Shree Refrigerations Bags New Order from the Indian Navy; Also Partners with Danfoss LLC

Synopsis: The stock recovered 3 percent from lows supported by a Danfoss partnership, first regional service advantage, and around Rs. 2.42 crore Indian Navy order, improving business visibility and investor sentiment.

The shares of this microcap majorly engaged in manufacturing of chillers, refrigeration and air-conditioning appliances, and components associated with the Heating, Ventilation, and Air Conditioning (HVAC) industry, recovered upto 3 percent after announcing its strategic partnership to boost operations and growth.

With the market capitalization of Rs. 673 Crores, the shares of Shree Refrigerations Ltd  has recovered upto 3 percent to Rs. 189.45 per share from the days low of Rs. 185 per share  and is trading at a P/E of 109 whereas industry P/E stands at 28.1

News

Shree Refrigerations Ltd has partnered with Danfoss LLC to become an authorised service partner for Turbocor compressors. This makes it the first and only authorised service centre for these compressors in the region, giving it a clear edge over competitors. This exclusivity also creates a strong entry barrier, as others may find it difficult to enter this space, positioning the company as the only local hub for such repairs.

The agreement allows the company to handle advanced compressor repairs locally,as an authorised service partner which can help improve margins due to its specialised services and lower dependence on imports. At the same time, being associated with a global player like Danfoss improves the company’s credibility and can open up more opportunities for future business and partnerships. 

Additionally, the company has secured an order worth around Rs. 2.42 crore from the Indian Navy to supply spare items for a Class B ship, which strengthens its order book and gives better revenue visibility. With its presence now spread across both industrial services and defence-related supplies, the company is reducing reliance on a single segment and building a more stable and balanced business. 

Financials 

Shree Refrigerations Ltd majorly engaged in the manufacturing of chillers, refrigeration and air-conditioning appliances, and components associated with the Heating, Ventilation, and Air Conditioning (HVAC) industry.The company is expanding its manufacturing capacity with a 50,000 sq. ft. greenfield project, scalable to 100,000 sq. ft., improving delivery speed and integration. It is also entering high-growth sectors like data centres, targeting strong demand and aiming for ~50 percent  CAGR over 3–5 years. 

Year on Year analysis:  Revenue from operations has decreased  from Rs. 50.96 Crores to Rs. 50.39 Crores, down 1.1  percent. Operating profit has decreased from Rs. 15.45 Crores to Rs. 5.66 Crores, down 63.3  percent and net profit has decreased from Rs. 8.12 Crores to Rs. 1.57 Crores, down 80.66 percent. 

Half Yearly analysis: Revenue from operations has decreased from Rs. 47.76 Crores to Rs. 50.39 Crores, up 5.5 percent. Operating profit has decreased from Rs. 11.51 Crores to Rs. 5.66 Crores, down 50.82 percent and net profit has decreased from Rs. 4.50 Crores to Rs. 1.57 Crores, down 65.11 percent. 

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