Buy KNR Constructions; target of Rs 350: Sharekhan

Sharekhan's research report on KNR Constructions

Execution continued to be better than expected; Net working capital days reduced q-o-q. Standalone and consolidated balance sheet remained strong. Management raised FY22 revenue guidance, assuming the third wave of COVID-19 does not pose challenges. On order intake, guidance stayed conservative at Rs. 2000-3000 crore. Expect receivables from irrigation segment to majorly clear up in the next 2-3 months.

Outlook

We retain a Buy on KNR Constructions with a revised price target of Rs. 350, factoring in upwardly revised estimates.