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    Buy KNR Constructions, target price Rs 314: Centrum Broking

    Synopsis

    KNR Constructions Ltd. key Products/Revenue Segments include Income From Contracts and Other Operating Revenue for the year ending 31-Mar-2022.

    BuyGetty Images
    Promoters held 51.09 per cent stake in the company as of 30-Sep-2022, while FIIs owned 5.73 per cent, DIIs 34.59 per cent.
    Centrum Broking has buy call on KNR Constructions with a target price of Rs 314. The current market price of KNR Constructions Ltd. is Rs 246.75.

    KNR Constructions Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 6940.87 Crore) operating in Infrastructure sector.

    KNR Constructions Ltd. key Products/Revenue Segments include Income From Contracts and Other Operating Revenue for the year ending 31-Mar-2022.


    Financials
    For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 971.58 Crore, down -1.92 % from last quarter Total Income of Rs 990.57 Crore and up 13.87 % from last year same quarter Total Income of Rs 853.23 Crore. Company reported net profit after tax of Rs 98.51 Crore in latest quarter.

    Investment Rationale
    The brokerage expects KNR’s revenue/PAT to grow by 16%/15% CAGR over FY22-25E led by a moderate backlog and expected pick-up in order intake. Proceeds from Cube deal have further strengthened the balance sheet and provide growth capital. Unadjusted valuations at 14.5x/12.7x FY24E/FY25E earnings appear reasonable given KNR’s strong balance sheet and credentials. It values KNR’s EPC business at 16x average FY24-25 EPS and BOT/HAM assets at Rs23/share (1x P/B). Maintain Buy with PT of Rs314.

    Promoter/FII Holdings
    Promoters held 51.09 per cent stake in the company as of 30-Sep-2022, while FIIs owned 5.73 per cent, DIIs 34.59 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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