Smallcap stock engaged in designing, manufacturing, and supplying heat exchangers and related thermal solutions jumped upto 5 percent in the day’s trade upon signing an MoU worth Rs. 1,000 Crores with the Government of Rajasthan.
Price Action
With a market capitalization of Rs. 2,780 Crores, the shares of KRN Heat Exchanger and Refrigeration Limited were trading at Rs. 447.10 per equity share, up 4 percent from its previous day’s close price of Rs. 430.60.
What Happened
KRN Heat Exchanger and Refrigeration Limited’s wholly owned subsidiary company, KRN HVAC Products Private Limited has entered into a memorandum of understanding with the Government of Rajasthan.
The said MoU is for the establishment of a project for the manufacturing of heat exchangers at Kotputli – Behror (Rajasthan), with a proposed investment of Rs. 1000 crores over a period of time in various trenches. The Proposed Year of commencement of production is 2024, and it is expected to generate 600 jobs.
About the Company
KRN Heat Exchangers Limited is engaged in designing, manufacturing, and supplying heat exchangers and related thermal solutions, catering to sectors such as oil and gas, chemical processing, power generation, refrigeration, and HVAC (Heating, Ventilation, and Air Conditioning).
It offers a wide range of products like shell and tube, plate, finned tube, air-cooled models, condenser coils, evaporator units, evaporator coils, fluid and steam coils, sheet metal parts, and many more.
It has a strong customer base, including Daikin Air-conditioning India Private Limited, Schnieder Electric IT Business India Private Limited, Kirloskar Chillers Private Limited, Blue Star Limited, Climaventa Climate Technologies Private Limited, and Frigel Intelligent Cooling Systems India Private Limited among others.
KRN Heat Exchangers Limited recently came up with the Initial Public Offering of the company’s equity shares, with an issue size of Rs.341.95 Crores and a price band being set at Rs. 209-220 per share. It was listed on the stock exchanges at Rs. 480 with a premium of 118.18 percent.
Financials & Ratios
Its Revenue from operations grew by 24.55 percent YoY from Rs. 247.48 Crores in FY23 to Rs. 308.24 Crores in FY24, accompanied by profits of Rs. 32.31 Crores to Rs. 39.38 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 27.32 percent and a return on capital employed (ROCE) of 29.68 percent. It has reported a debt-to-equity ratio of 0.66.
Written by: Bharath K.S
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