Buy KNR Constructions; target of Rs 320: Motilal Oswal

Motilal Oswal's research report onKNR Constructions

KNRC has received in principle financial sanctions for three of the four HAM projects the company has won from NHAI and the fourth project is expected to achieve financial closure by August 2018. Full financial closure should happen once KNRC has 80% land available on 3H basis to execute the projects.

Outlook

We maintain our Buy rating. We value the company on SOTP basis: INR275/share for standalone EPC business (16x FY20E EPS of INR17.2) and INR45/share for investments in BOT projects and land parcels (1x FY20E BV).

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