Green hydrogen stocks JNK India, should I invest in the newly added stock in India. Let us find out the best insights and analysis before investing in the stock.
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Green Hydrogen Stocks JNK India
Green hydrogen is a buzzword now across the globe. Governments worldwide are fighting environmental crises, global warming as well as increasing demand for energy to boost development. The answer to the trade-off between economic development and environmental concern is green energy. Green energy such as renewable energy is the right answer to deal with climate change while ensuring global energy security.
Green Hydrogen, the hydrogen energy generated using renewable energy, has been gaining significant importance in the global energy resource map to achieve net carbon zero as per the target.
Many companies are working on different parts of the supply chain to support this goal and to gain out of this emerging trend. Towards this end, green hydrogen stocks are gaining attention from investors worldwide.
Here is a newly listed one of the best green hydrogen stocks in India that you need to analyze for investment or business purposes.
Green Hydrogen Stocks in India JNK India
Business Model of JNK India Ltd.
JNK India Ltd. is one of the leading Heating Equipment companies in India. The company also has capabilities in thermal designing, engineering, manufacturing, supplying, installing, and commissioning process-fired heaters, reformers, and cracking furnaces.
Analyzing Porter’s five forces for this industry, the entry barrier in this industry is very high. It is a capital-oriented industry with a high learning curve. The selection of suppliers for process fired-heater requires strong credentials and references as energy efficiency is one of the key performance indicators of the end users such as refineries, petrochemicals, and, fertilizer plants. Hence, there are very limited suppliers of this equipment globally. Besides, all these companies have to adhere to certain regulatory policies of the government.
Advantage of JNK India Ltd. in heating equipment market in India
The heating equipment market in India is comprised of only seven companies. In terms of revenue, JNK India and Thermax are the most prominent leaders.
Heating equipment company in India
| Heating equipment suppliers | Head Quarter | Process Fired Heater | Reformers | Cracking Furnace |
|---|---|---|---|---|
| JNK India | India | Yes | Yes | Yes |
| Thermax | India | Yes | ||
| Bharat Heavy Electrical Ltd. | India | Yes | ||
| Esteem Projects | India | Yes | ||
| Heurtey Petrochem Solutions | France | Yes | Yes | Yes |
| TR Engineering | Spain | Yes | ||
| ITT Engineering India | Italy | Yes | Yes | Yes |
Market share of JNK India Ltd.
JNK India is a subsidiary of JNK Heaters Co., Ltd, a KOSDAQ-listed company. JNK Heaters was established in 1998 and has been engaged in the design, manufacturing, installation, and maintenance of industrial furnaces.
In terms of revenue, JNK India is the largest company in India with a revenue of more than INR 4,000 million in FY23. In terms of volume, the company is currently installing 25 units, which is higher than any of its competitors currently executing in the Indian market. JNK India Ltd. has a market share of approximately 27% in the Indian Heating Equipment market, in terms of new order booking in Fiscal 2023.
JNK India Limited a green hydrogen company?
Indian Government aims to transform India into an energy-independent nation by calendar year 2047. Green hydrogen as an energy source will play an active role as an alternate fuel to petroleum/ fossil-based products.
Heating equipment is one of the major parts of green hydrogen power plants. JNK India Ltd. is the leading provider of heating equipment for green hydrogen projects in India. While contributing to the National green hydrogen mission in India, JNK India has set up two refueling stations at the Indian Oil R&D Centre – one each at the Indian Oil R&D Centre, Faridabad, and the National Institute of Solar Energy, Gurugram.
JNK India IPO Good or Bad
JNK India Limited raised capital through an Initial public offering. The JNK IPO was opened from April 23, 2024, to April 25, 2024, to raise a capital of ₹649.47 Cr. The fresh issue in the IPO was ₹300.00 Cr while the offer for sale was ₹349.47 Cr. The range of JNK India’s share price was ₹395 to ₹415 per share. The JNK India share listed on exchanges on April 30, 2024 at a premium of over 50% at 660 level.
About 4,694,989 equity shares were offered to anchor investors. Kotak Mahindra, HDFC mutual fund, Nippon Life India, Goldman Sachs funds, and Mirae asset flexi fund were among the major anchor investors in the JNK India IPO process.
The main objective of the fresh issue in JNK India Limited IPO was to fund the working capital requirements of the company.
JNK India Ltd Share Price Analysis
JNK India Limited is one of the leading heating equipment manufacturers in India. The company provides end-to-end services in terms of power generation of refineries. The company set up the complete project on behalf of its customers and commissioned the projects. JNK India having strong parents completes the project in time.
Looking at the prospects of green hydrogen in India, hydrogen will work for trucks and buses for intra-city and inter-city applications. To start with, hydrogen with fuel dispensing stations ready for refueling in every 200 km range is required every 200 km on main highways.
India also aims to become an exporter of hydrogen to Japan, South Korea, and Europe.
Considering the above, the JNK India ltd Share Price target is expected to be strong in the future. Let us look at the financial analysis below before concluding the analysis.
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JNK India pvt ltd Turnover
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets | 453.39 | 337.78 | 268.32 | 125.12 |
| Revenue | 256.76 | 411.55 | 297.14 | 138.45 |
| Profit After Tax | 46.21 | 46.36 | 35.98 | 16.48 |
| Net Worth | 168.56 | 122.17 | 72.18 | 36.82 |
| Reserves and Surplus | 158.88 | 112.57 | 62.58 | 36.22 |
| Total Borrowing | 56.73 | 33.76 | 5.99 | 8.95 |
JNK India Ltd Share Price Technical Parameters
| JNK India Ltd Share Price Technical Parameters | Values |
|---|---|
| ROE | 31.79% |
| ROCE | 34.73% |
| Debt/Equity | 0.34 |
| RoNW | 31.79% |
| P/BV | 11.92 |
| PAT Margin | 18.24% |
| Pre IPO EPS | 9.58 |
| Post IPO EPS | 11 |
| Pre IPO PE | 43.32 |
| Post IPO PE | 37.46 |
JNK India Ltd Share Price Good or bad to invest
JNK India ltd share price is listed at a premium. It is advisable to wait for the JNK India share price to settle down before investing in the company.
JNK India limited is engaged in heating equipment manufacturing and is also an end-to-end service provider in setting up power plants. Its equipment is used in different end-user applications such as refineries, power plants, green hydrogen plants, etc.
Attractive JNK India Pvt ltd turnover
As per the JNK India Pvt ltd turnover, the company has been generating strong revenue from its operation. Profit after tax has also gone up by three times from Rs 16.48 crore in FY2021 to Rs 46.36 Crore in FY 2023 ended on 31 March 2023. The company is also generating over 30% of return on equity and return on capital employed.
JNK India limited generated Rs 11 earnings per share with 37.46 PE. This reflects the fundamental strength of the company. Looking these factors JNK India ltd share price looks attractive.
Final words
I like the sector where the company operates, and the products and services of the company. Again, very limited players with a strong entry barrier. That makes the JNK India ltd share price attractive to me. If I do not get the IPO allotment, I will wait till the JNK India ltd share price settles down before investing in the company.
Hope this analysis helps to understand the company as well as the industry that the company belongs to. Please write to me or comment if you like this. You can also suggest if any point is missing in the analysis.
Frequently Asked Questions
Is JNK India Limited a listed company in India?
Yes, JNK India Limited is listed on Indian stock exchanges on date April 30, 2024.
Is JNK India IPO good or bad?
JNK India IPO is good to invest. Refer to the detailed analysis about JNK India Limited.
Is JNK India manufacturers equipment related to green hydrogen?
Yes, the heating equipment manufactured by JNK India is used to set up green hydrogen plants.
Is it good to invest in JNK India Ltd Share price?
It is important to understand the company before investing in its share. JNK India share is good to invest but do your analysis after reading the article carefully before taking a call on investing.
JNK India Ltd Address
Unit No. 203, 204, 205 & 206, Opposite. TMC Office
Centrum IT Park, Near Satkar Hotel, Thane -West, Thane
400 604, Maharashtra, India
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