KNR Constructions - Result Update - ICICI Securities

KNR Constructions' (KNR) topline came in at Rs. 675.6 crore, down 5.6% YoY impacted by Covid-19. EBITDA came in at Rs. 146.9 crore, up 2% YoY with consequent margin higher at 21.7% (up 160 bps YoY) on account of higher proportion of revenues from HAM and high margin irrigation projects. PAT was at Rs. 67.2 crore (down 27% YoY) vs. expectations of Rs. 30.5 crore, with beat led by superior EBITDA. The decline in PAT on a YoY basis, was owing to higher depreciation (irrigation project led), higher interest (largely due to mobilisation advances) and lower tax in the base quarter.

Valuation & Outlook

At the CMP, KNR is trading at attractive valuations of 5.7x FY22E EV/EBITDA. Considering strong execution, best in class WC, monetisation of BOT/HAM assets, healthy balance sheet and strong return ratios, we maintain our BUY recommendation on the stock with an SoTP target price of Rs. 240/share.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_KNRCons_Q4FY20.pdf

Shares of KNR CONSTRUCTIONS LTD. was last trading in BSE at Rs.216.25 as compared to the previous close of Rs. 197.4. The total number of shares traded during the day was 66042 in over 3214 trades.

The stock hit an intraday high of Rs. 220 and intraday low of 199.8. The net turnover during the day was Rs. 14081127.

Source : Equity Bulls

Keywords