4 Recycling stocks trading at a discount of up to 56% to keep on your radar

SYNOPSIS: Four recycling stocks are trading sharply below 52-week highs despite strong long-term sector tailwinds, as near-term earnings pressure, margin contraction, regulatory uncertainty, and valuation concerns weigh on investor sentiment.

India’s recycling sector is poised for robust long-term growth, supported by favourable government policies, rising waste generation, and increasing demand for sustainable raw materials. As per industry sources, the market is expected to grow from $0.89 billion in 2025 to $1.34 billion by 2030, clocking a CAGR of 8.53 percent. Growth is likely to be led by battery metals and plastics, driven by rapid EV adoption and expanding packaging requirements.

Strengthening this outlook, on 3rd September 2025, the Union Cabinet approved a Rs. 1,500 crore incentive scheme for critical mineral recycling under the National Critical Mineral Mission. The scheme aims to enhance near-term supply chain security by encouraging the formal recycling of key waste streams such as e-waste, spent lithium-ion batteries (LIBs), and other metal scrap, including catalytic converters from end-of-life vehicles.

Further, the Ministry of Mines issued detailed guidelines on 2nd October 2025, with the application process opening the same day. Estimates suggest India currently generates around 1.75 million tonnes of e-waste annually and nearly 60 kilotonnes of spent LIBs, with availability expected to rise sharply over the next 4-5 years. Additionally, customs duty exemptions on LIB scrap, announced in the Union Budget 2025-26, are likely to further ease imports and support the sector’s expansion. Listed below are some notable recycling stocks that are undergoing a severe correction and currently trading at steep discounts of up to 56 percent:

GRP Limited

With a market cap of Rs. 952 crores, shares of GRP were trading in the red at Rs. 1,785 on BSE, down by around 1 percent on Friday morning’s trading session. The stock has delivered negative returns of around 47 percent in the last one year, but has gained by just around 3 percent in the last month. Additionally, the stock is currently trading at a discount of nearly 47 percent from its 52-week high of Rs. 3,373, recorded on 9th January 2025.

On the financial front, GRP reported a net profit of Rs. 1.96 crores in Q2 FY26, a decline of around 22 percent from Rs. 2.51 crores in Q2 FY25, while the revenue from operations grew marginally by around 0.5 percent YoY from Rs. 131.65 crores to Rs. 132.36 crores, over the same period.

The company noted that US tariff-related pressures impacted around 5 percent of reclaim rubber volumes, affecting revenues from US-linked customers, including those in regions dependent on the US market. This was particularly evident in Thailand, where volumes declined by 31 percent, translating into an ~Rs. 6.2 crore quarterly revenue impact.

The slowdown also led to a 36 percent drop in margins from these affected markets, amounting to nearly Rs. 3.8 crore. As a result, overall export raw material margins contracted by 15 percent YoY, moderating the company’s growth momentum during the quarter.

GRP Limited is an integrated polymer recycling company, with operations spanning reclaim rubber, engineering plastics, polymer composite, custom die-forms, and repurposed polyolefins.

Nupur Recyclers Limited

With a market cap of Rs. 385.8 crores, shares of Nupur Recyclers were trading in the red at Rs. 55.86 on NSE, down by around 2 percent on Friday morning’s trading session.

The stock has delivered negative returns of over 43 percent in the last one year, and has fallen by more than 1 percent in the last month. Additionally, the stock is currently trading at a discount of more than 47 percent from its 52-week high of Rs. 106.49, recorded on 7th February 2025.

On the financial front, Nupur Recyclers reported a net profit of Rs. 4.33 crores in Q2 FY26, a decline of over 20 percent from Rs. 5.44 crores in Q2 FY25, while the revenue from operations also decreased marginally by around 5 percent YoY from Rs. 51.18 crores to Rs. 48.76 crores, over the same period.

Nupur Recyclers Limited is mainly engaged in the business in the import of ferrous and non-ferrous metals from across the globe and processing/trading the same on a pan-India basis.

Eco Recycling Limited

With a market cap of Rs. 911 crores, shares of Eco Recycling were trading in the green at Rs. 472 on BSE, up by around 2 percent on Friday morning’s trading session.

The stock has delivered negative returns of around 48 percent in the last one year, but has gained by nearly 9 percent in the last month. Additionally, the stock is currently trading at a discount of nearly 49 percent from its 52-week high of Rs. 925.8, recorded on 9th January 2025.

On the financial front, Eco Recycling reported a net profit of Rs. 5.6 crores in Q2 FY26, a decline of over 31 percent from Rs. 8.18 crores in Q2 FY25, while the revenue from operations grew marginally by around 12 percent YoY from Rs. 12.87 crores to Rs. 14.42 crores, over the same period.

The stock is currently trading at a P/E ratio of 47, significantly higher than the industry average of 20.5. This extreme premium, more than two times the sector norm, marks the stock as overvalued.

Eco Recycling Limited is primarily involved in e-waste collection, disposal and recycling business that offers comprehensive services for recycling of electrical electronic equipment (EEE) waste.

Ganesha Ecosphere Limited

With a market cap of Rs. 2,250.3 crores, shares of Ganesha Ecosphere are trading in the green at Rs. 839.8 on BSE, up by over 1 percent on Friday’s morning trading session.

The stock has delivered negative returns of over 54 percent in the last one year, and has fallen by around 6 percent in the last month. Additionally, the stock is currently trading at a discount of nearly 56 percent from its 52-week high of Rs. 1,907.05 on BSE, recorded on 3rd February 2025.

On the financial front, the company reported a net loss of Rs. 0.5 crores in Q2 FY26, from a profit of Rs. 27.11 crores in Q2 FY25, while the revenue from operations also fell by around 6 percent YoY from Rs. 386.8 crores to Rs. 363.38 crores, over the same period. Management attributed the weaker performance largely to higher raw material costs, which weighed on margins during the quarter.

Meanwhile, uncertainty surrounding the draft notification issued by MoEF on 3rd June 2025 has disrupted demand and sales of rPET granules, keeping volumes below expectations. However, the company noted that it has received commitments from existing customers, with deliveries expected to resume from January 2026 onwards.

Ganesha Ecosphere Limited, one of the leading PET Waste recycling companies in India, is mainly engaged in the business of manufacturing Recycled Polyester Staple Fibre (RPSF), spun yarn and dyed textured yarn, and mobilises ~450 tons of PET bottle waste every day.

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