Multibagger IPO Stock Jumps 40% in 5 Days!

Stocks in News | Investors who followed Liquide’s advice to subscribe to KRN Heat Exchanger & Refrigeration’s IPO are celebrating as the stock has delivered impressive multibagger returns. Since its debut on October 3, 2024, KRN’s stock has soared 170% from its issue price, showcasing a strong rally that continues to capture market attention.

KRN Q2FY25 Results: Key Highlights & Analysis

KRN’s recent stock surge is attributed to its robust Q2 FY25 results, which bolstered investor confidence. The stock closed 10.3% higher at Rs 592.85 on the National Stock Exchange (NSE) on Thursday, reflecting over a 40% increase in just five days. 

Key financial highlights from the quarter include:

• Revenue Growth: KRN’s standalone revenue crossed the Rs 100 crore mark, up 39% year-on-year. At the consolidated level too, revenue was up by 28%.
• Profit Surge: Consolidated net profit jumped 43% to Rs 12.37 crore, compared to Rs 8.65 crore in the same period last year.
• EBITDA Margin: Margins expanded by 124 basis points, reaching 21.34%.

Expansion Plans: A Rs 1,000 Crore Investment in Rajasthan

KRN recently announced ambitious expansion plans through its subsidiary, KRN HVAC Products Pvt Ltd. The company signed a MoU with the Government of Rajasthan for a Rs 1,000 crore investment, demonstrating its commitment to enhancing manufacturing capabilities and regional presence.

Liquide’s "Subscribe" Verdict on KRN IPO: A Winning Call

When KRN opened its IPO on September 25, 2024, Liquide issued a strong "Subscribe" recommendation, projecting significant returns for investors. The stock’s listing price of Rs 480 already represented a substantial 118% premium over its IPO issue price of Rs 220. Now trading around Rs 600, investors may find it a promising stock to watch in the HVAC&R industry.

Check the full IPO analysis here.

About KRN Heat Exchanger & Refrigeration Ltd

A key player in the HVAC&R industry, KRN specializes in fin and tube-type heat exchangers using non-ferrous metals like copper and aluminum. It offers a broad portfolio of customized solutions, including condenser coils, evaporator units, and sheet metal parts, catering to various cooling applications.

KRN has shown impressive growth, with operational revenue and net profit achieving compounded annual growth rates (CAGRs) of 41% and 92%, respectively, from FY22 to FY24. Its financial efficiency is reflected in its strong return metrics, boasting a Return on Equity (RoE) of 40.86% and a Return on Capital Employed (RoCE) of 31.21% in FY24. As of March 31, 2024, the company reported EBITDA and Net Profit margins of 18.96% and 12.67%, respectively.

For a deep dive into other IPOs, explore: IPO Corner on Liquide.