1. At a Glance
India’s largest recycler of lead-acid battery scrap, Pondy Oxides is the “Kabadiwala King” of the metals game. The stock has 4x’d in 3 years. But is this alchemy or just alloyed optimism? Margins are shy, promoters are selling, and the P/E is higher than your blood pressure after seeing the IPO frenzy.
2. Introduction with Hook
Imagine a company that turns old, dead batteries into shiny profits. Sounds like sorcery from Hogwarts’ scrapyard, right? Welcome to POCL – where garbage goes in, balance sheet comes out.
- Revenue TTM: ₹2,188 Cr
- TTM Profit Growth: 64%
- Promoter holding? Let’s just say they’ve been hitting the ‘Exit’ button harder than traders in a mid-cap panic.
3. Business Model (WTF Do They Even Do?)
Basically, they run an industrial recycling operation, but market it like they’re saving the planet one dead inverter battery at a time.
- Core Products: Secondary Lead, Lead Alloys, Zinc, Copper.
- Sourcing: They grab discarded batteries and lead scrap.
- Process: Smelt, purify, alloy, and ship out to battery manufacturers.
- End Users: Battery companies, cable makers, and heavy metal fanatics (probably).
They don’t mine metals — they mine garbage. Genius? Or just greasy?
4. Financials Overview
Let’s look at the big, shiny numbers (FY25):
| Metric | Value |
|---|---|
| Revenue (TTM) | ₹2,188 Cr |
| EBITDA | ₹123 Cr |
| Net Profit | ₹78 Cr |
| EPS | ₹28.14 |
| ROCE | 17% |
| ROE | 14% |
Margins are decent, but thinner than a wafer. Profit growth is popping off (64% TTM), but that’s partly post-pandemic normalization.
5. Valuation
This stock trades at a P/E of 34.5x, which for a metal recycler is… ambitious. Like buying a rusted Maruti at BMW prices.
Valuation Range:
| Method | Fair Value Range |
|---|---|
| P/E @ 20x–25x | ₹560 – ₹700 |
| EV/EBITDA @ 8x–10x | ₹640 – ₹800 |
At ₹948, it’s priced like it recycles gold, not junk lead. Margin of safety? More like margin of danger.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Profit up 89.6% – Looks like batteries are back in demand (or they sold something they won’t tell us about).
- Massive QIP & Pref Allotment – Over ₹300 Cr raised, fully utilized, says CARE.
- Promoters Sold 9% Stake in a Year – Like a chef stepping out of his kitchen just as the food’s ready. Suspicious much?
This plot has more twists than a Netflix thriller.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 14 |
| Reserves | 583 |
| Total Borrowings | 103 |
| Total Liabilities | 731 |
| Fixed Assets + CWIP | 205 |
| Net Worth | 597 |
Debt isn’t Titanic-level, but it’s no cruise ship either. Net worth is solid — unless metals crash and turn this into a lead balloon.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹65 Cr | -₹90 Cr | ₹25 Cr | -₹1 Cr |
| FY24 | ₹64 Cr | -₹51 Cr | -₹3 Cr | ₹11 Cr |
| FY25 | -₹79 Cr | -₹67 Cr | ₹175 Cr | ₹28 Cr |
Looks like a freelancer’s wallet — money comes, money goes, bank account remains the same.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 17% |
| ROE | 14% |
| P/E | 34.5x |
| PAT Margin | 3.5% |
| D/E | 0.17 |
ROCE is decent, but PAT margin? That’s thinner than corporate coffee.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹1,472 Cr | ₹80 Cr | ₹49 Cr |
| FY24 | ₹1,524 Cr | ₹73 Cr | ₹40 Cr |
| FY25 | ₹2,028 Cr | ₹104 Cr | ₹65 Cr |
FY25 shows serious growth – but look closely and you’ll see PAT growth is a bit “blink and you’ll miss it.”
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E | ROCE |
|---|---|---|---|---|
| Vedanta | ₹1,52,968 | ₹13,839 | 12.9x | 25.3% |
| Pondy Oxides | ₹2,188 | ₹78 | 34.5x | 16.8% |
| Innomet | ₹32 | ₹1.9 | 115.7x | 8.5% |
| Bonlon | ₹623 | ₹2.7 | 21.1x | 5.0% |
Looks like the least drunk guest at a wedding full of metals-heads. Vedanta looks like a better bargain — if you don’t mind the drama.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2024 | Mar 2025 | Jun 2025 |
|---|---|---|---|
| Promoters | 45.1% | 40.6% | 39.9% |
| FIIs | 0.02% | 2.10% | 1.33% |
| DIIs | 0.00% | 4.88% | 6.15% |
| Public | 54.8% | 52.4% | 52.6% |
Promoter stake is melting like an ice cream in Chennai. DIIs smell something bullish, though.
13. EduInvesting Verdict™
Pondy Oxides has a unique niche — recycling toxic metal waste into profit. Financials are okay, margins are meh, and the stock is priced like it runs on AI, not acid batteries.
If you’re in it, enjoy the ride. If not, maybe let this oxidize a bit before jumping in.
A decent pit stop. But don’t expect business class legroom.
Metadata:
Written by EduInvesting Team | July 23, 2025
Tags: Pondy Oxides, POCL, Battery Recycling, Lead Alloy, EduInvesting Premium
