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
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