Ashish Kacholia Stock Rallies 5% After Announcing a New 50,000 Sq Ft Facility in Karad

Synopsis: Micro-Cap shares rose 5% after announcing a new 50,000 sq ft Karad facility opening on 20 June 2026. The 6-acre IGBC-compliant plant features robotic welding and advanced manufacturing, boosting its defence and marine HVAC&R capabilities and supporting future global expansion.

The shares of a Micro-Cap company specialising in manufacturing mission-critical HVAC&R (Heating, Ventilation, Air Conditioning, and Refrigeration) systems, heavy fabrication, and electrical control panels for both the defense and industrial sectors are in focus as they have rallied 5 percent in the day’s trade.

With a market capitalization of Rs. 929.81 crores in the day’s trade, the shares of Shree Refrigerations Ltd rose by 4.5 percent, reaching a high of Rs. 265.00 per share compared to its previous closing price of Rs. 253.35 per share. The Ace Investor Ashish Kacholia holds a 3.42 percent stake, and through Bengal Finance and Investment Pvt Ltd, he holds a 2.25 percent stake in the company as of March 2026.

What Happened 

Shree Refrigerations Limited (SRL), a defence-focused manufacturer of advanced refrigeration and HVAC&R systems, has announced that it will inaugurate its new manufacturing facility in Karad, Satara district, Maharashtra, on 20 June 2026. The expansion adds 50,000 square feet to its manufacturing footprint and is developed across a 6-acre site.

The new state-of-the-art facility features advanced machinery and full backward integration, including robotic welding, laser cutting, bending, paint shop, and modern shot blasting. It has been built in line with Indian Green Building Council (IGBC) standards and includes provision for a future expansion of another 50,000 square feet at the same location.

With over 35 years of industry experience and a strategic shift into the defence sector in the past decade, SRL has grown into a publicly listed company on the Bombay Stock Exchange (BSE). This expansion is expected to further strengthen its position as a preferred supplier for critical marine and defence HVAC&R applications.

Management Commentry

Ravalnath Gopinath Shende, Chairman and Managing Director of Shree Refrigerations Ltd., said the new facility will significantly enhance SRL’s capability to design, manufacture, test, and integrate specialised cooling solutions for critical applications where reliability, durability, and performance are essential. He added that the plant reinforces the company’s focus on indigenous design, manufacturing, and long-term lifecycle support for defence and infrastructure sectors.

He further explained that the initial focus of the facility will be on improving efficiency and strengthening the supply chain by reducing dependency on the Pune-based ecosystem. The company aims to expand backward integration, increase in-house manufacturing, and reduce production timelines, while also improving the order-to-delivery cycle for customised projects to boost customer satisfaction and operational efficiency.

SRL also reported strong performance in H2FY26 and FY26, with revenues growing over 100% YoY and HoH in H2FY26 and over 50% YoY in FY26, driven by better execution and higher project completion rates. The company is uniquely positioned as the only Indian firm with naval registrations across Chillers & Refrigeration Plants, Turnkey HVAC&R Solutions, and Electrical Control Panels, along with capabilities in defence electrical systems and heavy fabrication services.

Financials & Others

The company’s revenue rose by 114.5 percent from Rs. 48 crores in March 2025 to Rs. 103 crores in March 2026. Meanwhile, Net profit rose from Rs. 4 crores to Rs. 20 crores in the same period.

The company has demonstrated strong profitability metrics, with a Return on Capital Employed (ROCE) of 13.9% and Return on Equity (ROE) of 13.0%, indicating efficient use of capital and steady returns for shareholders. Its low debt-to-equity ratio of 0.17 also reflects a conservative capital structure with limited reliance on borrowed funds.

From a growth perspective, the company has delivered an impressive 136% CAGR in profit over the last 5 years, highlighting strong expansion and execution capabilities. Additionally, a PEG ratio of 0.43 suggests the stock may be undervalued relative to its growth potential, assuming earnings momentum continues.

Shree Refrigerations Ltd is an Indian engineering company engaged in manufacturing refrigeration and HVAC (Heating, Ventilation, and Air Conditioning) systems. It produces a wide range of products such as chillers, air-conditioning units, marine HVAC systems, control panels, and specialized cooling solutions used in industrial, marine, and defence applications.

The company is particularly known for supplying mission-critical cooling systems to sectors like defence, automotive, pharma, and data centres. It also provides installation, maintenance, and turnkey HVAC services, with a strong focus on customized, high-performance cooling solutions designed for harsh operating environments.

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