Jinkushal Industries Ltd IPO Review – Price ₹115-121, Financials & How It Compares
Jinkushal Industries Limited, a leading exporter and trader of construction machinery, is launching its mainboard IPO on the BSE and NSE. This public issue is a combination of a fresh issue and an Offer for Sale (OFS), designed to fund the company’s working capital needs and for general corporate purposes. Here’s a detailed breakdown for potential investors. Jinkushal Industries IPO opens 25-29 September 2025 at ₹115-121/share. Exporter of new/customised & refurbished construction machinery, HexL brand backhoe loaders. Read price band, financials & comparison.
Jinkushal Industries Limited – Company Background
Incorporated in 2007, Jinkushal Industries Limited is a Chhattisgarh-based company that specializes in the export and trading of construction machinery. The company is recognized as the largest Indian exporter of non-original equipment manufacturer (non-OEM) construction machines, with a 6.9% market share in this segment.
The company operates on an asset-light model and has three core business verticals:
- Trading and export of new, customized construction machinery.
- Trading and export of used and refurbished construction machinery.
- Export of its proprietary brand, ‘HexL’, which currently focuses on backhoe loaders.
Jinkushal Industries serves a global market, with a presence in over 30 countries through its subsidiaries in the UAE and the USA. The business model of refurbishing used machinery aligns with the global “circular economy” trend and offers a cost-effective alternative to new equipment.
Jinkushal Industries IPO Details & Dates
The Jinkushal Industries IPO is a book-built issue with a total size of ₹116.11 crore. The issue is comprised of a fresh issue of shares worth ₹104.49 crore and an OFS of ₹11.61 crore.
- IPO Dates: The issue opens for subscription on September 25, 2025, and closes on September 29, 2025.
- Listing Date: The shares are tentatively scheduled to be listed on BSE and NSE on October 3, 2025.
- Price Band: The price per share is set between ₹115 and ₹121.
- Lot Size: Retail investors can apply for a minimum of 120 shares, which at the upper price band amounts to a minimum investment of ₹14,520.
- Lead Manager: GYR Capital Advisors Pvt. Ltd.
- Registrar: Bigshare Services Pvt. Ltd.
Jinkushal Industries Financials (as of March 31, 2025)
The company has shown strong and consistent growth in revenue and profitability.
| Particulars (₹ Crores) | FY25 | FY24 | FY23 |
| Total Income | 385.81 | 242.80 | 233.45 |
| Profit After Tax (PAT) | 19.14 | 18.64 | 10.12 |
| Net Worth | 86.19 | 43.07 | 37.77 |
| Total Borrowings | 54.82 | 46.04 | 45.45 |
- Key Metrics (FY25):
- Return on Net Worth (RoNW): 21.22%
- Price/Earnings (P/E) Ratio: 19.67x (at the upper price band)
- Debt to Equity Ratio: 0.58
- PAT Margin: 5.03%
The company’s financials indicate a robust performance, with a significant jump in revenue in FY25. The debt-to-equity ratio is at a manageable level, and the company’s profitability and return ratios are healthy.
Jinkushal Industries Future Plan
Jinkushal Industries plans to utilize the IPO proceeds to further strengthen its business. The primary objective is to fund the working capital requirements of the company to support its growth trajectory. A portion of the funds will also be used for general corporate purposes, which may include further market expansion and investment in its ‘HexL’ brand. The company aims to expand its ‘HexL’ brand into new categories, including electric construction machinery, to align with global sustainability trends and capture higher-margin business.
Pros & Cons Summary
Strengths (Pros):
- Market Leadership: Holds a dominant position as the largest exporter of non-OEM construction machinery from India.
- Strong Financial Performance: The company has demonstrated consistent growth in revenue and profit.
- Diversified Business Model: The combination of new trading, refurbishment, and its own brand reduces risk and creates multiple revenue streams.
- Global Presence: Its subsidiaries in the UAE and the USA provide a strong global footprint, with a presence in over 30 countries.
- Sustainable Business Model: The refurbishment and reuse of machinery align with the circular economy, giving it a competitive and environmental edge.
Weaknesses (Cons):
- High Revenue Concentration: A significant portion of revenue is still derived from a few geographies and a single product type (hydraulic excavators).
- Dependency on Export Markets: The business is highly vulnerable to global economic downturns, currency fluctuations, and changes in international trade policies.
- Competition from OEMs: Faces stiff competition from large Original Equipment Manufacturers (OEMs) who have a strong brand presence and service network.
- Working Capital Intensive: The business model requires a significant amount of working capital, which could be a risk if not managed efficiently.
Listing Gain Expectation & Conclusion
Based on recent market trends and the company’s robust fundamentals, the IPO has garnered significant interest. The Grey Market Premium (GMP) has been strong, with reports suggesting a premium of around 40-42%. This indicates a high likelihood of a strong listing gain.
The company’s P/E ratio of 19.67x is also lower than some of its listed peers, suggesting that the issue is reasonably valued.
For investors, the Jinkushal Industries IPO presents an attractive opportunity. The company’s strategic position in a niche market, coupled with its strong financial performance and ambitious growth plans, makes it a compelling investment. The high GMP points to potential for a quick listing pop, but the underlying fundamentals also make it a solid long-term investment.
Investors with a moderate to high-risk appetite can consider applying for this IPO, both for a potential listing gain and for long-term growth.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
