KRN Heat Exchanger and Refrigeration Limited

As per financial performance, KRN Heat Exchanger and Refrigeration Limited has posted total income / net profits of Rs 158.23 Cr / Rs 10.59 Cr (FY22), Rs 249.89 Cr / 32.31 Cr (FY23) and Rs 313.54 Cr / Rs 39.07 Cr (FY24). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 7.19 and average RoNW of 29.68% for last three fiscals. Issue is priced at a P/BV of 7.71 as per NAV of Rs 28.53/- as on 31.03.24. If we attribute latest earnings of FY22, FY23, and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 129.08, 42.30 and 34.99 respectively, which looks fully priced. As per RHP, there is no listed peers. On BRLM's front, one lead manager is associated with this IPO, and have handled around 9 IPOs (SMEs & Main Board) in last three fiscals. Holani Consultants Private Limited: This is 10th IPO from this BRLM. From last 9 IPOs (SME & Mainboard), all opened above issue price or at par on the day of listing. As of now, from last 9 IPOs, all are trading above issue price or at par. (As on 19.09.24) As per financials, KRN Heat Exchanger and Refrigeration Limited has shown good results, RoNW is 29.68% and P/E is respectively 129.08, 42.30 and 34.99 as per FY22, FY23, and FY24 earnings. So, issue looks fully priced. Company is in business of manufacturing fin and tube type heat exchangers for the Heat Ventilation Air Conditioning and Refrigeration Industry. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Santosh Kumar Yadav
• 2 Mrs. Anju Devi
• 3 Mr. Manohar Lal