Horizon Reclaim (India) Limited is a manufacturer of reclaimed rubber, a recycled product derived from used rubber materials such as old tyres, rubber tubes, tread peelings, and industrial scrap (like EPDM). Reclaimed rubber serves as an eco-friendly and cost-effective alternative to natural and synthetic rubber. The company offers products across three main categories: Natural Rubber Reclaim (used in footwear soles, floor mats, and tyre bases), Synthetic Rubber Reclaim (used in automotive seals, hoses, and gaskets), and Crumb rubber (utilized in road construction, sports surfaces, and roofing sheets). The company features a diversified B2B customer base across various end-use industries, including automotive, footwear, sports surfaces, and construction. Sales are geographically spread across multiple Indian states, with key revenue contributions coming from Haryana, Delhi, Uttar Pradesh, and West Bengal, reducing regional dependence. While the company maintains long-standing relationships with several clients, it is subject to moderate customer concentration, with its top 10 customers contributing 35.20% of its total revenue from operations during Fiscal 2026. Presently, the company conducts its manufacturing operations through its primary facility (Unit I) located at Roorkee, Haridwar, Uttarakhand. For the financial year ended March 31, 2026, this unit had a total installed capacity of 14,100 MT per annum and achieved an actual production of 12,690 MT, translating to a strong capacity utilization rate of 90.00%. To support aggressive future growth, the company has already completed the construction and machinery installation of a second facility at Bhagwanpur (Unit III) and is currently constructing another facility in Rajkot, Gujarat (Unit II) to manufacture pyrolysis oil. As per financial performance, Horizon Reclaim (India) Limited has posted total income / net profits of Rs 20.44 Cr / 0.71 Cr (FY24), Rs 36.39 Cr / Rs 7.07 Cr (FY25) and Rs 50.01 Cr / 10.50 Cr (FY26). So as per previous financials data, the company has shown excellent growth, and the trade receivables to total sales ratio is well-maintained at around 11.70%, 14.87%, and 6.84% for FY24, FY25 and FY26 respectively. Unlike many peers, operating cash flow is strictly positive for FY24 (Rs 1.49 Cr), FY25 (Rs 1.71 Cr), and FY26 (Rs 10.09 Cr). The company has an average EPS of Rs 5.42 and an average RoNW of 39.22% for the last three fiscals. The issue is priced at a P/BV of 2.54 as per the post-issue NAV of ~Rs 40.53/- (Pre-issue NAV is Rs 17.43). If we attribute the latest earnings of FY24, FY25 and FY26 on equity post-issue, then the asking price of Rs 103 is at a P/E of around 286.11, 28.45 and 19.14 respectively. As per RHP, comparison between listed peers (Lead Reclaim and Rubber Products Limited) is shown in the above table. On the BRLM's front, GYR Capital Advisors Private Limited is associated with this IPO, and has handled 44 IPOs in the last three fiscal years. From the last 10 tracked IPOs, all 10 opened above the issue price or at par, on the day of listing. As of now, from those 10 IPOs, only two are trading significantly below the issue price and the remaining are trading above the issue price or at par. (as on 06.06.26) As per financials, Horizon Reclaim (India) Limited has shown good growth, RoNW is 42.29% and P/E is 286.11, 28.45 and 19.14 respectively as per FY24, FY25 and FY26 earnings. So, the issue looks fully priced compared to its listed peer which trades at a P/E of 19.04. While cash flows are positive, the high debt-to-equity ratio of 1.44x, massive recent capital inflation (18:1 bonus issue), and historical corporate governance lapses raise severe doubts. The company is primarily engaged in the manufacturing of reclaimed rubber, operating entirely in the B2B segment, which is a highly competitive business segment. Performance of the BRLM is strong. So, we give an AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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