I would love to initiate conversation on “KRN Heat Exchanger and Refrigeration Limited” the fundamentals look good in fact too good but cant seem to find much about the company through other good sources.
Some Positives
Compounded sales growth and profit growth are very high, ROE and ROCE are also quite high
Air conditioning market expected to grow quite a lot in India
Some Risks
Cash from operations is very less as compared to net profits (time period 2021 to 2024). Need to check if profits have been manipulated or not
Highly dependent on top clientele
Something to dig deeper
The directors are just family and close relatives it seems. There aren’t many people with very high qualifications (Could be an indicator of honesty as well). Some are just 10/12 pass
Disclaimer: Got the IPO allotment and exited after opening day gains
Instead of mentioning some or less, can you include numbers to your analysis. Please do mention their competitors. If there is any moat available or what is the company’s USP, do write them.
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