Q3FY21 Result Update - KNR Constructions - ICICI Direct

KNR Constructions reported a robust set of Q3FY21 numbers wherein standalone revenue improved 23% YoY to Rs. 686.3 crore, reflecting the sharp pick-up in execution aided by healthy order book position and normalisation of labour availability/raw material supply chain post Covid-19 related disruptions. Furthermore, EBITDA margins, at 19.7%, were down 258 bps YoY, on account of project mix. At the PAT level, robust operating performance coupled with lower depreciation expense translated to 93% YoY growth to Rs. 77.6 crore.

Valuation & Outlook

KNR is a proxy play on increased focus on roads and overall infrastructure push. Considering a) strong execution, b) elevated level of margins, c) best in class working capital cycle, d) monetisation of BOT/HAM assets, e) healthy balance sheet, and f) strong return ratios, we maintain BUY on the stock with a revised SoTP target price of Rs. 270 (Rs. 260, earlier).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_KNRCons_Q3FY21.pdf

Shares of KNR CONSTRUCTIONS LTD. was last trading in BSE at Rs.218.85 as compared to the previous close of Rs. 222.05. The total number of shares traded during the day was 70532 in over 1713 trades.

The stock hit an intraday high of Rs. 227.8 and intraday low of 217.2. The net turnover during the day was Rs. 15715661.

Source : Equity Bulls

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