Sharekhan's research repor on KNR Constructions
Road project awarding and construction activities increased during October 2020. Toll project revenues are also rising robustly as seen by FASTag and NHAI toll collections. Bank credit deployment to roads sector has started to show improvement with healthy y-o-y rise during September and October which should aid execution of ongoing projects and financial closure of new projects going ahead. Liquidity conditions set to improve with completion of BOT asset deal and expected receipts from Telangana state government.
Outlook
We retain a Buy on KNR Constructions with a revised price target of Rs. 367 as we believe that improving industry outlook and strengthening balance sheet are strong growth levers.
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