JNK India Limited IPO

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In the intricate and demanding world of process industries, the company stands out as a preeminent manufacturer of process fired heaters, reformers, and cracking furnaces. These pieces of Heating Equipment are essential in various sectors, including oil and gas refineries, petrochemical, and fertilizer industries. With a robust presence in both the domestic and international markets, they are one of the key players in the Indian heating equipment industry, closely competing with giants like Thermax Limited.

Product Portfolio

Their product range includes:

  • Process Fired Heaters: These are used to heat fluids or gases directly using a fuel source like natural gas or propane.
  • Reformers: These devices convert hydrocarbons such as natural gas or naphtha into synthesis gas (syngas), which is a mixture of hydrogen and carbon monoxide.
  • Cracking Furnaces: Employed to break down large hydrocarbon molecules into smaller ones, these furnaces are critical in producing a variety of products, such as fuels, chemicals, and plastics. This process is known as cracking and involves the use of a catalyst and high temperatures.

Capabilities and Services

Their capabilities extend beyond manufacturing to include thermal designing, engineering, supply, installation, and commissioning of Heating Equipment. They cater to a wide range of industries such as hydrogen, methanol plants, and more, demonstrating our versatility and technical proficiency.

Global and Domestic Reach

Geographically, their project footprint is extensive:

  • Domestic Projects: Completed in regions like Andhra Pradesh, Assam, Bihar, Karnataka, and more.
  • International Projects: Noteworthy projects in Nigeria, Mexico, Oman, Algeria, and Lithuania, amongst others.

They pride themselves on successfully executing projects in challenging locations worldwide, which not only showcases their logistical capabilities but also their commitment to delivering excellence regardless of geographical boundaries.

Conclusion

Their company is not just a manufacturer of Heating Equipment; they are a partner in the industrial growth of their clients across the globe. By continually enhancing their product offerings and expanding into new technology areas like green hydrogen, they are setting the stage for a sustainable industrial future. With a proven track record of safety, innovation, and operational excellence, they are geared towards maintaining their leadership in the industry and exploring new horizons in the coming years.

Objects of the JNK India Limited IPO:

The company intends to use the net proceeds from the issue to finance the following objects: i. Working capital requirements; and ii. General corporate purposes.
DRHP of JNK India Limited IPO
RHP of JNK India Limited IPO

JNK India Limited IPO Details:

Open Date: Apr 23 2024
Close Date: Apr 25 2024
Face Value: ₹ 2 Per Equity Share
Lot Size: 36 Shares
Issue Price: ₹ 395 - 415 Per Equity Share
Listing At: NSE,BSE
Listing Date: Apr 30 2024

Promoters And Management:

Arvind Kamath is the Chairperson and Whole Time Director of the Company. He is also the Promoter of the Company. He has been associated with the Company since August 16, 2010. He holds a bachelor’s degree in chemical engineering from the Mangalore University, Mangaluru, Karnataka. He was previously associated with Sulzer Pumps India Private Limited, Chetra Seals Private Limited, Mascot Flowtech Private Limited and Mascot Global Private Limited. He has an extensive experience in the capital equipment industry. Goutam Rampelli is the Whole Time Director of the Company. He is also the Promoter of the Company. He has been associated with the Company since August 31, 2015. He has successfully completed his bachelor’s degree in chemical engineering from the National Institute of Technology (formerly Regional Engineering College), Warangal, and also completed his master’s degree in chemical engineering from the Indian Institute of Technology, Bombay. He was previously associated with Larsen and Toubro Limited and L&T Hydrocarbon Engineering Limited. He is also a member of Institute of Directors. He has an extensive experience in the fired heaters and reformer packages industry. Dipak Kacharulal Bharuka is a Whole Time Director and Chief Executive Officer of the Company. He is also the Promoter of the Company. He has been associated with the Company since March 14, 2011. He is also associated as a designated partner in NIAA Ventures LLP. He has successfully completed his master’s degree of engineering in Mechanical and Industrial (Machine Design Engineering) from University of Roorkee, Roorkee and Executive Masters in Business Administration from S.P. Jain Institute of Management & Research. He was previously associated with Larsen and Toubro Limited. He has an extensive experience in the fired heaters and reformer packages industry.

Financials of JNK India Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23 9MFY24
Equity Share Capital 6.00 96.00 96.00 96.78
Reserves 362 626 1,126 1,589
Borrowings 90 60 338 567
Trade Payables 249 453 398 614
Other Liabilities 544 1,448 1,421 1,667
Total Liabilities 883 1,961 2,156 2,848
Net Block 8 55 54 84
Capital Work in Progress 0 0 0 14
Other Assets 32 237 270 412
Total NC Assets 40 292 324 511
Receivables 540 1,100 1,144 1,362
Inventory 52 624 821 1,072
Cash & Bank 272 257 472 366
Other Assets 347 410 618 1,223
Face value 2 2 2 2
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23 9MFY24
Sales 1,377 2,964 4,073 2,534
Purchases of Stock In Trade 303 1,503 1,602 1,228
Change in Inventory -48 -573 -196 -252
Other Mfr. Exp 279 704 1,097 445
Employee Cost 326 414 532 255
Other Expenses 264 376 345 188
Other Income 7 7 42 34
Depreciation 19 30 66 40
EBITDA 260 546 735 702
EBITDA Margin 18.89% 18.41% 18.05% 27.72%
Interest 13 38 42 55
Profit before tax 228 478 627 607
Tax 63 118 163 145
Net profit 165 360 464 462
NPM (%) 11.90% 12.11% 11.27% 18.00%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23 9MFY24
Cash From Operating Activity
Profit From Operation 292 557 759 699
Receivable -365 -601 -38 -205
Inventory -48 -573 -196 -252
Payable 175 208 -55 216
Other WC Items 111 917 -391 -467
Working Capital Changes -128 -49 -681 -707
Direct Taxes -50 -119 -150 -84
Net Cash Inflow from Operating Activity 115 389 -72 -92
Cash from Investing Activity
Fixed assets purchased -40 -191 -72 -72
Investments purchased 0 0 0 -100
Investment sold 0 -111 111 100
Other investing items -127 52 -289 11
Net cash inflow from investing activities -167 -249 -250 -60
Cash from Financing Activity
Proceeds from shares 0 0 0 0.78
Proceeds from borrowings 85 24 278 230
Repayment of borrowings -1 -54 0 0
Intrest paid fin -13 -16 -25 -38
Dividends paid -6 -6 -14 -15
Financial liabilities 18 57 13 9
Net Cash Flow 29 145 -71 34

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
JNK India Limited 407 46 8.28 50.1 415 2,323
Thermax Limited 8,090 451 37.79 99.5 4554 54,268
Bharat Heavy Electricals Limited 23,365 477 1.37 N/A 262 91,126
* All the data is as per FY23.

Recommendation on JNK India Limited IPO:

Review and Recommendation of JNK India by team IZ is 5/10. 1. JNK India Limited specializes in the design, engineering, manufacture, supply, installation, and commissioning of process fired heaters, reformers, and cracking furnaces. These types of heating equipment are essential for process industries, including oil and gas refineries, petrochemical plants, and fertilizer industries. They have expanded their product line to include flares and incinerator systems and are actively developing capabilities in the renewable energy sector, focusing on green hydrogen. 2. Product Details: Process Fired Heaters: These heaters are used to heat fluids or gases directly by burning a fuel source like natural gas or propane. Reformers: These devices convert hydrocarbons such as natural gas or naphtha into synthesis gas (syngas), a mixture of hydrogen and carbon monoxide. Cracking Furnaces: Employed to break down large hydrocarbon molecules into smaller ones, these furnaces facilitate the production of fuels, chemicals, and plastics through a process known as cracking. 3. Market Presence: They cater to both domestic and international markets, competing closely with other key players such as Thermax Limited in the Indian heating equipment market. Their projects span across India in states such as Andhra Pradesh, Assam, Bihar, and internationally in locations including Nigeria and Mexico. They have a strong track record of project execution and safety, recognized by multiple certificates of appreciation from industry leaders. 4. Growth and Diversification: In response to increasing market demand and stricter emissions regulations, they have diversified their offerings to include flares and incinerators. They continuously explore inorganic growth opportunities to expand their technology and market presence, particularly in larger markets such as Europe, the Middle East, and Africa. They are also enhancing their capabilities in renewable energy sectors like onsite hydrogen production and solar photovoltaic systems as part of the green hydrogen value chain. 5. The Revenue has Increased from Rs.137 Crores in FY21 to Rs.407 Crores in FY23. 6. The EBITDA has Increased from 26 Crores in FY21 to 73 Crores in FY23. 7. The PAT has Increased from 16 Crores in FY21 to 46 Crores in FY23. 8. As per FY23, CFO/EBITDA is 1.03, As per FY24, EPS is 11.01, 9. Market Capitalization is 2,323 Crore & P/E is 37.71x based on FY24.

Lead Manager of JNK India Limited IPO:

  1. ICICI Securities Limited
  2. IIFL Securities Ltd

Registrar of JNK India Limited IPO:

  1. Link Intime India Private Limited

Company Address:

JNK India Limited Unit No. 203, 204, 205 & 206, Opposite TMC Office Centrum IT Park, Satkar Hotel, Thane-West, Thane - 400604 Phone: +91-22 6885 8000 Email: compliance@jnkindia.com Website: http://www.jnkindia.com/

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