KNR Constructions Ltd - BUY

Discussion in 'Latest Brokerage Stock Buy-Sell Reports' started by Vidhi Khanna, Sep 2, 2019.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

    Mar 19, 2015
    Likes Received:
    KNR Constructions Ltd - BUY
    Download Report
    CMP (Rs) Target (Rs)
    230 289
    Upside (%) Tenure
    26 12-Months

    KNR Constructions (KNR), an established road contractor, is poised to register 20.4% revenue CAGR over FY19-21E led by (a) robust order book (~2.8x FY19 revenue), (b) strong execution skills, (c) healthy balance sheet (Q1FY20 standalone Debt/Equity ratio of ~0.2x), and (d) likely strong order inflows led by Bharatmala and irrigation projects.

    KNR is in a sweet spot to secure selective high margin orders given its healthy order book position and balance sheet.

    Our SOTP of Rs289 is based on 12x FY21E standalone EPS and Rs36/share contribution from stake in 4 BOT assets. We recommend BUY on KNR Constructions.