This Stock Turned Multibagger Within 3 Months, Surging 20% in Two Days: What's Driving the Rally?
Renowned investor Mukul Agrawal adds 10 lakh shares of KHERL to his portfolio in the December quarter, as the stock soars 308% since its October 2024 IPO debut
KRN Heat Exchanger and Refrigeration (KHERL) has been a standout performer in the stock market, with its stock surging 8.57 per cent to hit a 52-week high of Rs 899.5 before closing at Rs 844.8, up 1.97 per cent on the BSE in Tuesday’s trade. The recent rally is fueled by strong buying interest after ace investor Mukul Agrawal acquired a 1.61 per cent stake in the company during the December quarter.
Since its IPO debut in October 2024, the stock has delivered an extraordinary 308 per cent return. KHERL made a remarkable entry on Dalal Street, listing at Rs 480 on the NSE—a 118 per cent premium over its issue price of Rs 220. On the BSE, the stock opened at Rs 470, reflecting a 114 per cent premium. The impressive post-IPO rally has underscored strong investor confidence in the company’s growth prospects.
Mukul Agrawal, a renowned investor, added 10 lakh shares of KHERL to his portfolio during the December quarter, as revealed by the latest shareholding pattern. This represents a 1.61 per cent stake in the Small-Cap company, further boosting investor sentiment and confidence in the stock.
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The company has also demonstrated robust financial performance. For Q2FY25 (July-September 2024), KHERL reported a 42.9 per cent jump in net profit to Rs 12.31 crore compared to Rs 8.61 crore in the same period last year. Revenue from operations grew by 27.9 per cent to Rs 91.09 crore, while total income increased by 28.4 per cent to Rs 92.54 crore.
The Board of Directors is scheduled to meet on January 27, 2025, to approve the unaudited standalone and consolidated financial results for the quarter and nine months ending December 31, 2024.
KRN Heat Exchanger & Refrigeration Ltd. specializes in manufacturing fin and tube-type heat exchangers for the HVAC and refrigeration industries. Its product portfolio includes evaporator and condenser coils, fluid and steam coils, condensing units, air-cooling units, headers, copper parts, and sheet metal components. The company, founded by Santosh Kumar Yadav on August 25, 2017, is headquartered in Alwar, India.
With a market capitalization of Rs 5,265 crore and a P/E multiple of 132x, the stock is trading at a premium valuation. While its growth trajectory has been exceptional, investors are advised to assess the high valuation before taking fresh positions.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.