Syniopsis: A metal recycling company has witnessed its stock give a compounded return of 93 percent in the past 3 year. Copper has surged by 47 percent in the last one year, and the company in context has a targeted capex expansion of Rs 110 Cr in the coming years.
A small cap stock in the metallic and non-metallic recycling industry which also happens to be India’s largest secondary Lead manufacturer in Lead Alloys, has currently catched the eyes of several investors, mainly due to its expansion plans in the copper recycling space for the coming years.
Copper as a metal has witnessed a 47 percent growth in one year, with the metal’s price in India standing at Rs 1380 per kilogram. Could this small cap company in context be utilizing this surge as a future business opportunity to the best, and if so how ?
With a market cap of Rs 3824 Cr, Pondy Oxides & Chemicals Ltd is the company in context and the stock has given a compounded return of 93 percent in the last three years.
What does the company do?
Pondy Oxides and Chemicals Ltd, established in 1995, produces lead metal, alloys, and other non-ferrous metals. The company is one of India’s largest secondary lead manufacturers and a pioneer in producing lead metal, lead alloys, and other non‑ferrous metals through metal recycling and smelting processes.
It converts various forms of scrap- especially lead battery scrap- into high‑quality metal products, contributing significantly to India’s circular economy and the non‑ferrous metal industry. POCL’s core product range includes lead and lead alloys like calcium, antimony, tin, and master alloys, apart from this the company is also into aluminium, zinc, zinc oxide and copper products .
It also produces plastic additives and has broadened its portfolio to include materials used in automotive, electronics, chemical manufacturing, and other industrial applications. The company’s client list includes – TVS, Nilkamal, Panasonic, SAIL and TATA batteries.
What makes it different from others in its Industry?
Unlike some businesses in this Industry space, Pondy Oxides and Chemicals Ltd has been in the copper products segment for a while, and is also planning to expand its copper segment in the coming years. The company as of now is engaged in the supply of Clove, Cobra, Mill Berry, Grease Mill Berry, and Tin Mill Berry, which are widely used in copper wire manufacturing and other copper-based applications.
POCL It imports 100 percent of its copper raw materials and is transitioning from a lead-dominant recycler to a multi-metal powerhouse by doubling its copper capacity to 12,000 MTPA in 2026, with a clear roadmap to reach 24,000 MTPA in value-added products like foils and coils by FY27.
As of the latest quarterly result the company is targeting industry applications like copper wires apart from other copper applications. The current capacity serves 81 percent to domestic markets while the rest 19 percent goes to the international one as the company has established a strong international footprint and a diversified global customer base, strengthening its position in the copper recycling and metals supply chain.
Expansion Plans
In the latest conference call, the company has been focusing on high-demand items such as copper coils and copper foils, which is in the company’s plan for expansion in the coming years. This move represents a significant step in diversifying the company’s portfolio beyond its traditional lead and alloy operations, and apart from this the company is also expecting to get a higher margin from the current copper product line items.
We can tell that the company is finding its copper business to be more lucrative in the coming years by offering better profit margins and stronger revenue potential, this is due to the rising demand in sectors like electronics, electrical equipment, and renewable energy. The company has already planned a Rs 35 Crore capex in this segment for H2FY26 with an additional capex of 60 Crore in FY27.
Moreover in the coming years the company expects its copper space to make a Rs 110 Crore. Overall, the company is expecting its volumes to grow by 15 percent by 2030, while also expecting a CAGR growth of 20 percent in its revenue.
With the company steadily increasing its production capacity and optimizing its manufacturing processes, the benefits of this expansion are expected to materialize in the first half of FY27, contributing positively to both top-line growth and margins, which would reflect on the overall profitability.
This strategic foray into copper not only enhances Pondy Oxides’ revenue streams but also strengthens its position as a key player in the non-ferrous metals market, reflecting a forward-looking approach that aligns with evolving industrial trends.
The Bottom Line
With its well-established presence in lead and alloy production and its strategic expansion plans into high-margin copper products like coils and foils, Pondy Oxides and Chemicals Ltd is positioning itself for sustained growth and profitability. The company’s focus on diversification and capacity expansion in the emerging industrial trends is expected to strengthen its market position and deliver visible results in the near term, and particularly in the first half of FY27 as stated by the company in the latest concalls.
Specifically with copper, unlike other companies in its industry, the company has been trying to penetrate into the copper segment deeper, while currently it is still in its plain recycling phase but as the company extends itself into copper foils and coils, it can expect its margins to increase and could witness value creation and leadership in the copper recycling space.
While copper is the immediate growth engine, the company has set a bold Target 2030 vision, aiming for a 20 percent revenue CAGR and a diversification into Lithium-Ion battery recycling through a strategic partnership with ACE Green Recycling. With a newly commissioned lead plant in December 2025 and a massive 123 acre land bank in Mundra ready for future expansion, evolving into a full-scale ‘Urban Miner’ for the green energy era.
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