Monarch Networth Capital has initiated coverage on JNK India, assigning a ‘BUY’ rating with a target price of INR 470, signaling a potential 42% upside from the current market price of INR 331. This marks one of the earliest institutional coverages on the company, positioning JNK India as a strong emerging contender in the capital goods sector, especially in process-fired equipment.
JNK India – The Investment Thesis
JNK India, a leading manufacturer and solutions provider for Process Fired Heaters, Reformers, Cracking Furnaces, Flare Systems, and Incinerator Systems, caters to refineries, petrochemical and fertilizer plants, as well as waste gas handling infrastructure. With robust global credentials and strategic technical backing from its South Korean parent, JNK Global (which owns a 32.56% stake), the company is gaining traction in both domestic and international markets.
The investment theme “Reforming to Fire” hinges on strong tailwinds in petrochemical capacity expansions and import substitution in India, alongside global opportunities across regions like the Middle East, Africa, Russia, and the United States.
Key Highlights of Monarch’s Coverage
- Strong Order Book: As of 31 December 2024, JNK India had a solid order book of INR 1,230 crore, securing growth visibility at least until FY26. Monarch expects new order wins to further bolster revenues for FY27 and FY28.
- Solid Execution and Scalability: JNK India has a proven execution track record and is now individually qualifying for larger projects. The company is also adding new global licensers like Lummus (Reliance project) and KBR (USA) to its client base, in addition to established partners such as EIL and L&T.
- One-Stop-Shop Advantage: JNK is one of just three Indian firms capable of manufacturing all heating equipment and waste gas handling systems, giving it a distinct edge over competitors such as BHEL, which focuses more on PSU-specific projects.
- Global Parent Advantage: Technical and bidding support from JNK Global helps JNK India participate in high-value international orders, leveraging the parent’s track record, scale, and net worth.
Strong Demand Tailwinds
According to Monarch, rising domestic demand due to increasing per capita consumption, combined with expansion plans by IOCL, BPCL, ONGC, and Petronet, are expected to fuel substantial growth. In fact, Monarch estimates that if JNK India simply maintains its current market share, demand from announced domestic projects alone could double its FY25 estimated revenue.
Simultaneously, a series of overseas projects—especially in petrochemicals and waste gas handling—are expected to meaningfully augment the company’s order book in coming years.
Financial Performance
Monarch Capital projects an impressive financial trajectory for JNK India:
| Metric | FY24 | FY25E | FY26E | FY27E |
| Revenue (INR Cr.) | 480.2 | 525.9 | 731.0 | 840.6 |
| EBITDA Margin (%) | 20.7 | 12.7 | 15.8 | 16.4 |
| Adj. PAT (INR Cr.) | 62.6 | 46.1 | 88.6 | 104.1 |
| Adj. EPS (INR) | 12.9 | 8.3 | 15.9 | 18.7 |
| ROE (%) | 26.7 | 12.8 | 15.7 | 16.0 |
| PE Ratio (x) | 26.7 | 40.0 | 20.8 | 17.7 |
These forecasts imply a Revenue/EBITDA/PAT CAGR of 21%/12%/19% over FY24–FY27, driven by a mix of secured orders, new bookings, improved margins, and operating leverage. The removal of one-time IPO-linked ESOP costs and a capital-light model further boost the financial appeal.
Valuation & Comparables
Monarch has valued JNK India at 25x FY27E PAT, which is a 30% discount to its listed peer Thermax—providing room for valuation rerating. At the current market price of INR 331, JNK trades at a relatively attractive 20.8x FY26E and 17.7x FY27E PE, reinforcing the upside potential.
JNK India Post-IPO Performance
JNK India launched its IPO on 23 April 2024, with a total issue size of INR 649.47 crore, comprising both a fresh issue and an offer for sale (OFS). The IPO received strong investor interest and was oversubscribed by 28.04 times. The stock made an impressive debut, listing at a premium with a gain of 67.36% over its issue price. However, despite the strong listing, the stock tanked nearly 58% from its highest closing price of INR 882.65 per share. Currently, it is trading at a discount of 12% from its allotment price of INR 415 per share.
Conclusion
This initiation note comes at a time when institutional coverage on JNK India is sparse, offering early investors a high-growth, niche industrial play backed by strong execution and global credibility. Monarch’s report also reminds investors of the solid gains made during JNK’s IPO, which had seen strong retail interest and easy allotments.
With the macro environment favoring capex in energy, refining, and petrochemical sectors, and JNK’s ability to ride both domestic and global demand, the BUY call with a Target Price of INR 470 looks grounded in both strategic positioning and financial robustness. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
Disclaimer: This content is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell.