Broker’s call: KNR Constructions (Buy)

Target: ₹340

CMP: ₹231.50

KNR Constructions Ltd has an order book of ₹8,586 crore (as of Jun’22), implying revenue visibility of over 2-3 years as over 90 per cent of the order book is executable. The Road sector is gaining significant traction on account of the central government’s proactive push for infrastructure development and incumbents like KNRCL are likely to be the key beneficiaries of the structural growth opportunities available in the sector.

With prevailing development in the infrastructure space, a strong and diversified order book position, efficient execution prowess, asset monetization of HAM projects and a lean balance sheet, we expect the company to post Revenues/EBITDA/APAT growth of 18 per cent/17 per cent/26 per cent CAGR respectively over FY21-24.

KNRCL has an order book of ₹8,586 Cr (as of 30th Jun’22), implying revenue visibility of over 2-3 years as over 90% of the order book is executable. The Road sector is gaining significant traction on account of the central government’s proactive push for infrastructure development and incumbents like KNRCL are likely to be the key beneficiaries of the structural growth opportunities available in the sector.

Published on

September 26, 2022