IPO closes on 29 Sep'25
Jinkushal Industries Ltd
Minimum Investment
₹ 14,520 / 120 shares
Our Verdict:
Avoid
- Jinkushal Industries Ltd (JIL) has delivered strong revenue growth, holds DGFT-certified exporter status and operates with an asset-light model that avoids heavy capex. Its global supplier network offers scale and if its own brand ‘HexL’ gains traction, it could unlock refurbished-like margins and meaningful brand-led upside.
- However, risks outweigh the positives at this stage. The company is heavily dependent on Mexico, operates with thin profitability, shows weak cash conversion and has only a nascent brand presence.
- Stretched valuation further reduces comfort. At ~20x P/E, the IPO is priced in line with the industry average, but peers enjoy stronger domestic presence, recurring service income and higher customer stickiness.
- Given these considerations, we recommend avoiding the IPO at this stage. Short-term or listing gains, if any, will be sentiment-driven rather than fundamentals-led.
About the company
Founded in
27 Nov'07
Managing director
Anil Jain
- JIL positions itself as a niche exporter of construction equipment, operating across three business lines. First, refurbished machines — sourced globally, refurbished either in-house or through partners and exported. Second, new and customised equipment — imported and modified with attachments or tweaks. Third, its own brand HexL — contract-manufactured in China, with backhoe loaders launched in FY25.
- In addition, JIL generates a small portion of revenue from leasing logistics warehouses and renting out construction machinery.
STRENGTHS
- Market Leader: JIL is India’s largest Non-OEM construction machines exporter, holding a 6.9% market share. It is recognized as a Three-Star Export House by the Directorate General of Foreign Trade (DGFT), Government of India, with exports to over 30 countries.
- Strong Growth: Between FY23 and FY25, JIL recorded impressive growth — operating revenue grew at a 28% CAGR, EBITDA surged by 40% and net profit expanded by 38%.
- Healthy Return Ratios: JIL maintains solid financial efficiency with a Return on Equity (ROE) of 28.30% and a Return on Capital Employed (ROCE) of 18.39% in FY25, highlighting its ability to generate shareholder value and use capital effectively.
RISK FACTORS
- Limited Market Share: Despite its global presence, JIL holds only a 6.9% share in India’s fragmented refurbished export market. The scale is insufficient to command strong pricing power. In FY25, exports contributed 99% of revenue, with Mexico alone accounting for 75% — creating heavy geographic concentration and vulnerability to trade policies and macroeconomic fluctuations.
- Weak Domestic Presence: Domestic revenue stood at only Rs 3.1 crore in FY25, largely from equipment and warehouse leasing. JIL’s inability to capture India’s booming infrastructure cycle highlights its weak competitiveness against other OEMs like JCB and ACE.
- Thin Profitability: While revenues grew at a healthy CAGR in FY23–FY25, margins remain under pressure. JIL’s EBITDA margin of 7.5% and PAT margin of 5% in FY25 are significantly lower than peers, underscoring limited pricing power and operational inefficiencies.
- Cash Flow Pressure: JIL reported negative cash flow from operating activities in both FY25 and FY24. Prolonged negative cash flows could negatively affect its overall financial stability.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 116.15 crore
Fresh Issue
₹ 104.54 crore
OFS
₹ 11.61 crore
Price range
₹ 115 - 121
Lot size
120 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Funding the working capital requirements of the company; and
- General corporate purposes.
Dates
Bidding open
25 Sep'25
Bidding close
29 Sep'25
Allotment date
30 Sep'25
Refund date
1 Oct'25
Listing
3 Oct'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.