CMR Green Technologies Limited

Basic Materials — Aluminum · NSE

₹219.10+₹2.41 (+1.11%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of CMR Green Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

CMR Green Technologies Limited manufactures and sells aluminum and zinc die-casting alloys in India and internationally.

IndustryAluminum

SectorBasic Materials

Employees373

Annual revenue₹7,215 Cr

How does it make money?

Turns over ₹7,215 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 373 employees supports ₹19.34 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹19.34 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE18.7%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 12.6% and earnings to grow about 24.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.6%

Est. earnings growth+24.0%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +62% while net margin moved +34% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+62%

Margin effect+34%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

55/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

17.9x

Sector Median

12.2x

median of 4 sector peers

⚠️Against its sector it trades 47% above the peer median of 12.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

12.2x median of 4 peers · +47%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.2x

PEG

0.61

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.8% to 6.5% over 3 years.
Return on equity is rising
ROE has improved from 4.6% to 13.9%.
Return on capital is rising
ROCE has improved from 6.7% to 19.8%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 268% over 3 years, from ₹387 Cr to ₹1,426 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Inventory building faster than salesFinancial
Inventory up 113% against revenue up 62% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 4.8% to 6.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 47% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.4% CAGR
Latest reported year was 64.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹545 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 17%✓ 19.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹4,800 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.13x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.24

Profitable

Profitable on a per-share basis

ROE

13.9%

Moderate

Moderate capital efficiency

ROCE

19.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.83x

Moderate

Moderate leverage

Revenue Growth (YoY)

64.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

15.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹545 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

12.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.9%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.45

Comfortable

Healthy short-term liquidity

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

222.7 / 221.0

Bullish alignment (short > long)

RSI (14)

44.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,454 Cr	₹4,703 Cr	₹5,388 Cr	₹7,215 Cr	+17.4%
EBITDA	₹214 Cr	-₹1,008 Cr	₹306 Cr	₹471 Cr	+30.0%
EBITDA Margin	4.8%	-21.4%	5.7%	6.5%	—
PAT (Net Profit)	₹98 Cr	-₹844 Cr	₹142 Cr	₹212 Cr	+29.6%
EPS	₹4.46	₹-38.54	₹6.5	₹9.7	+29.6%
ROE	4.6%	-68.5%	10.4%	13.9%	—
ROCE	6.7%	-67.8%	14.7%	19.8%	—
Total Debt	₹387 Cr	₹535 Cr	₹925 Cr	₹1,426 Cr	+54.4%
Free Cash Flow	₹490 Cr	-₹70 Cr	-₹332 Cr	-₹545 Cr	—

🟢 Revenue has grown at 17.4% a year over 3 years.

🟢 EBITDA has grown at 30.0% a year over 3 years.

🟢 EBITDA Margin has risen from 4.8% to 6.5% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 29.6% a year over 3 years.

🟢 EPS has grown at 29.6% a year over 3 years.

🟢 ROE has risen from 4.6% to 13.9% over 3 years (+9.2 pts).

🟢 ROCE has risen from 6.7% to 19.8% over 3 years (+13.1 pts).

🔴 Total Debt has grown at 54.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹490 Cr to -₹545 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,873 Cr

Total Liabilities

₹2,148 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹410 Cr

Capex

-₹135 Cr

Shareholding (proxy)

Institutional Holding

6.9%

Insider Holding

85.0%

Analyst Consensus

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%

Recent News

1 mixed5 general

CMR Green Technologies Ltd. Share Price Live Today

CNBC TV18, 16 Oct

CMR Green Technologies schedules 21st AGM, seeks ₹2,000 crore borrowing limit approval

scanx.trade, 16 Oct

CMR Green Technologies IPO Vs Hexagon Nutrition IPO? Top Differences Investors Must Know Before Applying

Goodreturns, 12 Oct

CMR Green Technologies Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

CMR Green Tech shares fall 8% after solid 43% stock market debut. Buy, sell or hold?

The Economic Times, 10 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

CMR Green’s IPO: Price Band Rs182-192

https://www.fintechbiznews.com/, 09 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑