Are there any specific guidlines that mention electronic items must be recycled within India?. Usually companies look for China for dismatling as their scale is much higher than other companies. they recycle there and import recycled products from there. I am very new to this space. trying to get the knowledge.
Compare it with Gem Enviro Management Ltd 1/5th of its size in terms of capital base and feel the difference.
Eco Recycling has margins that are way higher than those of Namo eWaste. Both companies have almost similar offerings. Unitll FY 24, Namo did marginally lower utilization of the capacity.
Namo eWaste did a turnover of 100 crs in FY24 with almost similar capacity utilization (a bit lower) but managed to clock EBITDA margins of only 11% whereas Eco Reco did 28 crs of sales with 60% EBITDA margins. I want to understand, how they are different.
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Of late, i am seeing the company is disclosing news articles related to the industry and the opportunities ahead. If you google, one would find many such articles in the public domain. Does that mean, company is required to disclose them as a press release?? I fail to understand why the management is engaged in such stunts. Two such recent examples are below.
chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.bseindia.com/xml-data/corpfiling/AttachLive/d499df86-127c-4bbe-8b09-1707846ea2c8.pdf
chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.bseindia.com/xml-data/corpfiling/AttachHis/6b26ad5a-8276-4383-b8bd-9ea8fec2666d.pdf
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Companies will generally engage in such activities when the picture is rosy. I would not be surprised if they go for a QIP/Pref
In itself its not a red flag but certainly dont get swayed by this
Sealmatic is another business that does this all the time. They want to create a hype about the business for various reasons. It could be fund raise, keep investors interested in the company if nothing exciting has happened in the company for a while etcâŚ
While it should not be construed in a negative way, I like managements that speak less and deliver more. As long as the numbers are good, these things donât matter.
Thereâs a proverb Fake it untill you make it.
Since I donât see much progress or activities in this company so company might have released something that makes people think of their work contribution or involvement in the industrial activities. As someone suggested they may come up with QIP or atleast increase their shareholder to a minimum so that it can appear in many screens as promoters increased their share 
. Poor investors if they canât understand the math behind it
Could you elaborate on not seeing much progress since I am invested very eager to know.
If you go through their con call they mention
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using a higher value input materials so something like a fridge or a tv wonât have as many precious metals in them as a phone or a laptop hence what they focus on is to use more of these laptops and mobile phones so their capacity usage is low but their output is higher.
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they say that they bargain for a fair price for raw materials
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sale price of epr credits - epr credits range from 11 rupees to 140 rupees per kilo as per my knowledge and the kind of material you recycle effects your epr sale price.
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International networks they are a part of some international network which allows them to get orders from abroad
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they are also into contract recycling so if someone from abroad gives them an order they contract it to someone in the same country.
But here are a few of my doubts -
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Why doesnât every company in the sector follow the same strategy as them for using a good mix of raw materials
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This business is without any entry barriers except for maybe manufacturing so how are they able to enjoy a 60% margin
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For epr credits how does it work , like do companies first give them money to recycle and pay again for epr credits or do these guys just keep on recycling stuff and sell epr credits.
Ps - Someone with an antithesis more than welcome I need antithesis to stay objective.
Disc : Invested
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@Prakhar11 Here is the antithesis which i raised sometime back.
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âš500 Cr fund raise via QIP
What is going on, does anyone have any insights?
I wonder why they need the fund now for? The capacity is already over done and the promoter told that they are focusing on quality over quantity. Not sure what the plan here is?
Itâs possible they want to forward integrate in to smelting and black mass recycling. The scale of this QIP dwarfs their gross block which makes me believe they will go for a bigger capex
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Makes sense
They are also setting up a 6000mtpa lithium ion recycling plant
Which as per my estimate would require âš300 Cr capex approx.
All though mgmt is yet to give numbers regarding the same
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Makes sense
They are also setting up a 6000mtpa lithium ion recycling plant
Which as per my estimate would require âš300 Cr capex approx
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I sent a few mails after poor results and no response so sent a stinker, issue is how to turst promoters and companies who vanish.
From: Rajesh Singh rajeshfc@gmail.com
Date: Wed, 12 Feb 2025 at 09:26
Subject: Re: Looking forward to investor call
To: B K Soni bksoni@ecoreco.com, info@ecoreco.com
Companies like ecorecycling should be avoided like plague, when results were good, mgt was gungho , investor call, conferences, fund raising, current poor quarter and all vanish, no response to mails also as what is plan, con call , just vanish
On Tue, 11 Feb 2025 at 15:27, Rajesh Singh <rajeshfc@gmail.com> wrote:
Dear sir,
Hope to hear from you soon.
Regards
Rajesh
On Sun, 9 Feb, 2025, 4:14 pm Rajesh Singh, <rajeshfc@gmail.com> wrote:
Dear Mr. Soni,
Looking forward to investor concall for hear plans for future.
Forwarding mail for your kind attention too.
Regards
Rajesh Kumar Singh
---------- Forwarded message ---------
From: Rajesh Singh <rajeshfc@gmail.com>
Date: Sun, 9 Feb, 2025, 7:34 am
Subject: Looking forward to investor call
To: <info@ecoreco.com>
Dear Sir,
Post quarter three FY 25=result which is below average, it would be good if management can share plans to all investors so that guidance of 300 crore plus which was given on topline by next year , company can come closer to that.
looking forward to hear from you.
regards
Rajesh Kumar Singh
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I tried writing a few emails too, but no response from the management.
This is not good governance at all and gives very shady signs
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I am little bit confused. Company has said that they have completed investment of Rs 50 cr for increasing capacity upto 25,200 in FY24 concall. But in FY 24, their total PPE is only 57 cr which is 18 cr more than FY23. So, if they have invested why PPE not increased by 50 cr. Can any one clarify ?
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