1. At a Glance
Pondy Oxides & Chemicals Ltd (POCL) has cracked the code to making money from what most people throw away. As India’s largest secondary lead producer, it converts scrap into high-margin metals that power everything from your car battery to industrial machinery. FY25 sales hit ₹2,188 crore with a PAT of ₹78 crore and a net margin of ~3.5%. ROCE stands at 16.8% — healthy enough to keep the financiers smiling — and the stock has delivered a mind-melting 84% CAGR over the last 3 years. Promoter holding, though, slipped to 39.9% in June 2025 from 48.9% a year ago — a yellow flag in an otherwise shiny metal pile.
2. Introduction
When most people see an old car battery, they see hazardous waste. Pondy Oxides sees cash flow. Incorporated in 1995, POCL has grown from a small lead smelter to a non-ferrous recycling powerhouse, turning lead, aluminium, copper, zinc, and their alloys into industrial-grade products for the global market.
Its core product, lead alloys, feeds the massive lead-acid battery industry — still the backbone of automotive and industrial energy storage. Add to that an expanding portfolio in zinc and aluminium products, and you have a vertically integrated recycler with global sourcing and export reach.
The business is simple to explain but complex to run — prices are tied to LME (London Metal Exchange) swings, operations must meet strict environmental norms, and competition in recycling is cutthroat. Yet POCL has managed steady growth,
margin stability, and investor-melting returns.
3. Business Model (WTF Do They Even Do?)
POCL takes in scrap metals — think dead batteries, used cables, industrial waste — and turns them into:
- Lead & Lead Alloys: Mainstay product, sold to battery manufacturers.
- Zinc & Zinc Oxide: For paints, rubbers, ceramics, and galvanizing.
- Aluminium & Copper Alloys: For auto, construction, and electrical applications.
The USP: It’s one of the largest secondary lead manufacturers in India, with capabilities in refining, alloying, and custom metallurgical compositions. This B2B game is all about quality, consistency, and global compliance. Customers can’t afford a bad batch — a failed battery plate in a major auto OEM’s supply chain is the kind of PR disaster nobody wants.
4. Financials Overview
Fresh P/E calc:
- Jun 2025 EPS = ₹9.69 → Annualized = ₹38.76.
- CMP ₹1,074 → P/E ~27.7 (vs 39.1 TTM — showing strong recent EPS momentum).
FY25 Snapshot:
- Revenue: ₹2,188 Cr (8% YoY growth from ₹2,028 Cr)
- EBITDA: ₹123 Cr (6% margin)
- PAT:
