KRN Heat Exchanger and Refrigeration Limited
KRN Heat Exchanger is engaged in the business of manufacturing parts of air conditioning. The IPO of this company was launched in September last year 2024. The company had raised Rs 341 crore through IPO. The share price in the IPO was fixed at Rs 220 per share. The shares of KRN Heat Exchanger were listed in the market at Rs 480 per share, i.e. the listing was done at a premium of about 119 percent over the IPO price.
Currently, the shares of this company closed at 924 on Friday, March 21. Currently, the shares of this company closed at 924 on Friday, March 21. According to the price at which this stock is trading right now, whoever got the shares of this company in the IPO, their value has increased more than 4 times and that too in 6 months. This stock has also made a high of above 1000 (1024).
About KRN Heat Exchanger
KRN Heat Exchanger is a specialized manufacturer of high-performance heat exchangers used in various industrial applications, including power plants, chemical processing, HVAC systems, and automotive industries. Known for its advanced thermal engineering, KRN designs and fabricates heat exchangers that maximize heat transfer efficiency while ensuring durability and cost-effectiveness. The company’s product range includes shell and tube heat exchangers, plate heat exchangers, and air-cooled systems, catering to both standard and custom requirements. With a strong focus on innovation and quality, KRN Heat Exchanger serves a global clientele, providing energy-efficient solutions that enhance operational efficiency and sustainability.
KRN Heat Exchanger Share Price
On Friday, March 21, shares of KRN Heat Exchanger and Refrigeration exhibited a positive performance, closing at ₹921.25, up ₹24.70 (2.76%) from the previous close of ₹896.55. The stock opened at ₹899.05 and experienced intraday volatility, reaching a high of ₹940.00 and a low of ₹885.55. The price movement suggests strong buying interest, with the stock closing closer to the day’s high, indicating bullish sentiment.
KRN Heat Exchanger IPO
KRN Heat Exchanger and Refrigeration Limited launched its IPO from September 25 to 27, 2024, with a price band of ₹209-₹220 per share and A lot size of 65 shares. The company aimed to raise ₹341.95 crore through the issue of 15,523,000 shares. It debuted on the stock market on October 3, 2024, at ₹480 per share, delivering a strong listing premium. For FY 2023-24, KRN reported revenue of ₹313.54 crore and a profit of ₹39.07 crore. The IPO proceeds are intended for setting up a new manufacturing facility in Rajasthan and other corporate purposes. The company specializes in fin and tube-type heat exchangers, serving both domestic and international HVAC&R markets.
KRN Heat Exchanger Financials
For the quarter ending December 2024, the company reported sales of ₹112 crore, marking a significant increase from ₹91 crore in September 2024, ₹96 crore in June 2024, and ₹82 crore in March 2024. This consistent growth indicates strong demand and expanding business operations. However, the company’s expenses also increased proportionally, reaching ₹96 crore in December, compared to ₹73 crore in September, ₹78 crore in June, and ₹64 crore in March.
Despite higher expenses, the company managed to maintain a stable operating profit, reporting ₹16 crore in December, ₹18 crore in both September and June, and ₹18 crore in March. However, the operating profit margin (OPM%) declined to 14% in December from 20% in September, 18% in June, and 21% in March. This suggests that while revenue is increasing, profitability per unit of sales is decreasing due to rising costs.
The profit before tax (PBT) for December stood at ₹19 crore, slightly higher than ₹17 crore in September and June, but the same as March. The company’s tax expense remained high, with the tax rate fluctuating between 28% and 30% across the four quarters. As a result, the net profit for December 2024 was ₹14 crore, compared to ₹12 crore in September, June, and March. The earnings per share (EPS) for December was ₹2, lower than ₹3 reported in the previous three quarters, indicating some dilution in earnings or a reduction in profit margins.
Overall, KRN Heat Exchanger and Refrigeration has demonstrated consistent revenue growth over the four quarters, but its profitability margins have been under pressure. Increasing expenses and a higher tax burden appear to be impacting the net earnings, despite the rise in sales. Investors may want to monitor future cost-control measures and efficiency improvements to sustain earnings growth.
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KRN Heat Exchanger Promoter Holdings
As of December 2024, promoters hold a significant 70.79% stake in KRN Heat Exchanger and Refrigeration, indicating strong ownership control and confidence in the company’s future growth. A high promoter holding typically reflects the management’s commitment to the business and aligns their interests with shareholders. However, it also means lower public float, which can impact stock liquidity. Investors often view a high promoter stake as a sign of stability, but they also watch for any changes in promoter shareholding, as reductions may signal a shift in confidence or strategic direction.
KRN Heat Exchanger Key Details
KRN Heat Exchanger and Refrigeration has a market capitalization of ₹5,726 crore and is currently trading at a P/E ratio of 111.20, indicating a high valuation compared to earnings. The stock’s book value stands at ₹80.49, with a price-to-book ratio of 11.12, suggesting a significant premium over its intrinsic value. The company’s return on capital employed (ROCE) is 36.92%, while the return on equity (ROE) is 29.68%, reflecting strong profitability.
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KRN Heat Exchanger Returns
the stock has delivered impressive returns gaining 4.52% in a week, 8.90% in a month, and 29.70% over three months. Notably, in the last six or seven months from the listing, stock has surged by 92.41%.
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