CMR Green
IPO Size: Rs. 631 cr, entirely Offer for sale (OFS)
- Rs. 507 cr by PE investor AIF Capital (Global Scrap Processors Ltd.) reducing its 12-year-old stake from 13% to 1%
- Rs. 124 cr by the promoter (87% to drop to 84% post IPO)
Price band: Rs.182-192 per share
M cap: Rs. 4,206 cr, implying 15% dilution
IPO Date: Wed 3rd Jun to Fri 5th Jun 2026, Listing Wed 10th Jun 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Largest Aluminium Recycler
CMR Green is a Faridabad, Haryana based non-ferrous metal recycler, having 13 plants, pan India, with 6.15 lakh MTPA installed capacity, utilized 68%. This comprises 4.7 lakh MTA for aluminium recycling, where company enjoys 10-12% domestic market share, and balance 1.45 lakh MTPA for recycling zinc, stainless steel and lead.
2nd Attempt at IPO
Earlier known as Century Metal Recycler, company had first filed for IPO in 2021.
It is highly dependent on automobile industry, with 83% of Rs. 6,300 cr revenue in 9MFY26 accounted for by this single sector, up from 76% in FY23. Automobile industry being cyclical, increases risk for CMR Green. While it has set up can recycling plant and billets, their capacities are relatively quite small.
Margins Lower than Peers
Between FY23-25, company’s production volume grew at 8% CAGR, with revenue rising at 7% CAGR to Rs. 6,666 cr. EBITDA stood at Rs. 299 cr, leading to 4.5% EBITDA margin. Since FY19 and FY20’s ~8%, EBITDA margin has now reduced to 4-5%. This is lower than other listed non-ferrous recycling companies, such as Jain Resource (6%), Pondy Oxides (7%), Gravita (10%).
9MFY26 revenue stood at Rs. 6,276 cr with EBITDA of Rs. 321 cr, or 5.1% margin. PAT was at Rs. 162 cr, implying just 2.6% net margin. Even RoCE of 12% and similar RoE is not exciting. EPS for 9MFY26 stood at Rs. 6.76, up from FY25’s Rs. 6.5.
Priced at Discount to Peers
M cap of Rs. 4,200 cr and enterprise value of Rs. 5,500 cr lead to a PE multiple of 19x, on FY27E EPS of about Rs.10 and an EV/EBITDA multiple of nearly 12.5x. Listed metal recycling pers such as Jain Resource, Gravita India, Pondy Oxides are ruling at PE multiple of 25-32x, albeit for superior margins. Thus, IPO pricing has left about 15% on the table for prospective investors, on relative comparison.
Not a Portfolio Stock
- Iran-Israel war is likely to adversely impact Q4FY26 earnings, due to shipping disruption and cost escalations, as seen in last quarter earnings for peers.
- Depreciating rupee is not heathy for the company, as imports from USA are 50% of raw material procurement, while 97% of sales occur in India. Pricing is generally with a lag of 1 month.
- Company mentions 2.7 lakh carbon credits, but these are not yet traded and hence may not really be valuable, at the most may be Rs. 25 cr can be assigned to them, if at all a market for trading starts and develops in India. However, this is not a material investment thesis.
While Rs.70 cr capital work in progress as of 31.12.25 provides some growth visibility as it operates on 10x asset turn, company’s low single digit margins, huge auto dependance and Q4FY26 earnings concerns make the fundamentals quite dull.
2nd Jun 2026 at 07:46 pm