Stock to buy: Jain Resource Recycling Limited share price snapped its two-day winning streak and ended lower on Wednesday, September 9. The minor decline is unlikely to dent the stock’s growth outlook. Brokerages are bullish on the diversified metal stock. The company is at a pivotal stage of its growth journey, and has carved out a niche as a multi-metal recycling platform, noted ICICI Securities in its report indicating nearly 25% upside in the stock valuation.
JRRL is breaking new ground as it is evolving from a volume-led recycler into an integrated circular-multi metals platform with an aim to augment value-capture per tonne.
The next phase of JRRL earnings is likely to depend on its copper downstream integration, sweating of existing assets and a structurally better product mix. The company's interesting product mix has created a distinct core to scale the business while limiting directional commodity price exposure, as per ICICI Securities report.
Despite a diverse product portfolio, copper will remain the key driving force behind the company’s growth trajectory. “We have built in a 23% volume CAGR for the copper division over FY26-29E driven by a ramp up of JRRL’s existing capacity (utilisation was ~65% in FY26) and the C&Y JV (meaningful contribution FY28E onwards),” noted the brokerage in its report.
The brokerage initiated a ‘Buy’ rating for the stock with a target price of ₹350 per share. “We initiate coverage with a BUY rating and a target price of INR 350, based on 23x FY29E EPS,” read the ICICI Securities report. The JRRL’s transition towards higher-value copper products, improving utlisation across businesses and strengthening feedstock integration would help drive growth and sustainability of earnings over next three financial years.