Buy KNR Constructions; target of Rs 299: Geojit

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26 Aug, 2025 12:21

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Geojit's research report on KNR Constructions

Q1FY21 revenue grew by 3.2% YoY despite Covid led disruption in execution & unavailability of manpower. EBITDA margin improved by 30bps YoY to 19.7% due to favourable mix of high margin irrigation projects and lower sub-contracting expenses. Current order book stands healthy at Rs7,849cr (incl. L1 orders) which is 3.8x TTM revenue and provides visibility. We expect execution to improve H2FY21 due to increasing order book and manpower. The healthy balance sheet, strong execution capability with better operational margin will support valuation.

Outlook

We maintain our BUY rating and value core business at a P/E of 13x on FY22 EPS and BOT/HAM projects at 1xP/B to arrive at SOTP target price of Rs299.

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