KNR Constructions has target of Rs 182: Tulsian

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KNR Constructions has target of Rs 182: Tulsian

KNR Constructions has target of Rs 182, says Investment Advisor, SP Tulsian.

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KNR Constructions has target of Rs 182, says Investment Advisor, SP Tulsian .

Tulsian told CNBC-TV18, "KNR Constructions is a company has an order book close to Rs 2000 crore in which 82% of the order book is for road construction and 18% is for the irrigation and agriculture. If you see the financial performance for the company for nine months they had a topline of Rs 425 crore and EPS of Rs 13.5. So if I extrapolate the same figures, I think they should be able to end FY10 with a topline of close to Rs 600 crore with an EPS of close to about Rs 19."

He further added, "Generally March quarter is always best for the contracting company and I would not be surprised to see an EPS of close to about Rs 20 also for the company. To complete the execution of the orders of Rs 2000 crore plus there will be some extra inflow one can expect a growth of about 30% for FY11 which translates into an EPS of close to Rs 24-25."

"The share is ruling at around Rs 168 that means it is ruling on a forward earning at a PE multiple of about 7 times while on the historic earning it is ruling at a PE multiple at about 8 times. I see good upside potential in the stock. In fact we have been tracking this stock for the last 3-4 months when it was ruling in two digits but now the stock can cross Rs 220 next 3-4 months. My day target is at Rs 182."

At 11:40 hrs the share was quoting at Rs 167.65, down Rs 0.9, or 0.53% with volumes of 65,473 shares. Market capitalisation stands at Rs 471.49 crore.

The company's trailing 12-month (TTM) EPS was at Rs 17.63 per share. The stock's price-to-earnings (P/E) ratio was 9.53. The latest book value of the company is Rs 93.63 per share. At current value, the price-to-book value of the company was 1.79. The dividend yield of the company was 1.19%.