About Shree Refrigerations
Incorporated in 2006 in Pune, Shree Refrigerations manufactures chillers, refrigeration and air-conditioning appliances, and other HVAC components. Its manufacturing facility is in Karad, Maharashtra. The company also provides precision fabrication, installation, maintenance and repair services, and primarily supplies HVAC systems to the Indian Navy, as well as chillers to sectors such as pharmaceuticals and chemicals.
Investment Rationale
- Order book and visibility: The company reported an order book of INR 231 Cr. as on 25-May’25, of which INR 152 Cr. was to be completed in FY26. It also reported further orders worth INR 161 Cr. after IPO listing.
- FY26 growth estimate: The note estimates FY26 top-line growth of upwards of 50%. The IPO proceeds table refers to FY26 revenues of INR 165 Cr. in its discussion of trade receivables projections.
- Data-centre cooling opportunity: The company has an MoU-based association with Smardt Chillers Pte Ltd. for oil-free chillers for data-centre cooling. It expects this vertical to account for 10-15% of total revenues over the next 3 years.
- Product efficiency: The note states Smardt chillers are 20%-50% more energy efficient than conventional oil-lubricated chillers, a feature it identifies as important for data centres.
- Defence registrations and experience: The company holds defence-related registrations, including a Warship Project registration valid till 23-Feb’28. Its management team includes leaders with experience in the Indian Navy, shipbuilding, heavy engineering and defence.
Business and Revenue Mix
The business has three verticals: chillers, fabrication, and other products and services. Chillers are mainly used in the marine sector, where they support crew comfort, operational efficiency and temperature control for electronic systems. Fabrication covers customized precision-engineered components; the company handles sheet thicknesses up to 5mm and uses third parties for thicker work. Other products and services include test equipment, chiller spare parts, warranties, annual maintenance, and repair.
Revenue concentration: Marine chillers generated INR 82.8 Cr. or 83.9% of FY25 segmental revenue. Government customers represented 76.8% of FY25 revenue, while Maharashtra and West Bengal accounted for 36.1% and 42.5% of revenue, respectively.
Shree Refrigerations Key Financials
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenues | 51 | 80 | 99 |
| % Y-o-Y | 58.8% | 22.9% | |
| Gross Mar % | 52.3% | 50.1% | 49.3% |
| EBITDA % | 23.5% | 30.1% | 27.3% |
| PAT % | 5.0% | 12.7% | 12.7% |
| CFO/EBITDA | (37.5%) | (21.4%) | (92.7%) |
| Debt/Equity | 0.71x | 0.60x | 0.35x |
| NWC (Days) | 370 | 379 | 464 |
Revenue increased across the three reported years, while the CFO/EBITDA ratio remained negative and NWC days rose to 464 in FY25.
Valuation and Target Price
The note lists a CMP of INR 251.75, a market capitalisation of INR 897 Cr. and a PE ratio of 71.1x. It also shows a price at recommendation of INR 177.00/-. No target price, upside or explicit rating is stated.
- INR 251.75
- CMP
- INR 897 Cr.
- Market capitalisation
- 71.1x
- PE ratio
- INR 177.00/-
- Price at recommendation
Shareholding
| Particulars | Pre-IPO | 06-Aug’25 |
|---|---|---|
| Promoter & Promoter Group | 56.61% | 44.60% |
| Public | 43.39% | 55.40% |
| Total | 100.00% | 100.00% |
Company listed on BSE-SME on 31-Jul’25. M.Cap at IPO was INR 445 Cr. priced at INR 125 per share. Fresh Issue of INR 94.5 Cr. & OFS of INR : 22.8 Cr.
Management
Promoter and Managing Director Mr. Ravalnath Gopinath Shende leads the company, with experience across sales, manufacturing, operations and management. The note says Mr. Shende and his family oversee the company’s financials and overall management. Other leaders cited include Whole-time Director Mr. Sunil Kaushik, with over 35 years of experience in the Indian Navy and shipbuilding projects, and independent directors with backgrounds in heavy engineering, defence, aerospace, finance, internal audit and the Indian Navy.
Key Risks
- Working capital-intensive operations: Longer collection and inventory holding periods are linked to the nature of the industry. Cash flow from operations has yet to turn positive.
- Tender-driven competition: Orders are awarded through tenders, with competition to be the L1 bidder.
- Raw material prices: Steel prices are volatile, and contracts do not have price-adjustment clauses.
Our View
The note’s main positives are the reported order book, expected FY26 growth and the planned entry into data-centre cooling. These sit alongside working-capital pressure, negative operating cash flow and tender and input-cost risks. The note provides market data but does not state an explicit rating or target price.