Sunlite Recycling Industries Ltd, a leading manufacturer of copper products, has announced a strategic forward integration and expansion into new product lines. The company’s stock price has shown positive movement following this news.

Stock price movement

Sunlite Recycling Industries share price is up by 2.32% as of September 18, 2024. This uptick follows the company’s announcement of its expansion plans and new product launch.

What Happened

Sunlite Recycling Industries Limited has filed with NSE, announcing a strategic forward integration and expansion. The company is set to launch new products: Copper Busbar and Annealed Tinned Coated Copper. This move signals the company’s commitment to diversifying its product portfolio and strengthening its market position.

Recent Developments 

Sunlite Recycling Industries made a stellar stock market debut earlier this year. The stock was listed at ₹199.50 per share on NSE SME, a premium of 90% to the issue price of ₹105. This impressive listing surpassed Street expectations, as the shares were trading at a 75% premium in the grey market prior to listing.

The company’s Initial Public Offering (IPO) saw strong demand, being subscribed to more than 280 times. The IPO, which opened on August 12 and closed on August 14, raised ₹30.24 crore through a fresh issue of 28.8 lakh equity shares.

Sunlite Recycling Industries plans to use the IPO proceeds to fund capital expenditure for new Plant & Machinery installation, repay certain borrowings, and for general corporate purposes.

Financial Performance

For the fiscal year ending March 2024, Sunlite Recycling Industries reported revenue of Rs.1,166 crore, marking a 1.39% increase from Rs.1,150 crore in the previous year. However, Profit After Tax (PAT) decreased significantly by 90.07% to Rs.11.12 crore in March 2024 from Rs.112 crore in 2023.

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Company Profile

Founded in 2012, Sunlite Recycling Industries specialises in manufacturing copper rods, wires, conductors, and earthing materials from recycled copper scrap. The company’s product portfolio includes copper rods & wires, copper earthing wires, copper earthing strips, copper conductors, and copper wire bars.

Sunlite Recycling Industries operates from its manufacturing facility in Kheda, Gujarat, which spans 12,152 square meters and is equipped with over 20 machines. The company’s production capacity includes 16,580 MT of Copper Rods (87% utilization), 1900 MT of Copper Wire (38% utilization), and 720 MT of Copper Strips (43.5% utilization).

The company’s revenue is geographically diverse, with Gujarat accounting for 46%, followed by Dadra and Nagar Haveli (21.5%), Maharashtra (13%), and Telangana (9%). 

As Sunlite Recycling Industries continues to expand its product line and strengthen its market position, investors will be closely watching its performance in the coming quarters.

Written By Fazal Ul Vahab

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