Dolat Capital is bullish on KNR Constructions has recommended buy rating on the stock with a target price of Rs 369 in its research report dated May 31, 2019.
Dolat Capital's research report on KNR Constructions
KNR’s revenue is up 14.6% YoY to `7.2 bn (the highest quarterly revenue in its history) in Q4FY19 (31.7% above estimates), due to robust execution. The EBITDA margin rose 80 bps YoY to 20.1% (211 bps above estimates), driven by higher contribution from the high margin irrigation segment, coupled with lower subcontracting cost. The reported PAT increased 15.6% YoY to `922 mn, due to a strong operating performance. The Adj. PAT (after adjusting for exceptional loss of `25 mn in Q4FY19) rose 18.8% YoY to `947 mn (95.5% above estimates).
Though stock has risen 40% post our Q3FY19 update note, considering healthy return ratios, a well-managed balance sheet, comfortable working capital, low D:E, and quality management, we maintain BUY, and increase our SOTP-based TP to `369 (Exhibit 3).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .