i think in one of their concalls they had also invited analysts to visit their plant to get a tour of their factory. i think analysts are interested in finding about their business and capabilities, plans etc. Hence these meetings i guess.
2 Likes
Transformational factory that will become live in Apr25, built with investment of 300 Cr., and will increase capacity by 6x does not appear in balance sheetâs CWIP. Is that a new form of asset light ,say asset invisible, business model?
Source: Conference Call
1 Like
I mean , may be that CWIP asset is under private ltd subsidiary, hence shown under cash equivalent of main entity. Am I reading wrong?
Even More investor meetings !
Hopefully theyâre cooking something good , not just serving free tea and biscuits! Holding tight on my biggest position! !! 
4 Likes
KRN HVAC secures vendor approval from Indian Railways
3 Likes
Could not attend todayâs call on Arihant Bharat event. Looking for the insights of members here on the recent developments.
2 Likes
Sharing the latest video and concall with Arihant capital..
Discloser: Invested in this stock
5 Likes
Thanks for this, investor meet gives lot of clarity
Here is summary of wht the videos all about.
I rather have more questions, if someone knows details on that.
Ive attached transcript, if someone wants to check detailed Q&A at these videos
KRN Q&A.docx (16.8 KB)
.
Data Center â Demand is high, with the Indian market growing at 60-70%. Exports, especially to the U.S., are also strong. Expects 50% of revenue from this segment, expanding further once the new facility is operational.
Q- how much they r doing on data centre now ?
Expansion â Mainly supplying to OEMs with forecasts and recurring orders, not project-based contracts. new facility will increase capacity 6x, targeting 1,800 crore revenue by FY28.
Q- has anyone came across such steep growth post IPO ? 82% topline CAGR !! isnt it too much ? wht is reasonable here ? based on this the forward PE is 23 ?
Market â Itâs a large global market where competitors like Modine, Luvata Group have revenues of 50K-60K crore. The companyâs strength lies in high-quality, customized products, making it a preferred vendor for OEMs.
Q - I didnt really get anything here , this is combined market of all products of KRN ?
Railways â Got approval for electric loco. supplying prototypes, after 6 month trials, may supply. Mkt size: 3k units per year at 3.5 lakh per unit.Competitors include other approved railway vendors.
Q - This is small size 100 crâŚif KRN get 50% share, it will hardly add 50cr/yr ?
Exports & Future Growth â Targeting 50% export revenue for existing products. Expansion will support growth into new markets, including off-road vehicles, heavy machinery, and commercial HVAC.
Q - I presume these are all central Air conditioning componenets ?
I find the promoter to be technically expert and has a grip on numbersâŚi am now trying to find how active KRN/Promoter is on social media ?
Why do i get an impression on the team that its pretty much concentrated to promoters and board ?
D- Holding.
1 Like
Fluidity is where opportunity lies. If it is all clear, then it wonât be an opportunity. In my limited understanding, KRN promoter is hands-on, all new product development goes through and with him. Thus chances of product made and not accepted by market, those chances are slim. He repeatedly says that whole reason for 6x expansion is they have lot of clients in waiting, capacity constraints have limited them in expanding. I have heard several interviews of Mr. Yadav, in one of the interview he mentioned that until now, they have expanded every year, however the opportunity size is so big, they finally made a call to go to market raise big funds and go with 6x expansion. To me it gives more certainity in their ability to execute on their guided nos. Railway order while it is small, they may use this platform to extend to other vendors. He is not doing this for 50 cr. business after investing so many months. Lately funds like ENAM has met the management, whether they invest or not is one thing but the sheer fact it gets their attention is worth noting. If it is some small time fund, I would have ignored this. Market has high hopes, Q4 may be tepid because new capacity is not online, but markets are forward looking, letâs see. I am looking at this that if the opportunity plays out then what as compared to what if it does not. I by no mean claim to be an expert but the whole reason we hear management in several forums is to really get undertone and their confidence or if they pulling a fast one. Here this gentleman appears to be worth betting. Technically this one is on my profile of stock which has not corrected much where lot of supposedly good cos have halved. So people are not throwing the towel on this one, not yet anyways. Actively monitoring and observingâŚ
7 Likes
Did you assess what makes them so unique that others canât enter into this line of business if the opportunity size so big? Of late we are seeing big businesses (eg: Birla, Adani) entering new verticals.
2 Likes
Data Center Business: Currently, the Data Center segment contributes around 7% of revenue, with KRN targeting an increase to approximately 14% by FY26.
Expansion Plans: The ongoing expansion has been delayed by one month and is now expected to be completed by May 2025. As a result, capacity utilization is projected to reach 25-35% in FY26, with full utilization (~85%) anticipated by FY28. KRNâs products account for roughly 20-30% of the total product costs.
Railways Segment: The current order pertains specifically to electric locomotives. However, the railways sector offers additional opportunities, such as air conditioning systems for Vande Bharat trains, where the overall order potential is substantial. KRN is actively pursuing these other product segments as well.
Exports & Future Growth: The export opportunity relates to coils.
D-Holding.
4 Likes
beginner here. what do these trades from graviton mean? same qty and same price buy and sell on same day..
It is an algo based trades which captures momentum and profits with minimal price differential however with large volume qty. One thing I have observed is, these algos are early ones to detect momentum in a stock, while there trades are intraday, stock signals a move in upcoming weeks / months.
5 Likes
@aceinvestor_75 , Operating cash flow is negativeâŚand working capital days are increasing by large amounts but nobody is asking these questions in concalls..everybody is focused on 6 times revenue in next 3 yearsâŚwhy so?
4 Likes
One analogy I can draw here is Manorama Industries, company on sustainable and explosive growth path with -ve OCF, market has been rewarding it. Quality of growth matters combined is management quality. I feel market believe the weaker parameters will get sorted in due course, krn is leader in its space which also helps, working with top clients like Daikin.
5 Likes
@aceinvestor_75 , After Gensol episode, I get fearful of operating cash flow negative and profit not converting into cash. In gensol also , negative operating cash flow was hallmark.
9 Likes
Annual results.
Result Link > https://www.bseindia.com/xml-data/corpfiling/AttachLive/7f29d537-ad40-44cb-a13b-575012695c5b.pdf
Cash flow
@Vikas2412
can you suggest how the YoY growth is calculated at this auto analysis ?