CMR Green, a leading manufacturer of aluminium alloy ingots, is gearing up for its IPO, aiming to attract high-risk investors with its robust market presence and growth potential. The company, which has been operational since 2005, has significantly increased its revenue share from aluminium products to 81.9% in the nine months leading to December 2025.
With 13 recycling facilities across India and an installed capacity of 6.2 lakh tonnes per annum as of March 31, 2026, CMR Green is a dominant player in the cast alloy segment of the automotive industry, holding an estimated 42-45% market share by volume in FY25. The recycled aluminium market in India is projected to grow substantially, reaching $9.2 billion by FY2030.
Financially, CMR Green has shown a revenue CAGR of 6.6%, reaching ₹6,666 crore, while net profit rose by 22% to ₹155 crore between FY23 and FY25. However, the company faced a net loss of ₹838 crore in FY24 due to a one-time goodwill write-off. The debt-to-equity ratio increased to 0.6 in FY25, reflecting the company's strategic investments.
Despite negative operating cash flow of ₹387.7 crore as of December 2025, attributed to rising raw material costs and facility expansions, CMR Green's valuation remains competitive. It demands a P/E multiple of 19 post-IPO, compared to higher multiples of its peers.
The company's strategic positioning in a growing market and its substantial market share make it an attractive option for investors looking for long-term gains. However, the financial challenges and market volatility pose risks that investors should consider.
Background
CMR Green has been a key player in the aluminium recycling industry since 2005, focusing on sustainable practices and innovation. Its market leadership in the automotive sector and the projected growth of the recycled aluminium market underscore its potential for long-term success.
As CMR Green prepares for its IPO, investors should watch for market reactions and the company's ability to manage its financial challenges effectively.
