Subscribe for Jinkushal Industries Ltd IPO; Ajcon Global

Ajcon Global, Jinkushal Industries Ltd

Jinkushal Industries Ltd is engaged in export trading of new/customized and used/refurbished construction machines in global markets. JKIPL is the largest Non-OEM construction machines exporter with a 6.9% market share. JKIPL is recognized as Three-Star Export house by Directorate General of Foreign Trade (“DGFT”), Government of India. Company have exported construction machines to over thirty (30) countries, including UAE, Mexico, Netherlands, Belgium, South Africa, Australia, and UK. Company primarily operate across three primary business verticals; (i) export trading of customized, modified and accessorized new construction machines; (ii) export trading of used/refurbished construction machines; and (iii) export trading of their own brand ‘HexL’ construction machines (presently in category of backhoe loaders) to cater a diverse international customer base. Company believe that each of these verticals is structured to improve operational efficiency and reach a wide customer base, ensuring that their exported machines align with the required performance standards, durability expectations, and specific application needs. In addition to aforementioned primary business verticals, they also derive a small portion of revenue from (i) their logistics warehouses leasing; (ii) renting of construction machines.

Valuation and Outlook

At the upper price band company is valuing at P/E of 30.1x to its FY25 earnings, with EV/EBITDA of 22.0x and market cap of ₹ 4,644 million post issue of equity shares. We believe that the IPO is fully priced and recommend a “SubscribeLong Term” rating to the IPO.

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