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    Buy KNR Constructions, target price Rs 310: Motilal Oswal Financial Services

    Synopsis

    KNR Constructions, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 7302.26 Crore) operating in Infrastructure sector.

    BuyAgencies
    The brokerage maintains its buy rating with a SoTP-based target of Rs 310, implying 21% potential upside.
    Motilal Oswal Financial Services has buy call on KNR Constructions with a target price of Rs 310. The current market price of KNR Constructions is Rs 262.05.

    KNR Constructions, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 7302.26 Crore) operating in Infrastructure sector.

    KNR Constructions 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 has 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 has reported net profit after tax of Rs 98.51 Crore in latest quarter.

    The company’s top management includes Mr.B V Rama Rao, Mr.K Narasimha Reddy, Mr.K Jalandhar Reddy, Mrs.K Yashoda, Mr.L B Reddy, Mrs.G Chandra Rekha. Company has K P Rao & Co. as its auditors. As on 30-09-2022, the company has a total of 28 Crore shares outstanding.

    Investment Rationale
    The brokerage believes a strong tender pipeline in Roads can translate into decent order inflows in the coming months, which can provide greater visibility on growth beyond FY24.Based on the current order book of Rs 80 billion, the brokerage expects the company to clock 14% revenue growth over FY22-24, with EBITDA margin in the 18-19% range. The brokerage maintains its BUY rating with a SoTP-based TP of Rs 310, implying 21% potential upside.

    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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    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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