Sunlite Recycling Industries Ltd IPO

Strong portfolio and diverse range of copper products.

Stringent quality control mechanism ensuring standardized product quality.

Revenue from multiple geographies in India.

Experienced Senior Management.

The company production costs are vulnerable to fluctuations in raw material prices, especially Copper scrap. Currently, the company havent secured any long-term supply agreements for the raw materials its need.

The company is primarily dependent upon few key suppliers within limited geographical location for procurement of raw materials. Any disruption in the supply of these raw materials due to fluctuations in the prices could have a material adverse effect on its business operations and financial conditions.

The company generates its major portion of sales from its operations in certain geographical regions and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

The company has very short span of operating history as company.

Its top 10 and top 5 customers contribute majority of the company revenues from operations for the period ended December 31, 2023 and for the year ended March 31, 2023, 2022 and 2021. Any loss of business from one or more of them may adversely affect its revenues and profitability.

Copper wires can be substituted by aluminium wires due to the lower cost and weight of metal which may pose a threat to the core business of the Company impacting the overall profitability.

Majority of its revenue is dependent on single business segment i.e. copper rods. An inability to anticipate or adapt to evolving upgradation of products or inability to ensure product quality or reduction in the demand of such products may adversely impact its revenue from operations and growth prospects.

The company is a high volume-low margin business. Any disruption in its turnover or failures to regularly grow the same may have a material adverse effect on its business, results of operations and financial condition.

The company does not own the registered office & manufacturing unit and marketing office from which the company carry out its business activities. In case of nonrenewal of rent agreements or dispute in relation to use of the said premise, the companys business and results of operations can be adversely affected.

Its historical performance is not indicative of the company future growth or financial results and its may not be able to sustain the company historical growth rates.