Other Utilities
Valuation | |
|---|---|
| Market Cap | 896.05 Cr |
| Price/Earnings (Trailing) | 43.71 |
| Price/Sales (Trailing) | 19.04 |
| EV/EBITDA | 30.01 |
| Price/Free Cashflow | -319.55 |
| MarketCap/EBT | 32.22 |
| Enterprise Value | 886.54 Cr |
Fundamentals | |
|---|---|
Growth & Returns | |
|---|---|
| Price Change 1W | -8.2% |
| Price Change 1M | -18.7% |
| Price Change 6M | -32.1% |
| Price Change 1Y | -50% |
| 3Y Cumulative Return | 45.3% |
| 5Y Cumulative Return | 55.7% |
| 7Y Cumulative Return | 39.6% |
| 10Y Cumulative Return | 27.6% |
| Revenue (TTM) |
| 44.65 Cr |
| Rev. Growth (Yr) | -25.5% |
| Earnings (TTM) | 19.16 Cr |
| Earnings Growth (Yr) | -56.8% |
Profitability | |
|---|---|
| Operating Margin | 59% |
| EBT Margin | 59% |
| Return on Equity | 21.21% |
| Return on Assets | 17.07% |
| Free Cashflow Yield | -0.31% |
Cash Flow & Liquidity |
|---|
| Cash Flow from Investing (TTM) | -14.05 Cr |
| Cash Flow from Operations (TTM) | 16.89 Cr |
| Cash Flow from Financing (TTM) | -1.44 Cr |
| Cash & Equivalents | 12.07 Cr |
| Free Cash Flow (TTM) | -3.6 Cr |
| Free Cash Flow/Share (TTM) | -1.87 |
Balance Sheet | |
|---|---|
| Total Assets | 127.99 Cr |
| Total Liabilities | 24.95 Cr |
| Shareholder Equity | 103.04 Cr |
| Current Assets | 61.8 Cr |
| Current Liabilities | 17.94 Cr |
| Net PPE | 58.15 Cr |
| Inventory | 10.66 Cr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.02 |
| Debt/Equity | 0.02 |
| Interest Coverage | 44.59 |
| Interest/Cashflow Ops | 27.81 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend Yield | 0.16% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 0.00% |
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Profitability: Very strong Profitability. One year profit margin are 46%.
Past Returns: Outperforming stock! In past three years, the stock has provided 45.3% return compared to 13% by NIFTY 50.
Balance Sheet: Strong Balance Sheet.
Momentum: Stock is suffering a negative price momentum. Stock is down -18.7% in last 30 days.
Size: It is a small market cap company and can be volatile.
Smart Money: Smart money looks to be reducing their stake in the stock.
Technicals: SharesGuru indicator is Bearish.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Profitability: Very strong Profitability. One year profit margin are 46%.
Past Returns: Outperforming stock! In past three years, the stock has provided 45.3% return compared to 13% by NIFTY 50.
Balance Sheet: Strong Balance Sheet.
Momentum: Stock is suffering a negative price momentum. Stock is down -18.7% in last 30 days.
Size: It is a small market cap company and can be volatile.
Smart Money: Smart money looks to be reducing their stake in the stock.
Technicals: SharesGuru indicator is Bearish.
Investor Care | |
|---|---|
| Dividend Yield | 0.16% |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 9.37 |
Financial Health | |
|---|---|
| Current Ratio | 3.44 |
| Debt/Equity | 0.02 |
Technical Indicators | |
|---|---|
| RSI (14d) | 38.18 |
| RSI (5d) | 23.39 |
| RSI (21d) | 37.67 |
| MACD Signal | Sell |
| Stochastic Oscillator Signal | Buy |
| SharesGuru Signal | Sell |
| RSI Signal | Hold |
| RSI5 Signal | Buy |
| RSI21 Signal | Hold |
| SMA 5 Signal | Sell |
| SMA 10 Signal | Sell |
| SMA 20 Signal | Sell |
| SMA 50 Signal | Sell |
| SMA 100 Signal | Sell |
Summary of Eco Recycling's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Management provided a positive outlook, driven by strong financial performance, regulatory tailwinds, and strategic expansions. Key highlights include:
1. Financial Growth: Q1 FY25 revenue surged 69.48% YoY to Rs.13.44 crore, EBITDA rose 76.38% (margin: 76.12%), and PAT increased 73.04% (margin: 60.64%). Standalone revenue grew 86.46%, with EBITDA and PAT nearly doubling.
2. Government Initiatives: Emphasis on India's Critical Mineral Mission to secure lithium, cobalt, and rare earths via recycling. EPR regulations and stricter CPCB enforcement are expected to channel more e-waste to formal recyclers like Ecoreco.
3. Capacity Expansion: Funded internally, capacity increased to 25,200 metric tons/year. Future expansions (e.g., lithium-ion battery recycling) will be evaluated by September 2025.
4. EPR Momentum: Management anticipates higher EPR fees as CPCB mandates formal sector pricing to bridge the informal-formal gap. This is expected to boost volume and margins.
5. Margin Sustainability: Focus on premium services for global clients, reduced procurement costs (via partnerships), and tech-driven efficiency aid high margins (EBITDA ~76%). No immediate pricing pressure expected due to compliance-driven demand.
6. Strategic Positioning: Leadership in compliant recycling, partnerships with global brands, and TERRA collaboration enhance credibility. Centralized facilities and innovation prioritize value over volume.
7. Future Plans: Utilization of new facilities (post-June 2024 inauguration) and alignment with the Rs. 15,000 crore MSME subsidy for eco-investments will further scale operations.
Management remains confident in growth from regulatory support, capacity ramp-up, and strong client demand, targeting sustainable profitability through premium, compliant services.
Understand Eco Recycling ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| ECORECO VENTURES PRIVATE LIMITED | 52.19% |
| BRIJKISHOR KISHANGOPAL SONI | 13.91% |
| ARUNA BRIJKISHOR SONI | 6.03% |
| BRIJKISHORE SONI HUF | 1.22% |
Distribution across major stakeholders
Detailed comparison of Eco Recycling against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Comprehensive comparison against sector averages
ECORECO metrics compared to Other
| Category | ECORECO | Other |
|---|---|---|
| PE | 43.71 | 17.55 |
| PS | 19.04 | 2.81 |
| Growth | 11.2 % | 2 % |
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
ECORECO vs Other (2021 - 2026)
Question: Over the last quarter, Q4, we have seen a 75% jump in total income, but the materials consumed have more than halved. Can you explain what is happening there?
Answer: The reduction in material costs stems from negotiating lower acquisition prices for e-waste with producers (e.g., nominal pricing, shared expenses). Additionally, revenue growth includes EPR fees, reflecting a shift toward higher-margin service-driven income rather than raw material reliance.
Question: Are EPR fees expected to ramp up over the next 2-3 quarters?
Answer: Yes, due to rising recycling volumes, stricter CPCB enforcement to formalize the sector, and potential government-mandated EPR fee hikes to bridge price gaps between formal and informal recycling channels.
Question: How much net cash is in the business, and will it be monetized for expansion?
Answer: The company has accumulated cash internally, with Rs. 50 crores invested in plant and machinery. Future expansion plans (e.g., lithium-ion battery recycling) will be evaluated post-FY25, pending capacity utilization and performance assessments.
Question: What is the procurement mix (contractual vs. secondary markets vs. imports)?
Answer: 100% procurement is via direct agreements with end-users (MNCs, producers) or door-to-door collection. No reliance on secondary markets or imports.
Question: What was the weight of materials recycled this quarter?
Answer: Approximately 3,000 metric tons, inferred from profit metrics (Rs. 30/kg profit assumption). Focus remains on value over volume.
Question: How does the EPR mechanism work, and how are fees decided?
Answer: EPR mandates producers to ensure responsible disposal of end-of-life products. CPCB may standardize category-based EPR fees (for 7 e-waste categories) to incentivize formal recycling, compensating for higher operational costs vs. informal sectors.
Question: Can you quantify EPR revenue this quarter?
Answer: EPR fees are integrated into overall revenue (recycling, refurbishment, data destruction) and not disclosed separately to maintain competitive confidentiality.
Question: How did the company reduce raw material costs from MNCs?
Answer: Premium compliance services (environmental standards, advanced tech) justify higher fees. MNCs prioritize regulatory adherence over cost, enabling margin optimization without volume-driven procurement.
Question: Why did employee expenses remain low (Rs. 94 lakhs) despite 50 employees?
Answer: Expenses reflect operational efficiency and a mix of roles (collection, processing). Salaries, including leadership, are disclosed annually but emphasized as prudent and aligned with profitability.
Question: Are current margins (76% EBITDA) sustainable?
Answer: Margins reflect premium service pricing and cost discipline. Future growth hinges on value-driven models (not volume), with optimism around CPCB reforms and rising demand for compliant recycling.
Question: What is the status of the new facility's ramp-up and utilization?
Answer: Limited utilization in Q1 (inaugurated June 5), but capacity expansion (25,200 MT) positions the company for growth. CPCB's stricter enforcement is expected to boost formal-sector reliance, driving future utilization.
Question: How does the TERRA partnership benefit the company?
Answer: TERRA enhances global networking, client acquisition, and knowledge-sharing among top recyclers, indirectly boosting brand credibility and business opportunities.
Question: What differentiates Eco Recycling from competitors?
Answer: Emphasis on end-to-end compliance (vs. formalities) and premium services for MNCs/producers, ensuring adherence to global environmental standards. This fosters client trust and justifies higher fees.
Question: Are margins at risk with rising competition?
Answer: Margins are sustainable due to regulatory tailwinds (EPR enforcement) and focus on value over volume. Compliance-driven demand offsets competitive pressures.
Question: What are long-term capacity goals (5-7 years)?
Answer: Scalability aligns with margin-focused growth. Achieving 100,000 MT capacity is feasible, driven by regulatory demand and client trust in compliant recycling services.
Distribution across major institutional holders
| -72.8% |
| 2.82 |
| 7.68 |
| 4.63 |
| 3.23 |
| 3.71 |
| 3.62 |
| Profit Before exceptional items and Tax | -44.3% | 4.23 | 6.8 | 8.99 | 6.27 | 5.75 | 9.82 |
| Total profit before tax | -44.3% | 4.23 | 6.8 | 8.99 | 6.27 | 5.75 | 9.82 |
| Current tax | 950% | 2.05 | 1.1 | 0.9 | 2.88 | 1 | 1.65 |
| Deferred tax | 3.3% | 0.13 | 0.1 | 0 | -0.03 | 0.01 | 0.02 |
| Total tax | 490% | 2.18 | 1.2 | 0.9 | 2.85 | 1.01 | 1.67 |
| Total profit (loss) for period | -77.2% | 2.05 | 5.6 | 8.09 | 3.42 | 4.74 | 8.15 |
| Other comp. income net of taxes | 22% | -0.31 | -0.68 | 0.45 | 0 | -0.32 | 0.39 |
| Total Comprehensive Income | -81.1% | 1.74 | 4.92 | 8.54 | 3.42 | 4.42 | 8.54 |
| Earnings Per Share, Basic | -99% | 1.02 | 2.97 | 4.19 | 1.19 | 2.45 | 4.23 |
| Earnings Per Share, Diluted | -99% | 1.02 | 2.97 | 4.19 | 1.19 | 2.45 | 4.23 |
| 25.3% |
| 3.82 |
| 3.25 |
| 2.91 |
| 2.8 |
| 1.87 |
| 1.42 |
| Finance costs | -20% | 0.64 | 0.7 | 0.15 | 0 | 0.42 | 0.8 |
| Depreciation and Amortization | 100% | 1 | 0.8 | 0.93 | 0.47 | 0.47 | 0.47 |
| Other expenses | 3.3% | 2.56 | 2.51 | 4.93 | 3.79 | 6.03 | 5.09 |
| Total Expenses | 16.7% | 15 | 13 | 15 | 13 | 13 | 12 |
| Profit Before exceptional items and Tax | 63.2% | 32 | 20 | 6.54 | 14 | 5.47 | 1.23 |
| Total profit before tax | 63.2% | 32 | 20 | 6.54 | 14 | 5.47 | 1.23 |
| Current tax | 191.1% | 8.22 | 3.48 | 1.17 | 1.48 | 0.89 | 0.18 |
| Deferred tax | 40.2% | 0.36 | -0.07 | -0.8 | 0.04 | 0.21 | -0.07 |
| Total tax | 214.5% | 8.58 | 3.41 | 0.37 | 1.52 | 1.1 | 0.11 |
| Total profit (loss) for period | 46.7% | 23 | 16 | 6.17 | 12 | 4.37 | 1.12 |
| Other comp. income net of taxes | -457.1% | 0 | 1.28 | -7.13 | 4.78 | 3.57 | -1.27 |
| Total Comprehensive Income | 37.5% | 23 | 17 | -0.96 | 17 | 7.94 | -0.14 |
| Earnings Per Share, Basic | 50.1% | 12.09 | 8.39 | 3.2 | 6.47 | 2.27 | 0.605 |
| Earnings Per Share, Diluted | 50.1% | 12.09 | 8.39 | 3.2 | 6.47 | 2.27 | 0.605 |
| - |
| - |
| 0 |
| - |
| - |
| - |
| 1.53 |
| Non-current investments | -2.1% | 8.86 | 9.03 | 9.88 | 11 | 15 | 9.84 |
| Loans, non-current | 0% | 1.65 | 1.65 | 1.65 | 1.65 | 1.65 | 0 |
| Total non-current financial assets | 0% | 11 | 11 | 12 | 13 | 17 | 10 |
| Total non-current assets | -2.8% | 71 | 73 | 54 | 55 | 54 | 39 |
| Total assets | 15% | 124 | 108 | 78 | 69 | 63 | 65 |
| Borrowings, non-current | 0% | 1.15 | 1.15 | 1.15 | 0.15 | 0.15 | 9 |
| Total non-current financial liabilities | 2440% | 4.81 | 1.15 | 5.69 | 4.12 | 0.65 | 9.9 |
| Provisions, non-current | -226.1% | 0.25 | 0.77 | 0.76 | 0.72 | 0.72 | 0.85 |
| Total non-current liabilities | -15.3% | 5.38 | 6.17 | 7 | 6.66 | 1.71 | 12 |
| Borrowings, current | - | 0 | 0 | 0 | 0 | 0 | 0.9 |
| Total current financial liabilities | 356.1% | 2.87 | 1.41 | 0.96 | 1.41 | 11 | 2.1 |
| Provisions, current | 33.3% | 13 | 10 | 3.53 | 2 | 1.24 | 0.03 |
| Total current liabilities | 41.7% | 18 | 13 | 5.33 | 4.63 | 13 | 2.84 |
| Total liabilities | 22.2% | 23 | 19 | 12 | 11 | 15 | 15 |
| Equity share capital | 0% | 19 | 19 | 19 | 19 | 19 | 19 |
| Total equity | 14.9% | 101 | 88 | 65 | 58 | 48 | 51 |
| Total equity and liabilities | 15% | 124 | 108 | 78 | 69 | 63 | 65 |
| 585.4% |
| 16 |
| -2.09 |
| 17 |
| 0.55 |
| - |
| - |
| Purchase of property, plant and equipment | 1726.9% | 20 | 2.04 | 21 | 0 | - | - |
| Proceeds from sales of long-term assets | 77.4% | 7.12 | 4.45 | 0 | 0 | - | - |
| Dividends received | -14.9% | 0 | 0.13 | 0.25 | 0.37 | - | - |
| Interest received | - | 0.11 | 0 | 0.2 | 0.05 | - | - |
| Net Cashflows From Investing Activities | -1026% | -13.26 | 2.54 | -24.62 | 7.64 | - | - |
| Proceeds from borrowings | - | 0 | 0 | 0 | 0.5 | - | - |
| Repayments of borrowings | - | 0 | 0 | 0.5 | 0.25 | - | - |
| Payments of lease liabilities | - | 1.08 | 0 | 0 | 0 | - | - |
| Net Cashflows from Financing Activities | - | -1.08 | 0 | -0.5 | 0.25 | - | - |
| Net change in cash and cash eq. | 198.2% | 1.54 | 0.45 | -8.56 | 8.44 | - | - |