Shares of India-based Baheti Recycling Industries Limited, a micro-cap company specialising in recycling aluminium scrap into various aluminium alloys such as ingots, cubes, shots, notch bars, and de-ox alloys, surged by up to 9.3 per cent on Monday following the announcement of a Memorandum of Understanding (MoU) with Minda Corporation Ltd.
The company’s stock reached an intraday high of INR 639.55 per share ($7.67 USD), compared to its previous closing price of INR 585.00, pushing its market capitalisation to INR 658.40 crores ($79.02 million). Under this agreement, Baheti will supply 4,368 metric tonnes of aluminium alloy ingots during the financial year 2025–26, with the order valued at approximately INR 121 crore ($14.52 million).
This collaboration represents a significant milestone in strengthening Baheti’s ties with leading OEMs and underscores the confidence in the company’s product quality and reliable delivery performance.
During the second half of FY25, the company reported a 19.7 per cent increase in revenue, rising from INR223 crore ($26.76 million) to INR267 crore ($32.04 million) during the same time period. Net profit jumped from INR 4 crore to INR 11 crore, reflecting strong operational performance.
The company currently trades at a P/E ratio of 33.68, which is lower than the industry average of 41.94, suggesting potential undervaluation. Additionally, a low PEG ratio of 0.22 reinforces this outlook. With promoters holding over 65 per cent stake, there is a clear indication of strong confidence in the company’s growth trajectory.
The company operates three rotary facilities and 15 furnaces, with a total installed capacity of 29,160 MTPA, currently running at approximately 64 per cent utilisation. Its operations span across 32,890 square yards, including both active and idle space, providing room for future expansion.
The workforce comprises 450 employees, supported by over 200 contractual workers. Additionally, a new Tilting Rotary Furnace (TRF) unit has been commissioned, with another planned for implementation by FY26, further enhancing the company’s production capabilities.
Image Source: Baheti Recycling Industries / Linkedln
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