Buy KNR Constructions; target of Rs 403: Dolat Capital

Dolat Capital is bullish on KNR Constructions has recommended buy rating on the stock with a target price of Rs 403 in its research report dated April 26, 2018.

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April 26, 2018 / 16:02 IST

26 Aug, 2025 12:21

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Dolat Capital's research report on KNR Constructions

KNR, primarily focused on road EPC, HAM and irrigation shall behold spike in growth in revenue from 2HFY19E as execution on recently won `44.7bn (EPC value `31bn) HAM projects kicks in. Albeit, the revenue is expected to decline during 1HFY19E due to slower execution pace on old projects impacted by project specific issues (land acquisition, etc.) particularly in road segment. The company will continue to focus on road and irrigation sector and expect fresh order inflow of `20bn/ `30bn in FY19E/ FY20E, respectively given the huge tender pipeline and opportunity.

Outlook

We expect KNR’s revenue/ Adj. PAT to grow at a healthy CAGR of 33.7%/15.1% over FY18-20E. We expect KNR to witness healthy revenue growth over FY17-20E, healthy margins and return ratios coupled with well managed balance sheet, comfortable working capital and low D:E. Hence, we upgrade to Buy with an upward revised SOTP of `403.For all recommendations report, click here

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