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Last Updated : Jun 13, 2019 04:09 PM IST | Source: Moneycontrol.com

Buy KNR Constructions; target of Rs 369: Dolat Capital

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.

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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).


Outlook


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.




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First Published on Jun 13, 2019 04:09 pm
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