Sharekhan's research report on KNR Constructions
For Q1FY25, adjusting for one-off arbitration claim, standalone revenues were lower than estimates, while OPMs marginally lagged. Higher other income led to marginal miss on standalone net profit. Standalone revenue growth guidance for FY2025 stay flattish along with 15-16% OPM. Order book at 1.5x TTM standalone revenues stay critical. Order inflow target raised to Rs. 6000-7000 crore from Rs. 5000-6000 crore for FY2025. It is eyeing strategic partnerships for bidding BOT toll projects, metros and irrigation.
Outlook
We retain Hold on KNR with a revised PT of Rs. 370, rolling forward our valuation to H1FY2027E earnings and considering unfavourable risk-reward at current valuation due to near term headwinds.
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