Prefer KNR Constructions: Parag Thakkar

Parag Thakkar of HDFC Securities told CNBC-TV18, "We continue to like a least leveraged company like KNR Constructions. It is a company with the best working capital of 50 days and net debt to equity of 0.18 which is very rare in this kind of sector. There are huge a lot of road projects coming in. Recently road minister has told that we are building 12 km a day and he wants to take it to 30 km a day in 2 years. So, I think that is clearly one of the ideas, apart from that the highly capable companies like Simplex Infra and NCC, those also stand out."

"Remember in this sector there is a huge problem of working capital. If the working capital days get reduced and government starts releasing money or some of the litigations with national highway authority of India (NHAI) and all will gets resolved, this sector has a long way to go," he said.