1. At a Glance – Metal Recycling Ka Rockstar Ya Thin Margin Ka Acrobat?
Rajputana Industries Ltd is currently trading at ₹75.5, with a market cap of ₹168 crore, a P/E of 16.2, and a Price-to-Book of 2.61. Over the last three months, the stock is down 16.1% — so clearly Mr. Market is not throwing flowers.
But here’s the twist.
For the quarter ended December 2025 (Q3 FY26), the company reported:
- Quarterly sales: ₹176.82 crore (up 21.7% YoY)
- Quarterly PAT: ₹3.00 crore (up 33.3% YoY)
- EPS (Q3): ₹1.35
- 9M FY26 revenue: ₹509.90 crore
- 9M FY26 net profit: ₹8.40 crore (up 33%)
- ROCE: 18.1%
- ROE: 17.1%
- Debt: ₹52 crore
- Debt-to-equity: 0.81
This is a scrap recycler turning copper, brass, and aluminium waste into rods, billets, busbars, and even bullet shells. Yes, bullet shells. Because why not?
Margins are thin. Growth is fast. Debt is moderate. And capacity utilisation is improving.
So is this a disciplined recycler scaling up… or a volume-chasing metal trader surviving on 3–4% operating margins?
Let’s melt the metal and see what’s inside.
2. Introduction – Scrap Metal Se Shareholder Value?
Founded in 2011, Rajputana Industries Limited manufactures non-ferrous metal products using recycled scrap. Copper, aluminium, brass — if it shines and conducts electricity, they probably recycle it.
The company is a subsidiary of Shera Energy Limited, and it got listed on the NSE SME platform in August 2024. IPO raised ₹23.9 crore, mainly for working capital, solar power installation, and corporate purposes.
Now here’s the interesting part.
In FY25, revenue jumped from ₹326.52 crore to ₹552.41 crore — a 69% YoY growth. That’s not growth. That’s turbo mode.
But what happened to margins?
PBILDT margin fell from 5.39% to 3.29% in FY25.
Why?
Because management gave cash discounts to boost volumes and reduce working capital borrowings.
So they basically said:
“Let’s sell more. Even if margins cry a little.”
Classic volume-driven strategy.
Now ask yourself:
Would you rather own a company chasing high volume with low margins — or low volume with fat margins?
Let’s keep digging.
3. Business Model – WTF Do They Even Do?
Imagine this.
Scrap copper. Scrap brass. Scrap aluminium.
They buy it.
They melt it.
They refine it.
They convert it into rods, billets, busbars, wires, conductors.
And then sell it to electrical, automotive, renewable energy, HVAC, construction, aerospace — basically anyone who needs metal that conducts electricity or doesn’t rust.
Product mix revenue:
- Copper products: 55%
- Brass & alloys: 23%
- Aluminium products: 19%
Installed capacity (FY25): 13,150 MT
Capacity utilisation: 79% overall
Breakup:
- Aluminium: 78%
- Copper: 85%
- Brass: 76%
Copper utilisation at 85% is strong. That’s the highest-margin metal in their portfolio.
But here’s the spicy bit:
Top 5 customers contribute 85% of revenue.
Top 10 contribute 90%.
That’s not diversification.
That’s concentration.
If one
