CMR Green Technologies Limited

CMR Green Technologies Limited is the leading non-ferrous metal recycler in terms of installed capacity as of March 31, 2025, and holds the highest market share by revenue in the domestic Indian secondary aluminium market for Fiscal 2025. The company is primarily engaged in the manufacturing and selling of aluminium-based die-cast alloys and zinc alloys, alongside the segregation, recycling, and sale of other metal scraps such as stainless steel, copper, and brass. It acts as a critical enabler of the decarbonization imperative within India's industrial sector and holds an approximate 42-45% volume market share in the cast alloy segment catering to the automotive industry. Operating within a circular economy framework, the company procures raw scrap globally from around 198 suppliers spanning 73 countries. A significant competitive moat in its business model is its ability to supply liquid (molten) aluminium directly to customers. This process eliminates the need for remelting solid ingots at the customer's facility, heavily reducing energy consumption, processing costs, and carbon emissions while ensuring high customer retention. The company also leverages strategic joint ventures with prominent Japanese corporations, such as Toyota Tsusho Corporation and Nikkei MC Aluminium, to gain technological expertise and secure a low-carbon billet supply chain. The company caters predominantly to the automotive industry. Its client base features major Original Equipment Manufacturers (OEMs) and Tier-1 component makers, including Maruti Suzuki India Limited, Honda Cars India Limited, Bajaj Auto Limited, Hero MotoCorp Limited, Royal Enfield Motors Limited, Endurance Technologies Limited, Rockman Industries Limited, and Craftsman Automation Limited. While the company benefits from strong, long-term relationships (some spanning over 19 years), it faces moderate concentration risk, with its top 10 customers accounting for 40.66% of its total revenue from operations during the nine months ended December 31, 2025. CMR Green conducts its recycling operations through a highly integrated and centralized network of 13 manufacturing facilities strategically located across major auto clusters in India. These state-of-the-art facilities are spread across several states, including Haryana (Tatarpur, Manesar, Bawal), Gujarat (Vanod, Halol), Tamil Nadu (Chennai, Vallam), Uttarakhand (Haridwar), Maharashtra (Pune), Andhra Pradesh (Tirupati), Odisha (Sambalpur), and Rajasthan (Bhiwadi). The company's total installed manufacturing capacity stands at an impressive 615,150 MTPA (Metric Tonnes Per Annum) for Fiscal 2026. The company maintains strong capacity utilization levels, which stood at 67.67% for the nine-month period ending December 31, 2025 (translating to actual production of 307,461.82 MT). Historically, the overall capacity utilization was 64.92% in FY25 and 66.33% in FY24. As per financial performance, CMR Green Technologies Limited has posted total income/net profits of Rs 5,889.90 Cr / Rs 104.51 Cr (FY23), Rs 5,968.44 Cr / Rs (838.56) Cr (FY24), Rs 6,696.66 Cr / 155.04 Cr (FY25) and Rs 6,291 Cr / 162.39 Cr (upto Q3 FY26). So as per previous financials data, company has shown steady growth, but debt increased three times from Rs 368.18 Cr in FY23 to Rs 1,303.21 Cr as of 9M FY26. Net Cash from Operating Activities collapsed from a positive Rs 610.89 Crores in FY23 to a negative Rs (92.00) Crores in FY25, and worsened to a bleeding negative Rs (387.70) Crores in 9M FY26. The company is recording accounting profits but burning immense cash. Company has an average EPS of Rs (8.79) and average RoNW of (71.73)% for last three fiscals. Issue is priced at a P/BV of 7.08 as per NAV of Rs 27.12/- as on 31.12.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around (5.02), 27.13 and 19.42 respectively. As per RHP, comparison between listed peers are shown in the above market. On BRLM's front, Equirus Capital Limited, ICICI Securities Limited, and Motilal Oswal Investment Advisors Limited are associated with this IPO, and has handled 86 IPOs in last three fiscal years. ( As on 29.05.26 ) As per financials, CMR Green Technologies Limited has shown average results, RoNW is 31.08% and P/E is (5.02), 27.13 and 19.42 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced, but negative cash flow, increase in debt and inventory are indicating risks. This IPO purely looks exit strategy for existing investors and no benefit to the company. Company is the leading non-ferrous metal recycler in terms of installed capacity, which is highly competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Mohan Agarwal
• 2  Pratibha Agarwal
• 3 Akshay Agarwal
• 4 Raghav Agarwal