KRN Heat Exchanger and Refrigeration Limited (KHERL) is a prominent manufacturer of fin and tube-type heat exchangers, serving the critical needs of the Heat Ventilation Air Conditioning (HVAC) and Refrigeration Industry. Incorporated in Bhiwadi, Alwar, as KRN Heat Exchanger and Refrigeration Private Limited on August 25, 2017, the company has since transitioned to a public limited entity. Headquartered in Neemrana, India, KRN Heat Exchanger currently employs a dedicated workforce of 553 individuals.
The core business of KRN Heat Exchangers revolves around the design, manufacturing, and supply of advanced heat exchangers and comprehensive thermal solutions. These products are engineered for efficient heat transfer between fluids, primarily for heating or cooling applications. The company has specialized in the fabrication of heat exchangers utilizing non-ferrous metals, predominantly copper and aluminum, catering to a wide spectrum of applications within the HVAC and refrigeration sectors.
KRN Heat Exchanger and Refrigeration Ltd. boasts a market capitalization of ₹5,761 Crore as of July 2025. The company has demonstrated a strong and consistent financial performance, particularly in recent quarters. Notably, the net profit for the quarter ended March 2025 surged by 23.40% to ₹14.87 Crore, an improvement from ₹12.05 Crore in the corresponding quarter of the previous year (March 2024). This represents a significant year-on-year increase in profitability.
- Revenue: ₹131.50 Crore (as of March 2025)
- Net Profit: ₹14.87 Crore (as of March 2025)
- Annual Revenue Growth: 25% (demonstrating outstanding performance)
- Pre-tax Margin: 18%
- Return on Equity (ROE): 30% (exceptional)
- Debt to Equity Ratio: 10% (signaling a healthy balance sheet)
The company has effectively managed its debt, moving towards an almost debt-free status, which further solidifies its financial standing. KRN Heat Exchanger also exhibits a commendable Return on Equity (ROE) track record, with a 3-Year ROE of 27.1%, underscoring its consistent profitability and efficient utilization of shareholder capital.
The heat exchangers manufactured by KRN Heat Exchanger are constructed from high-quality non-ferrous metals, specifically Copper and Aluminium. Its comprehensive product portfolio includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils, and various sheet metal components. The company produces heat exchanger tubes with diameters ranging from 5mm to 15.88mm. These products are ideally suited for a diverse array of applications in air conditioning, heating and ventilation, refrigeration, and process cooling systems.
KRN Heat Exchanger serves a distinguished clientele within the HVAC industry, including renowned names such as Daikin, Blue Star, Voltas, and Carrier Aircon. Key clients include Daikin Airconditioning India Pvt Ltd, Schneider Electric IT Business India Pvt Ltd, Kirloskar Chillers Private Ltd, Blue Star Ltd, Climaventa Climate Technologies Pvt Ltd, and Frigel Intelligent Cooling Systems India Pvt Ltd. Furthermore, the company actively exports its products to numerous international markets, including the UAE, USA, Italy, Saudi Arabia, Norway, Czech Republic, Germany, and the UK, among others.
The stock of KRN Heat Exchanger and Refrigeration Ltd. has displayed impressive performance since its initial public offering (IPO). The IPO bidding period was from September 25, 2024, to September 27, 2024. The company's 52-week high share price stands at ₹1,011.60, with a 52-week low of ₹402.40. In the last month, KRN Heat Exchanger and Refrigeration Ltd. share price saw a notable increase of 23.79% on the BSE. Over the past three months, the share price has appreciated by 23.31% on the BSE.
From a technical perspective, the stock is trading comfortably above its key moving averages, positioned approximately 10% and 27% above its 50-day and 200-day moving averages, respectively. The stock has recently achieved a breakout from a base on its weekly chart and is currently trading around 5% from its pivot point, which is considered an ideal buying range for the stock. The current valuations are attractive, supported by strong fundamental indicators.
KRN Heat Exchanger has achieved robust capacity utilization in its HVAC business, consistently maintaining levels above 90%. To capitalize on the burgeoning demand within the HVAC sector, the company is actively pursuing significant expansion plans. KRN Heat Exchanger and Refrigeration Ltd. has committed to investing over ₹600 Crore in Rajasthan over the next four years, following a Memorandum of Understanding (MoU) with the state government for a ₹1,000 Crore manufacturing unit.
The company has also secured substantial government incentives under the Production Linked Incentive (PLI) scheme. Its wholly-owned subsidiary, KRN HVAC Products Private Limited, successfully applied for and received approval for incentives amounting to ₹141.72 Crore from IFCI, a Government of India undertaking. The PLI Scheme is a key initiative designed to establish India as a global manufacturing hub for white goods, including Air Conditioners and LED products, aligning with the 'Make in India' initiative.
The Promoter Holding in KRN Heat Exchanger and Refrigeration Ltd. stands at 70.8% as per the latest available data. This promoter holding has remained stable, recorded at 70.79% as of March 2025, consistent with the 70.79% recorded in September 2024. This sustained promoter confidence underscores their belief in the company's future prospects and its long-term growth strategy.
KRN Heat Exchanger and Refrigeration Ltd. presents a compelling investment proposition within the expanding HVAC sector. Its strong fundamentals, growing market presence, and robust financial performance collectively position it for continued and significant growth.
