Nupur Recyclers (NRL)

FairStock Score: 58/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 71.61% shows strong recent expansion
• Low debt/equity of 0.11 and ROCE of 19.17% indicate prudent capital use
• Promoter holding of 73.02% aligns management with minority shareholders
• Piotroski F-Score of 7/9 suggests solid fundamental health
• Latest quarter profitable with ₹5 Cr net profit on ₹59 Cr sales

Concerns

• P/E of 27.15 is rich for a metals trading business with limited pricing power
• Profit growth of 27.85% lags sales growth of 71.61%, implying margin pressure
• Zero dividend means returns depend entirely on future growth
• Price has fallen from ₹118 to ₹56.40, highlighting cyclicality and volatility

AI Analysis

When I look at Nupur Recyclers, I first remind myself that a wonderful business is one that can earn high returns on capital while keeping its customers coming back. Nupur is a metal trader, not a franchise with pricing power. Sales grew 71.61% and profits 27.85%, which sounds exciting, but the lag between them tells me margins are being compressed. In the latest quarter, ₹59 Cr of sales produced only ₹5 Cr of profit—roughly 8.5% net margin. A trader lives on volume and inventory turns, and metal prices can reverse as quickly as they rise. The balance sheet is sound: debt/equity of just 0.11 and ROCE of 19.17% show management is not over-leveraged, and the Piotroski score of 7/9 supports the picture of financial health. Promoter holding of 73.02% is a positive; the owners are fully aligned with minority holders. But at ₹56.40, the stock still trades at 27.15 times earnings and 3.05 times book. With zero dividend, all my return depends on continued growth. The 52-week range of ₹45.10 to ₹118.00 reminds me that this is a volatile, cyclical business—not a steady compounder. A PEG of 0.55 appears cheap, but I mistrust PEG ratios applied to commodity-linked traders because growth here can mean peak-cycle earnings. Benjamin Graham would ask for a margin of safety. At 27 times earnings, I don't see it. I would put this on the watchlist, not in the portfolio, unless margins stabilize and the cycle proves more durable.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer