📌 At a Glance
JNK India Ltd is in the business of process-fired heaters, cracking furnaces, and other heat-transfer equipment, and now wants a piece of the hydrogen + solar EPC pie too. The company has shown strong growth since FY20, but FY25 was… mid. With slowing margins, a 261-day debtor cycle, and a 62x P/E, the stock needs more than just heat — it needs a spark.
1. 🧪 WTF Do They Even Do?
JNK India is your industrial boiler room boss:
- Builds process-fired heaters, reformers, furnaces for oil & gas, chemical, and power industries.
- Expanding into:
- Flare Systems & Incinerators
- Hydrogen Production & Distribution Systems
- Solar EPC
So yes, they’re kind of like the Shaadi.com of industrial heating — trying to match gas with fire, now trying solar with subsidies.
2. 📊 Financials Overview
FY25 Snapshot:
| Metric | FY24 | FY25 |
|---|---|---|
| Revenue | ₹477 Cr | ₹473 Cr |
| EBITDA | ₹101 Cr | ₹46 Cr |
| Net Profit | ₹62 Cr | ₹30 Cr |
| EPS | ₹12.76 | ₹5.40 |
| OPM | 21% | 10% |
| ROCE | 46% | 15% |
| ROE | 13% | 8.6% |
💥 Key Issues:
- PAT down 51% YoY 📉
- OPM got halved.
- CFO: -₹66 Cr (vs already negative in FY24)
- Profit CAGR 5Y: 28% – good, but regressing.
3. 💸 Valuation – Cheap, Meh or Crack?
| Metric | Value |
|---|---|
| CMP | ₹339 |
| Market Cap | ₹1,895 Cr |
| P/E (TTM) | 62.9x |
| Book Value | ₹90.2 |
| P/B | 3.75x |
| EV/EBITDA | ~36x |
🤓 For context:
- Average P/E for EPC Industrial peers: 25–35x
- JNK is pricing in a hydrogen dream that hasn’t even been lit yet 🔋
🧮 FV Range:
Using 25–30x on normalized EPS (₹6–₹7 range):
➡️ ₹150 – ₹210
Current price = LOL. 🚀
4. 🛠️ What’s Cooking – Orders, News, Triggers
- 🗞️ Q4FY25 Revenue: ₹200 Cr, PAT ₹13 Cr
- 📞 Concall notes:
- 2.5% FY25 revenue growth
- FY26 guidance: 40–50% revenue growth ⚠️ (ambitious)
- EBITDA margin guidance: 14–16%
- 📦 Order book: ~₹600 Cr+
- 💡 Hydrogen & Renewable EPC to contribute more from FY26
5. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Debt | ₹19 Cr |
| Reserves | ₹492 Cr |
| Net Worth | ₹503 Cr |
| Total Liabilities | ₹788 Cr |
| Fixed Assets + CWIP | ₹35 Cr |
| Net Cash Position | Positive (post IPO 💸) |
📉 Working capital: 215 days
🧻 Debtors: 261 days — clients forgetting to pay?
6. 💰 Cash Flow – Sab Number Game Hai
| Year | CFO | FCF | Comment |
|---|---|---|---|
| FY24 | -₹10 Cr | -₹25 Cr | bad start |
| FY25 | -₹66 Cr | -₹80 Cr+ | ultra worse |
🔋 Raised ₹218 Cr from financing (read: IPO).
But if this burn rate continues, they’ll need another one soon.
7. 📉 Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 15% |
| ROE | 8.6% |
| Asset Turnover | 0.6x |
| Cash Conv. | 188 days |
| OPM | 10% |
All pointing south. But guided to bounce back in FY26.
8. 📊 P&L Breakdown – Show Me the Money
- Other Income: ₹18 Cr 😶🌫️ (inflating profit?)
- Finance cost up: ₹14 Cr
- Operating leverage missing in FY25
- EPS collapsed from ₹12.8 to ₹5.4
9. 🧻 Peer Comparison
| Company | P/E | ROCE | OPM | MCap |
|---|---|---|---|---|
| JNK India | 63x | 15% | 10% | ₹1.9K Cr |
| Kaynes Tech | 141x | 14% | 15% | ₹41K Cr |
| Tega Industries | 53x | 17% | 21% | ₹10.6K Cr |
| Jyoti CNC | 72x | 24% | 27% | ₹23K Cr |
| Syrma SGS | 63x | 12% | 8.6% | ₹10.8K Cr |
⚖️ JNK isn’t the worst on paper, but at ₹339 and 63x PE with decelerating growth — it isn’t the bargain it pretends to be.
10. 🧠 Misc – Promoters, Shareholding, Other Stuff
| Category | Holding (Mar 2025) |
|---|---|
| Promoter | 67.79% |
| DII | 17.87% |
| FII | 3.06% |
| Public | 11.29% |
- 📉 Slight drop in DII + FII holding
- Shareholders: 55,433 — active retail base
- No major insider buying in last 2 quarters
🧠 EduInvesting Verdict™
✅ Strong niche + margin expansion potential
✅ Low debt, positive cash on books
🤖 EPC + Green Energy = SEXY NARRATIVE ✅
BUT…
❌ EPS halved
❌ Cash flows garbage
❌ P/E unjustified
❌ Working capital choking
This feels like a classic “PE rerating on green energy hope” story. But if FY26 doesn’t deliver 40–50% topline + 15% EBITDA… the stock could go from furnace to freezer.
🎯 FV Range: ₹150 – ₹210
CMP: ₹339 = Hot air.
Tags: JNK India Ltd, hydrogen EPC, process-fired heaters, smallcap stocks, renewable energy India, IPO analysis, FY25 results, BSE Smallcap, engineering services, capital goods
✍️ Written by Prashant | 📅 3 July 2025
