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The company manufactures fin-and-tube heat exchangers, condensers, evaporators and related coils for heating, ventilation, air conditioning, and refrigeration (HVAC&R) industry. In Q1FY26, the company delivered revenue growth of nearly 20 per cent year-on-year, reaching `115 crore. However, net profit stayed flat at `12 crore, the same as in the year-ago quarter. While the company benefits from strengths such as robust client relationships and expanding product offerings, certain risks remain. Sharp fluctuations in key input prices, along with forex volatility on imports and potential supply chain disruptions, could weigh on profitability. A major share of revenue comes from a few key clients, making the company vulnerable to order cutbacks. Additionally, its exposure to the HVAC and Construction industries ties performance to cyclical demand and broader economic trends. The stock looks overvalued, trading at a PE of 100x versus the industry average of 55x and well ahead of peers. 

In contrast, several other listed players offer more attractive valuations alongside stronger return potential. Given this backdrop, the investment case for holding onto this stock weakens. Hence, we recommend SELL. 
 

The company is the exclusive national master franchisee for Burger King in India. It holds exclusive rights to establish, operate, and franchise Burger King outlets. Despite showing a notable uptick in revenue over the past few quarters, the company has been grappling with persistent losses for several years. Compounding the concern is a significant increase in its interest burden, as borrowings have doubled from `900 crore in FY21 to over `1,800 crore in FY25, putting further pressure on profitability and cash flows. Investor confidence may also be rattled by a sharp decline in promoter holdings, which plunged from 40 per cent in June 2023 to just 11 per cent by June 2025. The QSR sector is facing multiple challenges that could moderate its growth in the near term. Rising input costs, including food commodities and packaging, combined with higher labour expenses, are putting pressure on margins. Shifts in consumer preferences toward healthier or home-delivery options are also altering demand patterns. While the appetite for convenient, affordable dining continues to support the sector, these cost and behavioural pressures make the trajectory of growth over the coming quarters uncertain.Hence, we recommend SELL.
 

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