headache, the inventory days (652 in FY25) will.
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | EBITDA | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| FY22 | 15 | 4 | 13 | 6.58 |
| FY23 | 18 | 4 | 6 | 3.21 |
| FY24 | 28 | 16 | 18 | 9.24 |
| FY25 | 44 | 31 | 23 | 12.14 |
11. Peer Comparison
| Company | CMP ₹ | M.Cap ₹ Cr | PE | ROCE (%) | PAT (Cr) | OPM (%) |
|---|---|---|---|---|---|---|
| EMS Ltd | 604 | 3,355 | 18 | 26.6 | 183 | 26% |
| Antony Waste | 668 | 1,895 | 27 | 12.1 | 69.6 | 20.9% |
| Concord Enviro | 595 | 1,232 | 21 | 14.8 | 58 | 15.4% |
| Eco Recycling | 611 | 1,179 | 50 | 38.2 | 23 | 70% |
Verdict:
Ecoreco’s margin profile is leagues ahead, but it comes at a spicy multiple.
12. Miscellaneous – Shareholding, Promoters
| Stakeholder | % Holding |
|---|---|
| Promoters | 73.35% |
| FIIs | 1.12% |
| DIIs | 0.11% |
| Public | 25.41% |
Other Notes:
- Increasing retail interest (from 10k to 31k shareholders in 2 years)
- Multiple resignations from auditors & secretaries—hmm, what’s brewing?
- Active in the media with regular sustainability PR—branding game strong.
13. EduInvesting Verdict™
Eco Recycling Ltd has turned e-waste into a multi-crore opportunity with margins that would make SaaS jealous. Their tech stack is strong, their books are cleaner than your recently wiped hard drive, and their runway seems long—especially with AI and ESG megatrends fueling more hardware, more regulations, and more e-junk.
But remember: no moat is bulletproof in this industry. Regulatory risk, working capital bloat, and execution scale are real challenges.
Just don’t throw away your old printer—EcoRecycling might be watching.
Metadata
– Written by EduInvesting | 13 July 2025
– Tags: e-waste, recycling, ESG, smallcap, high-ROCE, EcoRecycling, asset-light, ITAD, reverse-logistics, sustainability, India2030
