Jain Resource Recycling Ltd.
NSE: JAINRECJain Resource Recycling Ltd.: A 30-second snapshot
Jain Irrigation Recycling (JAINREC), classified in the Metals sector, trades at ₹566.15 with a trailing PE of 56.3 and a forward PE of 33.1, reflecting a significant premium to peers (sector median PE near 22). Over the past 3 months the stock has advanced 40.52%, RSI stands at 74.33 (overbought territory), and the 52-week high of approximately ₹594 is 4.68% above the current price. The balance sheet carries a debt-to-equity ratio of 94.85 with a rising debt trend, while the profit margin is 3.81%.
P/E
56.3
Forward P/E
33.1
ROE
—
Debt / Equity
94.85
Profit Margin
+3.8%
Div. Yield
—
5Y ROE > 15%
4/5
5Y FCF > 0
2/5
Quality
47/100
Recent context
- ·No news headlines were captured in this analysis cycle (0 of 0), leaving the specific catalysts behind the 40.52% 3-month price advance unverifiable from publicly available sources at the time of this run.
- ·The stock is 4.68% below its 52-week high of approximately ₹594, placing near-term resistance at ₹593.95 — the only resistance level identified in technical data.
- ·Technical support levels are clustered between ₹381.80 and ₹400.80, representing a potential drawdown range of 29–33% from the current price if the recent advance were to retrace fully.
Strengths
- +5-year revenue growth of 55.8% and 5-year earnings growth of 123.2% indicate a significant scale-up in both top and bottom-line over the measurement window.
- +Forward PE of 33.1 vs trailing PE of 56.3 implies analyst consensus models a material improvement in earnings per share over the next 12 months — a compression of roughly 41%.
- +ROE exceeded 15% in 4 of the available fiscal years, reflecting periods of meaningful return on shareholders capital despite elevated leverage.
- +Consistency score of 73 (out of 100) suggests earnings have been relatively stable across the measurement horizon relative to peer-level expectations.
Weaknesses
- −D/E of 94.85 is the highest leverage profile in the peer group and the debt trend is rising, placing material pressure on interest coverage in a thin-margin business.
- −FCF was positive in only 2 of the available fiscal years, meaning earnings growth has not been backed by commensurate cash generation — a gap that compounds the debt risk.
- −PE of 56.3 is the highest in the 6-stock peer group (next highest: ADANIENT at 36.9, JSWSTEEL at 14.0), implying the market already prices in substantial improvement; any earnings shortfall would compress the multiple sharply.
- −Quality score of 42 ranks 3rd of 6 peers, trailing JSWSTEEL (48) and TATASTEEL (44), suggesting no clear structural differentiation in capital efficiency relative to larger sector players.
Open questions
- ?Does the 5-year earnings growth of 123.2% reflect a structural change in the business model, or is it primarily a recovery from a low-base period following earlier operational distress?
- ?How does the company service a D/E of 94.85 on a 3.81% profit margin, and what does the interest-coverage ratio look like across the most recent 2–3 fiscal years?
- ?Is the forward PE compression from 56.3 to 33.1 underpinned by specific contracted revenue or capacity expansion milestones, or does it rely on macro assumptions around commodity pricing?
- ?Given that FCF was positive in only 2 of the available years, what is the primary funding mechanism for ongoing capital expenditure — equity dilution, further debt, or internal accruals?
Peer comparison: Metals
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| JAINREC | Jain Resource Recycling Ltd.You're viewing | 56.3 | — | 42 |
| Industry avg | across 5 peers | 23.8 | +20.5% | 38 |
| JSWSTEEL | JSW Steel Ltd. | 14.0 | +27.3% | 48 |
| TATASTEEL | Tata Steel Ltd. | 29.5 | — | 44 |
| HINDALCO | Hindalco Industries Ltd. | 14.8 | — | 38 |
| ADANIENT | Adani Enterprises Ltd. | 36.9 | +13.7% | 22 |
| DUMMYVEDL1 | Dummy Vedanta Ltd. 1 | — | — | — |
Technical state
Current price
₹566.15
SMA 50
₹450.43
SMA 200
—
RSI (14)
74.3 (overbought)
From 52w high
-4.7%
1Y return
—
3M return
+40.5%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 94.85 is extremely elevated for a metals/manufacturing company, with the debt trend marked rising — indicating increasing leverage pressure on an already thin capital structure.
- highFree cash flow was positive in only 2 of the available fiscal years, signalling the business has generated limited internal cash despite strong reported earnings growth over the same period.
- mediumRSI at 74.33 is in overbought territory; price is up 40.52% over 3 months and only 4.68% below the 52-week high, representing a sharp recent advance without a confirmed long-run trend anchor (SMA200 unavailable due to only 150 bars of data).
- mediumProfit margin of 3.81% is thin; quality score of 42 ranks 3rd of 6 peers in the Metals sector, trailing JSWSTEEL (48) and TATASTEEL (44), while PE of 56.3 is the highest in the peer group vs sector median near 22.
- lowTechnical history covers only 150 bars (below the 200-bar threshold), making SMA200 and 1-year price return unavailable. Analyst coverage comprises just 2 analysts with no consensus rating. News returned 0 headlines, leaving recent event context fully blind.
Cross-section contradictions
- 5-year earnings growth of 123.2% and revenue growth of 55.8% coexist with FCF positive in only 2 of the available years — income-statement growth has not translated into consistent free cash generation.
- Price is up 40.52% over 3 months and sits 4.68% below the 52-week high, yet the balance sheet carries D/E of 94.85 with a rising debt trend — near-term price momentum and balance-sheet stress diverge sharply.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days