- ICICI Securities initiates coverage of KRN Heat Exchangers with a Buy rating and Rs 820 target price
- KRN benefits from strong HVAC sector demand across residential, commercial, and industrial markets
- Capacity expansion is expected to drive volume growth and improve product mix for KRN
KRN Heat Exchangers shares are in focus heading into Monday's trade after ICICI Securities initiated coverage with a ‘Buy' rating and set a target price of Rs 820, citing improving growth visibility and multiple margin levers over the medium term.
In its latest note, ICICI Securities said KRN is well-positioned to benefit from structural tailwinds in the HVAC (heating, ventilation and air-conditioning) sector, which are supporting steady demand across residential, commercial, and industrial applications. The firm said that these industry tailwinds provide long-term growth visibility, especially as India's cooling penetration rises and energy-efficient solutions gain traction.
A key pillar of the investment thesis is KRN's capacity expansion, which ICICI Securities believes will anchor the company's next leg of growth by enabling higher volumes and better product mix.
On the profitability front, the brokerage pointed to policy-led incentives such as PLI and RIPS, which could provide margin tailwinds, alongside improving operating leverage as utilisation ramps up.
ICICI Securities also flagged strategic optionality from KRN's acquisition of the bus air-conditioning division of SRSPL. The deal could expand KRN's addressable market beyond room and commercial cooling into the automotive HVAC segment, opening incremental revenue streams.
Additionally, the brokerage sees potential for KRN to build a stronger presence in railway HVAC, a segment that can offer multi-year revenue visibility given long procurement cycles and recurring replacement demand.
ICICI Securities expects a combination of sectoral demand, execution on capacity expansion, and supportive incentives to drive growth and aid margin expansion, underpinning its positive stance on the stock.
Also Read: KRN Heat Exchanger Targets Capacity Expansion; Eyes Export Growth And Margin Boost
What Does KRN Heat Exchanger Do?
KRN Heat Exchanger & Refrigeration Ltd. is a leading manufacturer of heat exchangers, cooling coils, and advanced HVAC and refrigeration solutions, headquartered in Neemrana, Rajasthan, India.
With modern manufacturing facilities, skilled teams, and a focus on engineering innovation, KRN delivers products that meet the evolving demands of HVAC, refrigeration, automotive, power, marine, food processing, and industrial sectors.
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