Small-cap company acquires bus air-conditioning division from Sphere Refrigeration Systems
DSIJ Intelligence-1 / 07 Oct 2025/ Categories: Multibaggers, Trending
The company has a market cap of over Rs 5,300 crore with a PE of 100x, an ROE of 17 per cent and an ROCE of 21 per cent.
KRN Heat Exchanger and Refrigeration Limited, through its wholly owned subsidiary KRN HVAC Products Private Limited, has entered a significant expansion phase by signing a Business Transfer Agreement with Sphere Refrigeration Systems Private Limited (SRSPL). This agreement facilitates the acquisition of SRSPL's entire Bus Air-Conditioning division. The move is strategic, aiming to immediately integrate all operations, assets, and employees of the bus air-conditioning business into KRN HVAC, thereby strengthening its presence in the automotive HVAC segment.
This strategic acquisition directly supports KRN’s long-term growth roadmap by expanding its product portfolio within the crucial transport and mobility cooling segment. By integrating this new division, the company expects a positive contribution to its revenue, profitability, and overall market reach in the coming years. It represents an important milestone in KRN’s broader strategy to build a diversified HVAC business catering to industrial, commercial, and mobility applications.
The acquisition positions KRN to capitalise on the rapidly growing demand for passenger comfort, energy efficiency, and sustainable cooling solutions within India’s transportation sector. The company anticipates strong operational synergies by combining SRSPL's established expertise in bus climate control systems with KRN's robust manufacturing capabilities and engineering proficiency in design, production, and distribution.
About the Company
Founded in 2017 in Neemrana, India, KRN Heat Exchanger and Refrigeration Limited is a specialised manufacturer of aluminium and copper fin and tube heat exchangers, including water, condenser, and evaporator coils. The company's products are essential components for OEMs in the HVAC&R industry (heating, ventilation, air conditioning, and refrigeration). Operating from a 1,50,000 square foot factory, KRN boasts an impressive annual production capacity of over 1 million units, with approximately 23 per cent of its output being exported. The firm is supported by a highly experienced engineering team, which leverages over 20 years of industry expertise to deliver customised, durable solutions while maintaining strict adherence to international quality standards.
In FY25, the company reported significant financial results, including consolidated total income of Rs 441.71 crore, EBITDA of Rs 70.51 crore and Net Profit of Rs 52.88 crore. The company has a market cap of over Rs 5,300 crore with a PE of 100x, an ROE of 17 per cent and an ROCE of 21 per cent. The stock has given multibagger returns of over 100 per cent from its 52-week low of Rs 402.40 per share.
Disclaimer: The article is for informational purposes only and not investment advice.