JNK Gets De-Bottlenecking Order From Reliance

JNK India Private Limited, on June 14, 2024, announced the reception of the order for the Gas Cracker Unit (GCU) De Bottlenecking Project by Reliance Industries. The project has been initiated by Reliance Industries Limited’s Nagothane Manufacturing Division (NMD), Maharashtra, and Dahej Manufacturing Division, Gujarat India. The scope of work is Design, Engineering, Procurement, Supply, Complete Site Erection, and providing technical assistance during pre-commissioning, commissioning, and performance guarantee test runs for two Gas Cracking Furnaces. The total valuation of the contract is between Rs.350 Crore and Rs. 500 Crore, as per JNK India’s classification. This mega-order is set to be completed within 21 months. The project holds its importance as enhancing the efficiency and capacity of these GCUs will be a step towards continued growth and innovation in the field of industrial heating equipment and renewable energy solutions.

About the company:

JNK India Private Limited, established in 2010, holds its importance in the manufacturing of heating equipment, including process-fired heaters, reformers, and cracking furnaces, essential for process industries like petrochemicals, fertilizers, and oil and gas refineries. This company is a joint venture with JNK Haeters Company Limited in South Korea. JNKI is known as an Engineering, Procurement, and Construction(EPC) company, that has formed a wholly-owned subsidiary, JNK Renewable Energy Pvt. Ltd., which will implement its EPC projects in solar and other industries.

Company’s Financials and Stock Performance:

For Q4FY24, the consolidated net profit of the company was reported to be Rs.16.65 Crore, a 56.2% YoY increase. Operational revenue surged to Rs.226 Crore in the fourth quarter compared to Rs.107.40 Cr in the corresponding quarter last year. Even though the company sold its shares at Rs.676 on the closing of Friday, the company opened on Monday with a share price of Rs.745.25.

Conclusion: 

With this project in hand, JNK India aims to gain impetus growth in its reputation as a reliable partner in the energy sector. It highlights the company’s ability to fulfill such massive orders and deliver promising results as a small-cap investment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions