KRN Heat Exchanger & Refrigeration Ltd. (KHERL) specializes in fin and tube heat exchangers for the HVAC&R industry, using copper and aluminum. They offer a range of products including condenser and evaporator coils, header/copper parts, and sheet metal parts. To enhance durability and corrosion resistance, they apply advanced coatings like nano and powder coatings. KHERL has established a subsidiary, KRN HVAC Products Private Limited, to expand its product line and control the distribution and sales channels. This forward integration aims to increase customer reach and brand visibility. With a growing list of prestigious clients and a CAGR of 25.46% in revenue, KHERL is set to commission a new plant by April 2025, expecting a sevenfold increase in business volume.

It has prestigious customers in the HVAC&R industry, including Daikin Air-conditioning India Private Limited, Schneider 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.

For the year/period ended (Rs. in Cr.)

For year/ period ended ( in Cr.)

• Highly skilled and experience Promotors
• Long‐standing business relationships with leading clientele.
• Effective quality control checks.

• Investment in the wholly owned subsidiary , KRN HVAC Products Pvt Ltd for setting up a new manufacturing facility at Neemrana, Alwar and Rajasthan.
• General corporate purposes.

The company operates in niche fin and tube heat exchanger with few unlisted competitors. The company’s financials are very strong as revenue grew by twofold while PAT surged fourfold in last two financial years. The company is planning to set up a new plant which will help it to grow its revenue by 6-7 times. Considering its upper price of Rs. 220, the company’s share is expected to list at PE of 33.52 and PB of 2.83 respectively. So we recommend to subscribe IPO for long term gains.