Buy KNR Construction; target of Rs 360: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal's research report on KNR Construction

KNR Construction (KNRC) delivered 12% YoY revenue growth (10% below our estimate) with EBITDA margin at 20.7% (v/s our estimate of 20%). The order book (OB) stood at INR100b (excluding recently won projects), with OB/revenue at 3.1x. KNRC received the appointed dates in two HAM projects in Jan’22, which should support execution in FY23E and FY24E. The company is debt-free at the standalone level. It has pending receivables of INR5.9b from irrigation projects and the management expects to recover INR1.5b by end-FY22.

Outlook

We cut our FY24E revenue/EBITDA/earnings by 10%/10%/13%, respectively, to factor in weaker-than-expected execution and subdued outlook on order inflows. With an order book of INR100b, we expect KNRC to clock 20% revenue growth over FY21-24, with EBITDA margin in the 18-20% range. Maintain BUY with an SoTP-based TP of INR360, implying 17% upside.

More Info

At 13:58 hrs KNR Constructions was quoting at Rs 311.65, up Rs 5.05, or 1.65 percent.

It has touched an intraday high of Rs 311.95 and an intraday low of Rs 301.25.

It was trading with volumes of 10,117 shares, compared to its thirty day average of 56,453 shares, a decrease of -82.08 percent.

In the previous trading session, the share closed down 0.70 percent or Rs 2.15 at Rs 306.60.

The share touched its 52-week high Rs 343.55 and 52-week low Rs 189.30 on 01 September, 2021 and 27 April, 2021, respectively.

Currently, it is trading 9.29 percent below its 52-week high and 64.63 percent above its 52-week low.

Market capitalisation stands at Rs 8,764.68 crore.

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