Leading brokerage firm Kotak Securities has highlighted several concerns regarding the upcoming IPO of CMR Green Technologies. It is observed that there is only one list in their DRHP that ticks all the boxes, which is the risk profile, which includes past large losses, anticipated loss in sales, lack of long-term business contracts and high reliance on certain customers. Additionally, the company reported a profit of ₹104 crore in FY23, but that was followed by a huge loss of ₹838 crore in FY24, followed by a profit of ₹155 crore in FY25, and despite returning to profit, the overall net loss in the three-year period was ₹579 crore. Market analysts say such sharp fluctuations raise concerns about earnings sustainability, predictability and sustainability of future cash flows – important considerations for IPO investors looking for the safety of their investments.
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