GrowMoreInv IPO Review

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KRN Heat Exchanger's IPO presents an interesting opportunity for investors, particularly those interested in the HVAC and refrigeration space. The company has strong fundamentals, demonstrated by its high return on capital employed (ROCE) of 31.21% and its robust compound annual growth rate (CAGR) of 18.5%. For long-term investors, KRN’s ability to consistently generate strong returns on capital and its strategic focus on growth make it an appealing prospect.

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The company has posted good numbers in DRHP. The company's business is kind of unique and very few companies having this kind of business in big level. the company's cryogenic business can be used in space and defense also, if company explore this vertical too. Company have marquee clients and comes with reasonable P/E, ROE, and EPS. I will recommend to be a long term holder for 2 - 3 years, but one can definitely subscribe this for listing gain.

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Very Expensive IPO with FV of 1 INR.
Avoid such IPOs which have FV of less then 5 INR.

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Avoid

Number from 2019 is making eyebrows up. Total Revenue march ended 2019 is 1062.48 from where it gets PAT of 69.6. Then we look forward to march 2020 where total revenue decreased, assets decreased also borrowing decreased, it looks some one has got the money and left. then every time from march 2020 every quarter decreasing revenue, increasing PAT , looks like planning for IPO raise. its pure OFS. So, you can understand the situation.

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