JNK India Stock Listing Gains: Maharashtra based leading heating equipment company JNK India Limited (JNK India IPO) announced its listing day today (JNK India Listing) but has made investors happy. The company’s stock was listed at Rs 620 compared to its IPO price of Rs 415, while within a short time it was listed at Rs 708 (JNK INDIA Stock Price reached at. That means investors have got 70 percent return on the listing day. The IPO had received a strong response from investors, while there was a craze for its unlisted stock in the gray market also.
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Subscribed more than 28 times (JNK India Subscription)
The IPO of JNK India Limited was subscribed 28.46 times overall. 50 percent of the IPO was reserved for Qualified Institutional Buyers (QIB) and it was subscribed a total of 74.40 times. Whereas 35 percent share was reserved for retail investors and it was filled 4.20 times. Whereas 15 percent share was reserved for non-institutional investors and it was filled 23.80 times.
What should investors do?
Swastika Investmart Ltd. Shivani Nyati, Head of Wealth, JNK India Limited, says that process heating equipment manufacturer JNK India Limited has made a great debut on the stock exchanges. The listing fetched a premium well above the 30 per cent premium estimated by the gray market, reflecting investor confidence in JNK India’s future prospects. Although there may be some volatility after the initial surge, strong fundamentals and positive outlook indicate long term potential. Existing investors can hold their shares with stoploss at Rs 560 and keep a close eye on the performance.
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Company Strengths
• Established track record with diverse customer base
• Better positioned to capture sector tailwinds through performance
• Diversification of product portfolio to meet the needs of different sectors.
• Improved financial performance reflecting strong order-book, revenue visibility for last three financial years
• Skilled and experienced promoters and management team, strong employee base.
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Risks and concerns
• General slowdown in global economic activity
• Unfavorable government policies and regulations
• Sectoral revenue concentration risk
• Slow expansion into new business areas.
• Working capital intensive operation
• Difficulty maintaining profitability
• Unfavorable forex rates
• Increasing competition
(Source: Choice Broking)
what does the company do
This Maharashtra based company manufactures heating equipment, which is used in process industries like oil refineries and petrochemical plants. The company also provides its services in the international market. The company works from design to installation of equipment.
company financials
The company’s revenue, expenditure and PAT in FY 2021 were Rs 138.45 crore, Rs 115.65 crore and Rs 16.48 crore. This increased to Rs 297.13 crore, Rs 249.31 crore and Rs 35.98 crore in FY 2022. In the financial year 2023, these figures were Rs 411.55 crore, Rs 348.83 crore and Rs 46.36 crore. Whereas in the first 9 months of FY 2024, the company’s revenue, expenditure and PAT have been Rs 256.76 crore, Rs 196.07 crore and Rs 46.21 crore. That means the company is performing better on the profit front.
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