This Smallcap stock, which deals in the business of manufacturing fin and tube-type heat exchangers for the Heat Ventilation Air Conditioning, and the Refrigeration Industry, is in focus after it plans to grow its revenue by 5 to 6 times.
Share Price MovementÂ
In Thursday’s trading session, KRN Heat Exchanger and Refrigeration share price was down by 2.47 percent and closed at Rs. 928.90 per share from the previous close of Rs. 952.45 per share.Â
In the past year, the stock has given around 94 percent returns, and compared to the Nifty Index, KRN Heat Exchanger and Refrigeration has outperformed.
Industry Outlook
The Indian HVAC sector is growing rapidly, which is fueled by urbanization, rising disposable incomes, and climate change. The Government initiatives like ‘Make in India,’ PLI schemes, and others can aid the company to gain on opportunities.
The market is projected to reach $30 billion by 2030, growing at a 15.8 percent CAGR, which is driven by infrastructure expansion, urbanization, and increased demand for energy-efficient systems.
Future Plans
The company is aggressively expanding its capacity and market reach. They are investing over Rs. 300 crore in a new facility in Neemrana, Rajasthan, which will increase production capacity six times. Sample production will start in April 2025, with mass production expected in the H2FY26. The company aims to achieve 5x-6x revenue growth over the next three years.
KRN plans to focus on high-growth sectors such as railway electrification, industrial cooling, and heavy earth movers. The company has entered into a Memorandum of Understanding (MoU) with the Rajasthan Government which aims for an investment of Rs. 1,000 crore over five years. It is also optimizing margins through solar energy adoption, government incentives, and manufacturing efficiencies.Â
Financials
In its latest filing for the quarter ending December 2024, the company reported a 68.18 percent rise in revenue, reaching Rs. 111 crore compared to Rs. 66 crore in Q3FY24. During the same period, net profit increased by 75 percent from Rs. 8 crore in Q3FY24 to Rs. 14 crore in Q3FY25.
Business Segments
The company earned 55.24 percent of its operational revenue from Condenser Cells, followed by 37.49 percent from Evaporator Cells, 1.51 percent from Headers or Copper Parts, 0.04 percent from Sheet Metal Parts, and the remaining 5.7 percent from Others for FY24.
Geographically, they earn 58.97 percent from Asia, 23.55 percent from North America and the remaining 17.48 percent from Europe for FY24.
Company ProfileÂ
KRN Heat Exchanger and Refrigeration Limited, established in 2017, specializes in manufacturing fin and tube-type heat exchangers for the HVAC&R industry. It exports globally and serves major clients like Daikin and Schneider Electric, with a strong focus on customization and quality.
Written by – Santhosh S
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