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

Shares of CMR Green Technologies fell nearly 8% from their post-listing highs on Thursday as investors booked profits after a strong market debut. The stock slipped to an intraday low of Rs 250 on the BSE, after listing at a 43% premium to its issue price of Rs 192.

The Rs 630.62-crore IPO was subscribed 127.07 times overall, making it one of the most sought-after public issues of the year. Institutional investors drove the demand, with the qualified institutional buyer (QIB) portion subscribed 270.46 times.

The non-institutional investor (NII) segment was booked 172.35 times, while the retail investor category attracted bids worth 27.08 times the shares reserved for it
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Should you buy, sell or hold CMR Green shares?

Shiavni Nyati, Head of Wealth at Swastika Investmart, said that while the impressive listing highlights positive market sentiment, investors should remember that the IPO was an Offer for Sale (OFS) only, meaning the company did not receive any fresh capital and existing shareholders reduced their stakes through the issue. Following such a sharp listing gain, some profit booking and short-term volatility are likely. Investors who received allotment may consider booking partial profits while continuing to hold the remaining shares for the medium to long term, given the company’s exposure to the growing recycled metals industry. New investors should avoid chasing the stock at elevated levels and wait for a correction or consolidation before considering fresh entries. Overall, caution is warranted after the strong debut. Investors may maintain a stop loss at a cost of Rs 192 to protect gains, as a sustained move below this level could indicate weakening momentum, she added.

Arihant Capital said the company’s leadership in aluminium recycling, and its installed capacity of more than four times that of its nearest domestic competitor, augurs well. The brokerage also pointed to the company’s dominant position in the automotive cast alloy segment, where it commands an estimated market share of 42-45%, and recommended subscribing to the IPO.

SBI Securities said CMR enjoys significant scale advantages with an installed capacity of 4.7 lakh tonnes per annum and sees growth opportunities from expansion into wrought aluminium products and increasing demand for recycled metals. It also maintained a “Subscribe” rating.

Deven Choksey Research noted that the company is well-positioned to benefit from long-term themes such as electric vehicle adoption, rising aluminium intensity in automobiles, decarbonisation and India’s circular economy push. The brokerage recommended subscribing to the issue.

Financially, CMR reported revenue of Rs 6,697 crore and net profit of Rs 155 crore in FY25. For the nine months ended December 2025, it posted revenue of Rs 6,291 crore and profit after tax of Rs 162.4 crore, indicating continued operational momentum.

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CMR Green Technologies, incorporated in 2006, is one of India’s leading non-ferrous metal recyclers and operates in the secondary aluminium market. The company manufactures recycled aluminium alloys, zinc alloy ingots, aluminium billets and other recycled metal products that are used across automotive and industrial applications.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)