Sunlite Recycling Industries Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Sunlite Recycling Industries Ltd trades at ₹464, in a confirmed uptrend and 59 weeks into that stage. That is +22.7% against its own 200-day average. It sits at 88% of a 52-week range of ₹171 to ₹503. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week.

Today the stock is in a confirmed uptrend — week 59 of stage 2, confirmed. At ₹464 it trades +22.7% versus its 200-day average and sits at 88% of its 52-week range (₹171–₹503).

Against the market, two honest reads. Cumulative: over the last 2.0 years the stock moved +158% while the NIFTY 500 moved +0% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 1 straight week — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Sunlite Recycling Industries Ltd's story is not scored yet against the markers our research file set on 17 May 2026. Where it sits in its own cycle: EARLY_EXPANSION. Still open: 2% EBITDA on consolidated FY26 means a 50bps margin squeeze halves the PAT — physical hedging mitigates but does not eliminate.

Our read, 17 May 2026. A recycler turning into a value-added manufacturer — EBITDA per ton doubled in one year, capex pivot from commodity to anode/ATC confirms the direction.

From the numbers. PE at 80th percentile (current 28.1x vs median 20x) on Bronze-tier data (limited history, low reliability flag). EXPANSION momentum in the cycle. FIIs exited from 2.58% (Sep 2024) to 0% (Mar 2026) — opposite of the…

From the price. Price stage 2, week 59 — above its 200-day line, relative strength falling.

From the research. A recycler turning into a value-added manufacturer — EBITDA per ton doubled in one year, capex pivot from commodity to anode/ATC confirms the direction.

🚨 Where they disagree. PE at 80th percentile (current 28.1x vs median 20x) on Bronze-tier data (limited history, low reliability flag). EXPANSION momentum in the cycle. FIIs exited from 2.58% (Sep 2024) to 0% (Mar 2026) — opposite of the smart-money confirmation seen in RRKABEL. DIIs also declining (4.01% → 0.84%). Promoters incrementally buying (73.53% → 74.47%) suggests internal conviction. The valuation is not in a depressed entry zone; the thesis requires execution to justify current multiples.

What is proven. A recycler turning into a value-added manufacturer — EBITDA per ton doubled in one year, capex pivot from commodity to anode/ATC confirms the direction.

What is not proven yet. 2% EBITDA on consolidated FY26 means a 50bps margin squeeze halves the PAT — physical hedging mitigates but does not eliminate.

The test written in advance. Copper commodity price spike eliminates PAT — Copper commodity price spike eliminates PAT Q1 FY27 EBITDA per ton vs copper LME; if below Rs 20,000 the mix-shift thesis is under pressure by the next result.

The test written in advance. Management consistency — dual discrepancies in single call — Management consistency — dual discrepancies in single call Q1 FY27 concall: does management acknowledge the utilization definition and provide consistent numbers? by the next result.

The test written in advance. ATC and busbar utilization plateau below 70% — ATC and busbar utilization plateau below 70% ATC utilization target 70-80% in FY27; miss below 65% = signal demand weakness by the next result.

What the company does. FY26 standalone PAT +181%, revenue +98% YoY — driven entirely by product mix shift toward ATC wire and busbars, with EBITDA per ton jumping from Rs 14,000 to Rs 23,000. Management pivoted capex from a crowded cathode market to an anode plant + copper rod doubling — structural signal that the commodity-escape strategy is deliberate, not opportunistic. Risk: PE at 80th percentile on Bronze-tier data, management disclosed two internal consistency flags in the same call, and the 2% EBITDA base leaves no margin for commodity price error.

Lever 2 · Value-added mix — BUILDING. EBITDA per ton doubled from Rs 14,000 to Rs 23,000 as ATC and busbar volumes scaled — standalone copper rod at 1.0% margin vs ATC/busbar at 1.3-1.5%. What proves it keeps working: Value-Added Product Mix Shift (ATC wire + busbars). It stops working if Q1 FY27 EBITDA per ton vs copper LME; if below Rs 20,000 the mix-shift thesis is under pressure.

Lever 1 · Operating leverage — BUILDING. Copper rod running at 95%+ of 25,000 MTPA capacity — fixed cost leverage material; doubling to 50,000 MTPA extends this runway through FY28. What proves it keeps working: Operating Leverage on Near-Full Copper Rod Utilization. It stops working if Q1 FY27 EBITDA per ton vs copper LME; if below Rs 20,000 the mix-shift thesis is under pressure.

Lever 6 · Order-book wins — BUILDING. Rs 30-35 Cr capex over 1.5 years: anode plant (10,000-12,000 MTPA at Rs 6 Cr) + copper rod doubling to 50,000 MTPA; FY27-FY28 revenue window. What proves it keeps working: Anode Plant + Copper Rod Doubling (Capacity Expansion). It stops working if Q1 FY27 EBITDA per ton vs copper LME; if below Rs 20,000 the mix-shift thesis is under pressure.

Lever 14 · A bigger market to sell into — BUILDING. ATC wire positioned as renewable energy infrastructure play; cable and transformer industries driving copper recycling demand growth. What proves it keeps working: Circular Economy Tailwind (Renewable Energy + Infrastructure). It stops working if Q1 FY27 EBITDA per ton vs copper LME; if below Rs 20,000 the mix-shift thesis is under pressure.

Sources: our stock research file (17 May 2026) · quarterly results through Mar 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Sunlite Recycling Industries Ltd reported ₹1,669 Cr of revenue in the Mar 26 quarter, +119.6% year on year. That is the 4th straight quarter of year-on-year growth. Over 3 years it has compounded at 34.4% a year. The last full year, FY26, came in at ₹2,791 Cr. The last four reported quarters add to ₹4,188 Cr.

Why this happened. The pivot from cathode (too crowded, decreasing margins) to anode (structural demand from ore-based copper producers, favorable supply dynamics) is the strategic inflection. Land already acquired. Anode plant targeting 50% first-year utilization. Copper rod capacity doubling planned operational FY27-FY28 at 60% first-year utilization. If executed, this extends the platform for value-added product scale.

FY26 revenue came in at ₹2,791 Cr (+99.8% on the year), capping 3 years at 34.4% compound. The latest quarter (Mar 26) printed ₹1,669 Cr, +119.6% year on year — the 4th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +59.1% growth against the decade's 34.4% — the current year is running faster than its own long-run rate.

FY26-Q3. H2 FY26 acceleration begins — ATC capacity doubled, busbars launched

Why-sources: our stock research file (17 May 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Sunlite Recycling Industries Ltd's operating margin is 2.3% in the Mar 26 quarter, +0.7 percentage points against the same quarter a year ago. Across the last four quarters the operating margin has moved +0.3 percentage points. Across 4 fiscal years the operating margin has ranged 1.0% to 2.2%. The current quarter is running above every full year in that window.

Why this happened. The core thesis driver. FY26 H2 was the inflection point: ATC capacity doubled in August 2025 to 1,600 MTPA, and busbar production began. The EBITDA per ton expansion from Rs 14,000 to Rs 23,000 came entirely from this mix shift — management confirmed inventory gains account for only 3-4% of the reported EBITDA/ton, leaving 60%+ attributed to the mix change. Current ATC utilization at 60-70% on full capacity, with FY27 target of 70-80%. The capex program (anode plant + copper rod doubling) extends this mix-shift trajectory into FY28.

The latest quarter's operating margin is 2.3%, +0.7 pp against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged 1.0%–2.2%.

Why the margin moved: operating margin went +0.6 pp year on year while gross margin went +0.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

FY26-Q3. H2 FY26 acceleration begins — ATC capacity doubled, busbars launched

Why-sources: our stock research file (17 May 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Sunlite Recycling Industries Ltd earned ₹27.0 Cr of net profit in the Mar 26 quarter, +285.7% year on year. It is the 4th consecutive quarter of growth. Full-year FY26 profit was ₹41.0 Cr. The 3-year compound rate is 89.8%. That is 1.6% of the quarter's revenue. The same quarter a year earlier earned ₹5.0 Cr.

Mar 26 profit was ₹27.0 Cr, +285.7% year on year — the 4th consecutive quarter of growth. On the full year, FY26 printed ₹41.0 Cr (+192.9%), and the 3-year compound rate is 89.8%.

Why profit moved: revenue contributed +119.6% and the margin +0.7 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +125.2% vs revenue +59.1%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q3. H2 FY26 acceleration begins — ATC capacity doubled, busbars launched

Why-sources: our stock research file (17 May 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 30% of Sunlite Recycling Industries Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹0.0 Cr of operating cash against ₹41.0 Cr of profit. After ₹58.0 Cr of capital spending, ₹−58.0 Cr was left as free cash.

FY26: operating cash of ₹0.0 Cr against reported profit of ₹41.0 Cr, leaving free cash of ₹−58.0 Cr after ₹58.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 30% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 30%: the cash cycle held roughly steady between FY23 and FY26 — so conversion tracks profitability rather than the cycle. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 8.1× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Sunlite Recycling Industries Ltd's cash conversion cycle runs 12 days in FY26, up from 11 days in FY23. Capital spending ran ₹65.0 Cr over the last 3 years. At FY26 sales of ₹2,791 Cr each day of that cycle holds about ₹7.6 Cr, so roughly ₹92.0 Cr sits inside the business at any moment.

FY26: debtors at 3 days, inventory at 13 days — roughly 0.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 12 days, looser than FY23's 11.

The full loop: cash goes out to suppliers and production on day 0; stock waits 13 days to sell; customers pay about 3 days after that; and suppliers themselves are paid at 5 days — netting out to the 12-day cycle.

In money terms: at FY26 sales of ₹2,791 Cr, each day of the cycle holds about ₹7.6 Cr — so the 12-day loop keeps roughly ₹92.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹65.0 Cr over the last 3 fiscal years against ₹8.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Sunlite Recycling Industries Ltd earns a ROCE of 36% in FY25. Return on invested capital clears the cost of that capital by +11.9 percentage points, so growth here adds value rather than only size. The wiring behind it is 1.5% net margin on 11.88× asset turns.

FY25 ROCE is 36%.

Why the return is what it is — the wiring (FY26): 1.5% net margin × 11.88× asset turns × 1.45× balance-sheet leverage ≈ 25.8% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 23.9% − 12.0% = a +11.9 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Sunlite Recycling Industries Ltd carries ₹21.0 Cr of borrowings against ₹162 Cr of equity in FY26, a debt-to-equity of 0.13. Operating profit covers the interest bill 20×. Over 3 years borrowings went from ₹46.0 Cr to ₹21.0 Cr. Capital spending ran ₹65.0 Cr across the last 3 of those years.

FY26: borrowings of ₹21.0 Cr against equity of ₹162 Cr — a debt-to-equity of 0.13. Operating profit covers the interest bill 20×. Over 3 years borrowings went from ₹46.0 Cr to ₹21.0 Cr while capital spending ran ₹65.0 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions cut 3.2 points of Sunlite Recycling Industries Ltd over 6 quarters, the biggest move on the register. That takes domestic institutions to 0.8% of the company. Foreign institutions moved −2.6 points over the same window, to 0.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −3.2 points over 6 quarters to 0.8%; Foreign institutions: −2.6 points over 6 quarters to 0.0%; Promoters: +0.9 points over 6 quarters to 74.5%.

🚨 Why the register moved: domestic institutions drove it (−3.2 points), alongside foreign institutions (−2.6 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Sunlite Recycling Industries Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Sunlite Recycling Industries Ltd trades at 15.6× P/E, mid-range by its own standards (59th percentile). Its long-run median P/E is 15.0×, measured across 1.3 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 15.6× is mid-range by its own standards (59th percentile), against a long-run median of 15.0× measured over 1.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +126.4% against a +211.6% price move — the price outran earnings, pushing the multiple UP its own range.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Sunlite Recycling Industries Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 4 quarters across 0 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

52.3/100 — rank 1 of 2 in Metal - Copper/Copper Alloy Products · 53% evidence confidence

Sunlite Recycling Industries Ltd scores 52.3 out of 100 against the 2 companies it is compared with in Metal - Copper/Copper Alloy Products, ranking 1. Fill the missing evidence before acting; the ranking is deliberately pulled toward neutral.

The four contributions add to the total exactly: 20.5 + 16.8 + 10 + 5 = 52.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Frequently asked questions