KNR construction LTD (KNRC) revenue was better than estimate and PAT was higher than our estimate by 12%. Q2FY21 order book stood at Rs86bn (4x TTM revenue) with an order inflow of Rs31bn in H1FY21. KNRC expects revenue to increase by 5-7% YoY in FY21. Balance sheet continues to remain lean with Q2FY21 standalone debt at Rs640mn and Debt to Equity at 0.01x. Consolidate debt is at Rs8bn and Net DER is at 0.42x. Post the result, increased EPS for FY21E/22E by 10%/1% (exhibit 9). We have introduced FY23E financials and roll forward TP to FY23E. Our revised TP stands at Rs344 (earlier Rs300). Our SOTP based TP assigns 15x PER to construction business and 1x book value to equity investment...