KNR Constructions - Q1FY21 Result Update - ICICI Securities

KNR Constructions' (KNR) Q1FY21 performance was resilient amid Covid-19 impact. While there was an increase in working capital due to extended dues from irrigation projects, the company expects normalisation with inflows in the next few weeks. The topline came in at Rs. 479.4 crore, up 3.2% YoY, aided by better-than-expected execution and benign base. EBITDA came in at Rs. 94.3 crore, up 4.8% YoY, driven by superior topline. The consequent margin was higher at 19.7% (up 30 bps YoY). The company reported a PAT of Rs. 39.8 crore (down 16.6% YoY), impacted by higher tax rate.

Valuation & Outlook

Considering strong execution, best in class WC, monetisation of BOT/HAM assets, healthy balance sheet, strong return ratios, we maintain BUY on the stock with revised SoTP TP of Rs. 300. We will closely monitor irrigation receivables, execution that could be a key trigger for upgrade/downgrade.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_KNRCons_Q1FY21.pdf

Shares of KNR CONSTRUCTIONS LTD. was last trading in BSE at Rs.252.75 as compared to the previous close of Rs. 257.2. The total number of shares traded during the day was 33961 in over 1415 trades.

The stock hit an intraday high of Rs. 265.2 and intraday low of 250. The net turnover during the day was Rs. 8742320.

Source : Equity Bulls

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