Ice Make Refrigeration Ltd – CMP – 608

Recommendation: Sell

Fundamental Grade : C Grade (Average Safety)

Brief about the company:

The company is engaged in the business of providing customized cooling solutions to diverse set of clients. Ice make manufacturing facilities are located in Ahmedabad and Chennai. The company operates in 4 key business verticals which include cold room, commercial refrigeration, industrial refrigeration and transport refrigeration.

Performance during Last 5 years:

Revenue grown at a CAGR of 25% and profit grown at a CAGR of 26% whereas share price reported CAGR return of 52%during this period. Return on equity for the past 5 year is above 16%.

Future Outlook:

In terms of revenue, the cold chain market in India was valued at ₹ 1.86 Trillion in 2022 and is projected to reach ₹ 4.26 Trillion by 2027, expanding at a CAGR of ~14.27% during the 2023-27 period. One of the key growth drivers is the rising need for cold storage and distribution services, especially for perishable items like fruits, vegetables, dairy products, seafood, meat, and poultry. Further, there is a notable surge in consumer demand in India’s processed food industry. Additionally, the healthcare sector is driving an increase in cold chain facilities.


At CMP, the stock is trading at PE of around 42 and P/B of around 10.89 which is expensive valuation for a small cap stock. The stock has run-up a lot in the recent past which limits any upside potential in the near future. Those who have invested at lower levels can book partial profit at this level. Fresh buy is not advisable at the current level. Fundamentally also the stock is not providing adequate safety. However, considering the future prospects, buying can be considered only on a significant decline from current levels.

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