Buy KNR Constructions; target of Rs 407: Dolat Capital

Dolat Capital is bullish on KNR Constructions has recommended buy rating on the stock with a target price of Rs 407 in its research report dated May 31, 2018.

Broker Research

September 18, 2018 / 15:59 IST

26 Aug, 2025 12:21

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Dolat Capital's research report on KNR Constructions

KNR’s revenue grew 29.5% YoY in Q4FY18 to `6.2bn (19.2% above estimates) led by better execution. The EBITDA margin expanded 435bps YoY to 22.3% (135bps above estimates) due to lower subcontracting costs and few projects nearing completion having better margins. Depreciation has increased sharply by 152% YoY (up 32.2% QoQ) to `491mn due to higher asset utilization for couple of irrigation projects with shorter execution period. Adj. PAT grew sharply by 52.1% YoY to `797mn (81.7% above estimates) led by better operating performance.

Outlook

We expect KNR to witness healthy revenue growth over FY18-20E, healthy margins and return ratios coupled with well managed balance sheet, comfortable working capital and low D:E. Hence, we maintain BUY with a revised SOTP of `407.

For all recommendations report, click here