Nupur Recyclers Limited

Nupur Recyclers Limited is working in the field of import of non-ferrous metal scrap such as shredded Zinc Scrap, Zinc die cast scrap, Zurik SS scrap and Aluminium zorba grades. It is also involved in trading of these metal. It processes materials from recyclables' such as metal or scrap to make the earth healthy. It develops efficient recycled products and work with the customers to give them quality products. It processes a different range of materials with the pieces of equipment and work with the customers to give them quality products. Company operates as an important intermediary in the Metals scrap Supply Chain whereby they import scrap metals such as zinc, zurik (shredded nonferrous metals predominantly comprising stainless steel, plus insulated copper wire (ICW), aluminium, copper, lead, magnesium and other metals) from various suppliers and supply the same to customers in the Metal Business. Company’s business model is based on B2B model where in the company sells the scrap to the business enterprises who further transform the scrap into finished product as per their requirements. They also process and segregate the scrap metals and sell them as per the customers' requirements as per their quality by assigning specific grades. On the financial performance front, Nupur Recycles Limited has posted turnover/net profits (loss) of Rs. 1.60 Cr. / 3.02 Cr. (FY19), Rs. 2.44 Cr. / 5.15 Cr. (FY20), Rs. 2.44 Cr. / 6.05 Cr. (FY21) Rs .39.34 Cr / 6.64 Cr. (Q1FY22). So company has shown exceptional growth. For the last three years, company has posted average EPS of Rs. 3.36 and RoNW of 0.77%. The issue is priced at a P/BV of 2.45 based on its NAVs of Rs. 24.47 post issue. As per FY21 earnings, on fully diluted equity post issue, IPO is priced at P/E of around 12.42, and as per FY22 annualised earnings, P/E is around 4.70, which looks reasonably priced. Comparison between listed peers in shown above table, but it can't be compared apple to apple basic. On BRLM's front, Corporate Capital Venture private limited associated with this SME IPO and has not handled any SME IPO in last 3 years. ( on 06.12.21 ) For Nupur Recyclers Limited financials are good, RoNW is 0.99% and P/E is around 12 for FY21 earnings, so issue looks reasonably priced. Due to rise in metal prices, metal sector has outperformed the market. But this sector is very highly competitive. Performance of BRLM is not available. So we give NEUTRAL rating to this SME IPO.

• 1 Mr. Rajesh Gupta 
• 2 Mr. Anoop Garg