Renowned investor Ashish Kacholia has seen a remarkable return on his investment in Jain Resource Recycling, with gains of approximately 214% over an eight-month period. This impressive performance highlights the potential for significant returns in the Indian stock market for astute investors.

Investment Details and Returns

Kacholia's investment strategy included capitalizing on a 1:5 stock split, which effectively increased his shareholding to 39,16,875 shares at an adjusted cost of Rs 126.75 per share.

Jain Resource Recycling's Market Performance

Jain Resource Recycling made its market debut on October 1, listing at a 14% premium to its issue price of Rs 232.00. The stock's performance has been noteworthy:

• Closing price on debut day: Rs 318.00
• Price as of October 24: ~Rs 400.00

Strong Quarterly Results

The stock's recent momentum can be attributed to the company's robust quarterly performance:

Operating margins also saw improvement, reaching 7.6%.

Company Overview

Jain Resource Recycling, based in Chennai, specializes in recycling non-ferrous metals including lead, copper, and aluminium. The company has expanded its operations with a gold refining subsidiary in the UAE, diversifying its business portfolio.

Kacholia's Portfolio Adjustments

In addition to his investment in Jain Resource Recycling, Ashish Kacholia made several changes to his portfolio during the September quarter:

• Added five new positions
• Reduced stakes in:
  • Dhabriya Polywood
  • Xpro India
  • Brand Concepts

These moves demonstrate Kacholia's active management approach and his ability to identify potential market opportunities.

The significant returns on Kacholia's investment in Jain Resource Recycling underscore the potential for substantial gains in the Indian stock market. However, investors should note that such high returns are not typical and often come with considerable risk. It's crucial to conduct thorough research and consider one's risk tolerance before making investment decisions.

Jain Resource Recycling Limited (JRRL) has reported robust financial performance for the second quarter, coupled with a strategic joint venture announcement that positions the company for further growth in the recycling sector.

Q2 Financial Highlights

JRRL's consolidated revenue from operations surged by 52% year-over-year to Rs 2,113.7 crore, compared to Rs 1,392.1 crore in the same quarter last year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed an impressive growth of 82%, reaching Rs 160 crore, up from Rs 87.8 crore in the corresponding quarter. The EBITDA margin improved by 127 basis points to 7.6%.

The company's net profit after tax from continuing operations witnessed a substantial increase of 78%, climbing to Rs 99.2 crore from Rs 55.8 crore in the corresponding quarter of the previous year.

Segment-wise Performance

JRRL's diverse product portfolio contributed to its strong performance:

The Aluminium and Alloys segment showed the highest growth rate, with revenue more than doubling compared to the same quarter last year.

H1 Performance

For the first half of the fiscal year, JRRL reported:

• Consolidated Revenue: Rs 3,663 crore (27% YoY growth)
• EBITDA: Rs 250.1 crore (37% YoY growth)
• PAT: Rs 155.1 crore (38% YoY growth)

Strategic Joint Venture Announcement

JRRL announced a joint venture agreement with C&Y Group Investments, Inc., a major North American scrap metal exporter. The joint venture will establish a recycling and manufacturing facility in Ahmedabad, Gujarat, focusing on various scrap materials including cables, motors, and copper scrap.

Key points of the joint venture:

• JRRL will hold a 52% stake in the new entity
• C&Y Group will hold 45%, with 3% reserved for employee sweat equity
• The joint venture company will become a subsidiary of JRRL
• C&Y Group will supply a guaranteed annual quantity of scrap materials at competitive prices

This strategic partnership is expected to enhance JRRL's value chain within India and drive long-term growth in the recycling sector.

Market Response

Following the announcement of the Q2 results and the joint venture, JRRL's stock price jumped 9% to a new 52-week high. The stock has gained 51% from its IPO price of Rs 232 per share since listing on October 1, 2025.

Management Commentary

Kamlesh Jain, Chairman & Managing Director of JRRL, expressed satisfaction with the company's performance, stating, "Our continued focus on ESG excellence, innovation, and operational efficiency serves as the foundation of our growth strategy — ensuring we deliver lasting value to our stakeholders and contribute responsibly to a sustainable future."

The company's strategic moves, including the recent joint venture, align with its vision of fostering a circular and sustainable future in the recycling industry.

JRRL plans to expand its capacities and explore new growth avenues, including potential diversification into tyre, e-waste, and solar panel recycling, positioning itself to capitalize on the growing demand for sustainable recycling solutions in India and beyond.