Get App
Last Updated : Feb 13, 2020 01:06 PM IST | Source:

Buy KNR Constructions; target of Rs 304: Prabhudas Lilladher

Prabhudas Lilladher is bullish on KNR Constructions has recommended buy rating on the stock with a target price of Rs 304 in its research report dated January 10, 2020.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

Prabhudas Lilladher's research report on KNR Constructions

We believe this development is positive for the company, as it will further strengthen its balance sheet. KNR remains strong in fundamentals backed by strong execution capabilities, healthy operating margins and industry best working capital cycle. KNRC order book stands healthy at ~4x TTM revenues giving us comfortable revenue visibility for next 2-3 years. We expect KNRC to post a revenue/EBITDA CAGR of 19%/9% over FY19-FY22E supported by ramp ups from the existing order book.


We maintain BUY rating with a SOTP of Rs304 which includes ~Rs269 for the standalone EPC business based on 16x FY21E EPS and ~Rs35 for BOT projects based on 1x equity invested. At the CMP, the stock trades at a P/E of 20.3x FY20E and 16.6x FY21E EPS and EV/EBITDA of 10.5x FY20E and 8.8x FY21E EBITDA.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.

First Published on Jan 14, 2020 10:36 am
Follow us on