Synopsis:
The small cap stock manufacturing heat exchanges is in focus after its subsidiary has acquired the Bus Air-Conditioning division from Sphere Refrigeration Systems.
A small-cap Company that is engaged in the business of manufacturing fin and tube-type heat exchangers for the Heat Ventilation Air Conditioning, and Refrigeration Industry, is in the spotlight after announcement that its subsidiary, KRN HVAC Products, signed a Business Transfer Agreement to acquire the Bus Air-Conditioning division of Sphere Refrigeration Systems.
With the market capitalization of Rs. 5,357.28 crore, the shares of KRN Heat Exchanger and Refrigeration Ltd is trading at Rs. 861.35, up by 4.12 percent from its previous day’s close price of Rs. 827.25 per equity share, and it has reached a high of Rs. 892 in the same trading day up by 8 percent.
The stock has delivered an annual return of 104.06 percent from Rs. 422.43 on 7 October 2024 to current market price of Rs. 861.35 per equity share.
What’s the News?
On 6th October 2025, KRN Heat Exchanger and Refrigeration Limited announced that its subsidiary, KRN HVAC Products, signed a Business Transfer Agreement to acquire the Bus Air-Conditioning division of Sphere Refrigeration Systems.
The acquisition will include all operations, assets, and employees, and the division will be fully integrated into KRN HVAC, expanding its product range in transport and mobility cooling. This move strengthens KRN’s strategy to diversify its HVAC portfolio, tapping into the growing demand for energy-efficient and comfortable bus climate control solutions, and is expected to boost revenue, profitability, and market presence.
Also Read: Will this IT stock leverage NVIDIA to lead AI & Cloud Growth?
Management View
Mr. Santosh Kumar, CMD of KRN Heat Exchanger, stated that acquiring Sphere’s Bus Air-Conditioning business is a key step in KRN’s growth and diversification. The deal strengthens their position in automotive HVAC and aligns with their goal of offering complete solutions across industries. He welcomed the Sphere team, highlighting their expertise and innovation, and expressed confidence in creating greater value, scale, and leadership in the HVAC sector.
About the Company & Others
KRN Heat Exchanger and Refrigeration Limited, established in 2017 in Neemrana, manufactures aluminium and copper heat exchangers for HVAC&R applications, producing over 1 million units annually with 23 percent exported.
Supported by an experienced engineering team, the company focuses on customized, high-quality, and durable solutions that meet international standards, emphasizing reliable products and efficient manufacturing.
A return on equity (ROE) of about 16.8 percent, a return on capital employed (ROCE) of about 20.8 percent and debt to equity ratio at 0.07 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 101x higher as compared to its industry P/E 31.3x.
The company reported Q1FY26 revenue of Rs. 115 crore, up 19.8 percent YoY from Rs. 96 crore in Q1FY25 but down 12.9 percent QoQ from Rs. 132 crore in Q4FY25. Profit remained stable at Rs. 12 crore YoY, declining 20 percent QoQ from Rs. 15 crore in Q4FY25.
Written by Akshay Sanghavi
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
