This small-cap stock, engaged in manufacturing heat exchangers, refrigeration systems, and HVAC products, serving industrial and commercial sectors with efficient cooling solutions, jumped 3 percent after the company received the Production Linked Incentive (PLI) of Rs.142 crore for Air Conditioners and LEDs.
With a market capitalization of Rs. 5,042.45 crores, the share of KRN Heat Exchanger and Refrigeration Limited has reached an intraday high of Rs. 819 per equity share, rising nearly 3.34 percent from its previous day’s close price of Rs. 792.50. Since then, the stock has retreated and is currently trading at Rs. 811.25 per equity share.
KRN Heat Exchanger and Refrigeration Limited, through its wholly owned subsidiary KRN HVAC Products Private Limited, has received approval under the Production Linked Incentive (PLI) Scheme for white goods (Air Conditioners and LEDs) from IFCI Limited. The approved incentive amount stands at Rs. 141.72 crore.
This significant milestone aligns with the Government of India’s “Make in India” initiative and aims to boost domestic manufacturing and global competitiveness in the white goods sector. The approval marks a major step forward in the company’s growth strategy and commitment to contributing to India’s development as a global manufacturing hub.
KRN Heat Exchanger and Refrigeration Limited was founded in 2017 and is a leading Indian manufacturer and exporter specializing in fin and tube-type heat exchangers for the heating, ventilation, air conditioning, and refrigeration (HVAC&R) industry. The company’s primary products include aluminium or copper fins, copper tube heat exchangers, water coils, condenser and evaporator coils, and various sheet metal parts used in cooling applications. KRN customizes its products to meet specific customer requirements, offering a range of diameters and configurations.
The company operates two manufacturing facilities producing 5mm to 15.88mm heat exchanger tubes across six product categories. Its consolidated production capacity reached 1 million units. Its marquee clients include Daikin, Schneider Electric, Kirloskar Chillers, Climaveneta, Knorr-Bremse, Blue Star, Carrier, Voltas, and Trosten Industries, showcasing its strong industry presence.
Coming into financial highlights, KRN Heat Exchanger and Refrigeration Limited’s revenue has increased from Rs. 82 crore in Q4 FY24 to Rs. 131 crore in Q4 FY25, which has grown by 59.76 percent. The net profit has also grown by 16.67 percent, from Rs. 12 crore in Q4 FY24 to Rs. 14 crore in Q4 FY25. KRN Heat Exchanger and Refrigeration Limited’s revenue and net profit have grown at a CAGR of 54.32 percent and 123.61 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 20.7 percent and 16 percent, respectively. KRN Heat Exchanger and Refrigeration Limited has an earnings per share (EPS) of Rs. 8.07, and its debt-to-equity ratio is 0.07x.
Written By – Nikhil Naik
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