KRN Heat Exchanger and Refrigeration LtdNSE:KRN
Current view Q4 2026
Makes cooling coils for AC and data centres; sales jumped 38%. But the big new factory is only 15-20% used, profit margins slipped, and it may sell new shares, hurting existing owners.
Latest exchange filings last 5 · 5 after Q4 2026
- 3 Sep ’26Announcement under Regulation 30 (LODR)-Newspaper Publication 3 Sep ↗
- 2 Sep ’26AGM on 25 September 2026; annual report for FY 2025-26 and e-voting schedule announced. ↗
- 2 Sep ’26Notice Of 9Th Annual General Meeting 2 Sep ↗
- 2 Sep ’26Announcement under Regulation 30 (LODR)-Newspaper Publication 2 Sep ↗
- 18 Aug ’26Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 18 Aug ↗
Exchange filings, with the company's own one-line summary, read off the same page as the figures. Screener publishes only the most recent few, so this is the last 5 — not everything filed since your note, and a quiet-looking list is not proof of a quiet quarter. A filing is marked new when it is dated after the end of the quarter your note covers. Not scored, and not a judgement — a routine repayment notice and a takeover sit in the same list.
AI concall report · Q4 2026
The full earnings-call read behind this view — what management promised, what they delivered, and the earning trigger.
Growth Q4 2026
| Metric | This year vs lastYoY · vs Q4 2025 | vs the quarter beforeQoQ, sequential · vs Q3 2026 | 3-year yearly average3Y CAGR · compounded | 5-year yearly average5Y CAGR · compounded |
|---|---|---|---|---|
| Sales | ▲ +54.2% | +48.5% | +40.1% | +54.8% |
| Operating profit | ▼ −10.0% | +5.9% | +24.7% | +75.2% |
| EPS | ▲ +22.6% | +11.5% | +16.0% | +15.4% |
| PAT | ▲ +21.4% | +13.3% | — | — |
Tinted rows drive the Tier. Tier = the weaker of YoY Sales and YoY PAT growth. Here the weaker is PAT at +21.4%, which is ≥ 20% → Tier 1.
QoQ is sequential, not a trend. For most Indian companies the March quarter is seasonally the largest, so a June-quarter fall against it is a calendar effect. Only the YoY column feeds the Tier.
Multibagger potential
Average52/100
Growing fast — and the market has noticed. Profit per share grew 16% a year, and buyers now pay more for each rupee of it than they did a year ago. Some of the re-pricing has already happened.
₹1,387 → ₹2,775 needs the P/E at 155× — it is 121× today, and has ranged 49× to 136× over the last 5 years. The rest would come from earnings growing as they have.
What you pay for its profitlog scale · 5-year range
Tripling needs 232× — never traded above 136× in 5 years.
Target capped at 16× — its 92× five-year average came from near-zero earnings.
At ₹184 the price-tag on its earnings reaches the 16× it is being projected toward — the point where being cheap against that yardstick is used up.
Re-rated already, on growth that doesn't fully back it.
How this is calculated
This is arithmetic, not a forecast — Return = ΔEPS × ΔMultiple. It says what would have to be true, not how likely it is, and "earnings keep growing at this rate for three more years" is the assumption doing the most work. This is a mid-cap at ₹9,402 cr, so the odds of a re-rate are not fighting its own size.
Why the target is capped at 16×. This company averaged 92× over five years, but a multiple that high comes from near-zero earnings rather than from what buyers chose to pay — projecting a return to it would price in the collapse, not the recovery. 16× is what a 16% grower supports.
Growth rate used: 16.0% — the weakest of EPS / Sales / Op-profit from 3-year EPS CAGR. Latest quarter reads 23%.
How it compares with its rivals Capital Goods · 6 of 34 listed
It earns 16% on its capital, fifth of 6, and it is the most expensive of those shown.
| Company | Price | P/E | Size | ROCE | Profitlast qtr | Saleslast qtr |
|---|---|---|---|---|---|---|
| KRN Heat Exchan | ₹1,430 | 126.0× | ₹9,361 Cr | 16.1% | +19.0% | +59.1% |
| HBL Engineering | ₹760 | 26.3× | ₹21,070 Cr | 59.3% | −25.1% | +6.0% |
| Inox India | ₹2,089 | 73.7× | ₹18,964 Cr | 33.5% | −5.0% | +9.2% |
| Esab India | ₹5,638 | 42.0× | ₹8,679 Cr | 64.7% | +37.1% | +19.6% |
| Subros | ₹701 | 26.6× | ₹4,571 Cr | 19.2% | +1.7% | +17.5% |
| Harsha Engg Intl | ₹442 | 26.0× | ₹4,025 Cr | 13.0% | −1.4% | +25.2% |
Screener's own peer group, from the request already made for the industry P/E. It serves the industry's largest names by market cap, not companies of a similar size, so treat this as context rather than a like-for-like table; this company is always shown. On a phone the price, size and sales columns are dropped rather than pushed off the edge. Not part of the score.
Business quality to Jun 2026
| Are the margins widening? | no — margins have been squeezed | operating margin 19% → 14% over 2.8 years |
|---|---|---|
| Did the profit turn into cash? | very little of it arrived as cash | 39% last year, 35% over three · free cash flow ₹14 cr, positive in 3 of 5 years |
| Is the growth borrowed? | lightly borrowed | ₹91 cr — 0.16× its own equity (was 0.07×) |
| Is it being collected? | customers are taking longer to pay | 102 days to collect, up 23 in a year · cash cycle 112 days |
| Who has been buying? | the promoters have been selling | promoters 65.7% (−5.1 in a year), 70.8% → 65.7% over 21 months · FIIs 8.9% (+6.5) · DIIs 8.3% (+2.3) · shareholders 87,558 → 91,234 |
| What does it earn on its capital? | earns a fair return on its capital | ROCE 16.1% · ROE 13.4% |
Fetched from the filings, not typed — and deliberately not part of the score. These are the questions the score cannot ask: it reads growth, price and trend, so a company can score well while its profit never becomes cash. Weigh these beside the note, not against the number.
Screener's own checklist not mine, not the score
In its favour
- Company is expected to give good quarter
- Company has delivered good profit growth of 95.9% CAGR over last 5 years
- Company's working capital requirements have reduced from 118 days to 86.4 days
Against it
- Stock is trading at 15.6 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Promoter holding has decreased over last quarter: -5.10%
- Debtor days have increased from 80.9 to 102 days.
Generated by screener.in from a fixed checklist — not written by me and not an input to the score. It is here as a second machine opinion to weigh against the note; where it disagrees with the view above, the note is the considered one.