Moneycontrol
Feb 17, 2017 10:51 AM IST | Source: Moneycontrol.com

Accumulate KNR Constructions; target of Rs 194: Geojit BNP

Geojit BNP Paribas has recommended accumulate rating on KNR Constructions with a target price of Rs 194 in its research report dated February 16, 2017.

Accumulate KNR Constructions; target of Rs 194: Geojit BNP


Geojit BNP Paribas' research report on KNR Constructions


Q3FY17 revenue grew by 88% to Rs 382cr, which is above our estimate. KNR has successfully withstood the disruptions in execution on account of demonetisation. In the near term, the EPC projects in Tamil Nadu are likely to get impacted due to the current political chaos.


Outlook


We increased FY17E and FY18E PAT estimates by 12% & 8% respectively, factoring better execution. Sound balance sheet and the earnings visibility keep KNR in premium valuation. We rollover our valuations to FY19E EPS at a PE of 14x and BOT projects at 1xP/B to arrive at SOTP target price Rs 194 with ‘Accumulate’ rating.

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