Nupur Recyclers Ltd – ₹496 Crore Market Cap, Auditor Resigns but Promoter Keeps Buying: A Scrap Metal Soap Opera
1. At a Glance
Here’s a company that claims to recycle metals but ends up recycling headlines instead. Nupur Recyclers Ltd (NRL) – market cap ~₹496 Cr, share price ₹71.8 – has more drama than a Colors TV serial. On one side, promoters are busy mopping up shares like they’re buying Diwali gifts. On the other, auditors are exiting faster than guests at a Shaadi where biryani ran out early. Net result? Investors are stuck between “scrap business” and “scrappy governance.”
2. Introduction
Founded in 2019, NRL is a baby in corporate years. Yet, in just six years, it has already checked all the classic “Dalal Street bingo” boxes:
Shiny certifications (ISO 9001, ISO 14001, ISO 45001 – sounds like JEE roll numbers).
Promoter buying announcements every other week – “Madam ne 50,000 shares aur kharid liye, ab kya?”
Auditor resignations with cryptic notes – because apparently “recyclers” also recycle auditors.
Now, don’t mistake it for Tata Steel 2.0. This isn’t about making giant girders or bridges. It’s about importing, processing, and trading ferrous and non-ferrous scraps – basically industrial-level kabadiwala with corporate swagger.
And the stock? From a high of ₹143, it’s now sulking at ₹71.8. That’s a 50% discount sale—without Flipkart banners.
But here’s the real question: when a company with sales falling 24% still sports a P/E of 36+, is it value or is it “value tum samajh nahi rahe ho”?
3. Business Model – WTF Do They Even Do?
Think of Nupur Recyclers as your friendly neighborhood kabadiwala—but instead of ringing your doorbell for newspapers, they’re importing metal scrap containers.
Import: Scrap comes from abroad like NRIs during summer vacations.
Processing: They clean it up, sort it, melt it.
Trading: Sell the recycled goods to metal manufacturers who don’t care where it came from, as long as margins are good.
Manufacturing/Casting: Dabbling in making recycled products, trying to prove they’re not just middlemen.
Sounds simple? Yes. But then why does it need four ISO certificates? Maybe because “quality kabadi” sounds like an oxymoron.
Also, in FY25, sales dropped to ₹158 Cr from ₹240 Cr. Yet, profit rose to ₹16 Cr. How? A generous helping of “other income” worth ₹9 Cr. Basically, their side hustle makes more sense than the main hustle.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹51.0 Cr
₹35.6 Cr
₹37.2 Cr
43.2%
37.1%
EBITDA
₹4.0 Cr
₹4.8 Cr
₹2.0 Cr
-16.7%
101%
PAT
₹4.05 Cr
₹5.06 Cr
₹2.31 Cr
-20.0%
75.3%
EPS (₹)
0.52
0.65
0.30
-20.0%
73.3%
Commentary: Revenue growth looks like a sprint, but profits are limping. EPS annualized is ₹2.08, giving a P/E ~34x. For a “scrap” trader, that’s like paying Louis Vuitton prices for a Dharavi bag.
5. Valuation – Fair Value Range Only
Let’s try three methods:
P/E Method
EPS (annualized): ₹2.08
Industry PE: ~27
Fair Price = 2.08 × (25–30) = ₹52–₹62
EV/EBITDA Method
EBITDA (TTM): ~₹15 Cr
EV: ₹504 Cr
EV/EBITDA: ~33.6 (industry ~15–20)
Fair EV = 15 × 15 = ~₹225–₹300 Cr → Equity value ~₹32–₹45 per share
DCF (quick & dirty)
Assume FCF ~₹10 Cr growing 8% for 5 years, terminal growth 3%, WACC 12%.
Fair value ≈ ₹55–₹70 per share.
Fair Value Range: ₹45–₹70 (For education only. Not investment advice. Don’t tag SEBI.)
6. What’s Cooking – News, Triggers, Drama
Promoter Buying: Director Nupur Gupta keeps scooping shares—first on 21 Aug, then again on 25 Aug 2025. Either supreme confidence, or an attempt to calm investors post-auditor drama.
Auditor Exit: AVAMS & Associates resigned from subsidiary Frank Metals on 13 Aug,
