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ICICI Securities initiates Buy on Jain Resource Recycling, targets ₹350

The brokerage expects copper to remain the key growth driver and models a 23% copper volume CAGR for FY26 to FY29E, even as the stock closed 0.3% lower on Sept. 9.

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Jain Resource Recycling’s shares edged down on Sept. 9, ending the day 0.3% lower at ₹295.7 on the BSE. Despite the slight dip, ICICI Securities said the stock’s growth outlook is unlikely to be derailed and pointed to a shift in the company’s business model toward higher-value metal products.

In a report, the brokerage initiated coverage with a Buy rating and set a target price of ₹350, implying nearly 25% upside. The view is tied to JRRL’s transition from a volume-led recycler to an integrated circular multi metals platform aimed at increasing value capture per tonne.

ICICI Securities said the company’s next phase of earnings depends on copper downstream integration, utilization improvements, and a structurally better product mix. It also noted that copper will remain the main driver of the growth trajectory, highlighting an embedded 23% volume CAGR for the copper division over FY26-29E, supported by ramp-up of existing capacity and contribution from the C&Y JV.

The broker also framed the evolving product mix as a way to scale while limiting directional exposure to commodity price moves. ICICI Securities cited nearly 65% capacity utilization in FY26 and said improvements in utilization and feedstock integration are expected to support earnings growth and sustainability over the next three financial years.

Latest closeCopper $6.776 ▲2.7%

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