Sunlite Recycling Industries Limited IPO

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Sunlite Recycling Industries Limited are engaged in the manufacturing of copper rods, wires, earthing wires, earthing strips, conductors, and wire bars through the recycling of copper scrap. These products possess electrical and mechanical properties that make them suitable for applications in power generation, transmission, distribution, and the electronics industry.

Additionally, they provide job work services for processing various copper products, employing a rigorous internal quality control mechanism to ensure that their finished products meet their customers’ exact specifications.

Product Portfolio

Their diversified product portfolio includes various grades, thicknesses, widths, and standards of copper products, all tailored to meet customer specifications. The range encompasses:
i. Copper rods and wires                                                           ii. Copper earthing wires and strips
iii. Copper conductors                                                              iv. Copper wire bars

They emphasize environmental and safety considerations in their production process. By recycling copper scrap and using electricity from solar generation and clean natural gas, they significantly reduce pollution compared to conventional oil-based energy sources. Copper is one of the most recycled metals, and recycling copper scrap is energy-efficient and conserves natural resources, as highlighted by the Indian Bureau of Mines.

Summary

Sunlite Recycling Industries Private Limited stands as a robust entity in the copper manufacturing sector, offering a comprehensive range of high-quality copper products. From their humble beginnings in 2012 to their current status as a private limited company, their focus has remained on quality, innovation, and sustainability. With a strong leadership team, advanced manufacturing capabilities, and a commitment to environmental stewardship, they are well-positioned to continue their growth trajectory and serve the evolving needs of the power generation, transmission, distribution, and electronics industries.

Objects of the Sunlite Recycling Industries Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objectives: i. Funding of capital expenditure towards the installation of new Plant & Machinery. ii. Repayment and/or pre-payment, in full or part, of certain borrowings availed by the company. iii. General Corporate Purpose.
DRHP of Sunlite Recycling Industries Limited IPO
RHP of Sunlite Recycling Industries Limited IPO

Sunlite Recycling Industries Limited IPO Details:

Open Date: Aug 12 2024
Close Date: Aug 14 2024
Total Shares: 2,880,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 30.24 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 100 - 105 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 20 2024

Promoters And Management:

Nitin Kumar Heda, is Promoter and Managing Director of the Company. He has been on the Board of Directors of the Company since incorporation. He holds a bachelor’s degree in commerce from University of Delhi. He has a work experience of more than 17 years in the field of copper manufacturing Industry. He has been instrumental in taking major policy decision of the Company. He is playing vital role in formulating business strategies and effective implementation of the same. He is responsible for the business development, Legal operations & Compliance and overall management of the business of the Company. Under his guidance, the Company has witnessed continuous growth. He drives the organization’s goals and visions with a keen eye on industry trends and business strategies. Prahladrai Ramdayal Heda, is Promoter and Chairman & Whole Time Director of the Company. He has been on the Board of Directors of the Company since incorporation. He has a work experience of more than 15 years in the field of copper manufacturing Industry. He is responsible for general business and administration functions in the Company. Khushboo Manishkumar Heda, is Promoter and Non-Executive Director of the Company. She has been on the Board of Directors of the Company since incorporation. She holds a Master’s degree in Master of Business Administration from Sikkim Manipal University, Gangtok, Sikkim in 2012. She has a work experience of 6 years in the field of copper manufacturing Industry. She is responsible for general business and administration functions in the Company.

Financials of Sunlite Recycling Industries Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 93,719 115,019 116,627
Other Income 72 21 28
Total Revenue 93,792 115,040 116,655
Cost of Material Consumed 90,291 110,098 110,513
Purchases of Stock-in-trade 693 1,553 1,934
Change in Work-In-Progress -35 -371 -653
Employees Benefit Expenses 156 229 250
Other Expenses 1,612 2,063 2,719
EBITDA 1,075 1,467 1,891
OPM (%) 1.15% 1.28% 1.62%
Depreciation & Amortisation 220 239 243
EBIT 855 1,228 1,648
Finance Cost 291 473 468
PBT 565 755 1,180
Tax 139 195 290
PAT 426 560 890
NPM (%) 0.45% 0.49% 0.76%
No.of Shares 108.8 108.8 108.8
EPS 3.91 5.14 8.18

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Sunlite Recycling Industries Limited 1,166 9 8.18 12.8 105 114
Rajnandini Metal Limited 1,212 15 0.55 23.4 12.9 356
Bhagyanagar India Limited 1,429 46 14.29 34.0 100 321
* All the data is as per FY24.

Recommendation on Sunlite Recycling Industries Limited IPO:

Review and Recommendation of Sunlite Recycling Industries by team IZ is 3/10. 1. Sunlite Recycling Industries Private Limited is a prominent player in the copper recycling industry, specializing in the manufacturing of copper rods, wires, earthing wires, earthing strips, conductors, and wire bars. 2. These products are made by recycling copper scrap, which retains excellent electrical and mechanical properties, making them ideal for applications in power generation, transmission, distribution, and electronics industries. 3. Product Portfolio The company started with a single product line—oxygen-free copper rods—but has since expanded its offerings. By 2015-16, the company had added copper strips to its product line, thanks to the installation of a copper strip machine imported from China. 4. Sunlite Recycling Industries acquired a Copper Continuous Casting and Rolling (CCR) machine, which significantly boosted its production capacity and revenue. 5. Competitive Landscape Sunlite Recycling Industries competes with both domestic and international manufacturers and suppliers of copper alloys. Some competitors have a stronger presence in certain geographic regions, but Sunlite distinguishes itself with its integrated, cost-effective operations and a strong emphasis on customer satisfaction and product reliability. Significant competitors in the organized segment include Rajnandini Metal Limited and Bhagyanagar India Limited. 6. The Revenue has Increased from Rs.937 Crores in FY22 to Rs.1,166 Crores in FY24. 7. The EBITDA has Increased from 11 Crores in FY22 to 19 Crores in FY24. 8. The PAT has Increased from 4 Crore in FY22 to 9 Crores in FY24. 9. As per FY24, CFO/EBITDA is 0.99, and EPS is 8.18, 10. Market Capitalization is 114 Crores and P/E is 12.8x based on FY24.

Lead Manager of Sunlite Recycling Industries Limited IPO:

  1. Hem Securities Limited

Registrar of Sunlite Recycling Industries Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Sunlite Recycling Industries Limited Survey No. 270A & Plot No. 1, Survey No. 267, Chhatha Mile, Dantali, Vaso, Kheda - 387350 Phone: +91-9265111757 Email: cs@sunliteindustries.com Website: http://www.sunliteindustries.com/

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