Moneycontrol
Feb 16, 2017 01:37 PM IST | Source: Moneycontrol.com

Buy KNR Constructions; target of Rs 201: Edelweiss

Edelweiss is bullish on KNR Constructions has recommended buy rating on the stock with a target price of Rs 201 in its research report dated February 14, 2017.

Buy KNR Constructions; target of Rs 201: Edelweiss


Edelweiss' research report on KNR Constructions


KNR Constructions (KNR) continued its strong performance with revenue at INR 3.8bn in Q3FY17, up 75% YoY. Adjusting for one‐off claims received in Q3FY16, EBITDA margin declined 50bps YoY to 15.1%. Adjusting for INR 109mn loss booked in the current quarter due to impairment of investment in 2 BOT projects, PAT rose 22% YoY to INR 415mn.


Outlook


KNR’s order book at Q3FY17 end stood at INR 42bn (3.1x TTM revenue). Healthy order book, strong execution skills and robust balance sheet render KNR one of the best bets in the EPC space. Maintain ‘BUY’ with SoTP‐based target price of INR 201, as we roll over to FY19E.

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