Can CMR Inexperienced’s IPO ship long-term good points for high-risk buyers?

ET Intelligence Group: CMR Inexperienced Applied sciences, a non-ferrous metallic recycling firm, plans to lift ₹630 crore by means of a suggestion on the market. The promoter shareholding will decline to 84% after the IPO from 87%. Robust demand for recycled aluminium and different non-ferrous metals offers long-term progress visibility. Nevertheless, the enterprise stays uncovered to focus dangers, with recycled aluminium contributing over 80% of income, leaving it susceptible to commodity worth volatility. Furthermore, almost half of its gross sales are derived from the highest 10 prospects. Given these components, the difficulty seems to be appropriate for long-term buyers with the next threat tolerance.

Enterprise

Integrated in 2005, the corporate manufactures aluminium alloy ingots and liquid aluminium, together with zinc alloys and different recycled metals resembling copper and stainless-steel. The share of aluminium merchandise in income elevated to 81.9% in 9 months to December 2025 from 78% in FY25. The corporate operates 13 recycling amenities throughout the nation, with an put in capability of about 6.2 lakh tonnes each year as of March 31, 2026. It’s a key participant within the forged alloy phase of the automotive trade, the place it held an estimated 42-45% market share by quantity in FY25, in response to the ICRA report.

India’s recycled aluminium market is projected to succeed in $9.2 billion with a quantity of three.7 million tonnes, rising 13.2% in worth and 11.2% in quantity yearly over FY2026-FY2030, in response to the report.

Financials
Income grew at a compounded annual progress charge (CAGR) of 6.6% to ₹6,666 crore whereas web revenue rose by 22% to ₹155 crore between FY23 and FY25. Working margin earlier than depreciation and amortisation (EBITDA margin) expanded to 4.6% from 3.5% in the course of the interval. In FY24, the corporate reported a web lack of ₹838 crore as a consequence of a one-time goodwill write-off. The debt-to-equity ratio elevated to 0.6 in FY25 from 0.2 in FY23, throughout the peer vary of 0.06-0.93.

Working money circulate (OCF) was unfavorable at ₹387.7 crore as of December 2025 and ₹92 crore in FY25 as a consequence of a pointy enhance in uncooked materials prices, significantly aluminium, and ramp-up of latest manufacturing amenities. OCF was ₹74 crore in FY24 and ₹611 crore in FY23. Commerce receivables days elevated to 38 days in nine-months to December 2025 from 34 days in FY23, reflecting prolonged assortment cycles.

Valuation
The corporate calls for a price-earnings (P/E) a number of of 19 on post-IPO foundation in contrast with a P/E of 29 for Pondy Oxides and Chemical substances, 31.6 for Gravita India and 36.5 for Jain Useful resource Recycling.