Namo eWaste Management Limited — Investor Meet, 18-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance**: For H1 FY25, Namo eWaste Management Limited reported a significant revenue increase of 88.4% to INR 67.00 Cr, with EBITDA climbing 42.5% to INR 6.81 Cr and a margin of 10.16%. The net profit surging by 95.8% to INR 5.34 Cr resulted in an EPS of INR 2.34, showcasing robust growth in both top and bottom lines.

2. **Future Outlook and Growth Drivers**: Management expressed optimism about growth driven by expanding recycling capacities and strategic investments, particularly in lithium-ion battery recycling, expected to boost efficiency and margins moving forward.

3. **Order Book and Operational Updates**: Namo operates three recycling plants with a combined capacity of 30,500 metric tons annually, with plans to increase to over 56,000 metric tons by FY26. Current capacity utilization stands at 35%, with expectations of reaching full utilization within 18-24 months.

4. **Analyst Q&A Insights (Detailed)**:

- **Revenue and Profitability**: Analysts sought insight into profit growth; management attributed margins to favorable EPR rates and operational efficiencies.

- **Market Position**: There were inquiries about competition, particularly from Attero, to which management highlighted their decentralized model for broader market coverage.

- **Operational Risks**: Analysts queried risks such as collection efficiency, which management acknowledged could improve with more collection centers.

- **Capex Plans**: Plans for a total capex of about INR 27 Cr for new plants were discussed, funded partly from IPO proceeds.

- **Strategic Priorities**: Management emphasized a focus on refurbishment and advanced recycling technologies, noting rising demand for lithium-ion battery solutions.

5. **Market or Regulatory Updates**: The call noted the evolving regulatory landscape, particularly concerning EPR, with expectations for improved market dynamics as regulations solidify.

6. **Strategic Focus Areas**: Themes of innovation in recycling technology and expansion into battery management were evident, aligning with the growing need for sustainable e-waste solutions.

7. **Investor Insight**: Overall, the financial performance coupled with strong growth initiatives and strategic positioning in a burgeoning market present an attractive opportunity—a ‘buy’ stance seems prudent, keeping in mind potential operational challenges and market dynamics ahead.