KNR Constructions Ltd. share price target

The company holds an order backlog of Rs.3,888cr, equivalent to 1x TTM revenue, ensuring near-term revenue visibility. However, the current NHAI ban and a lack of significant order inflows over the past nine months may adversely affect performance. We wait for further clarity on the subject...

We maintain our HOLD recommendation on the stock with a TP of Rs 255/share.

In 3QFY25, KNR Constructions (KNRC) received certain arbitration claims. For a like-to-like comparison, we have adjusted the same in revenue, other income, other expenses, and total taxes for 3QFY25 and have shown them as exceptional items.

We maintain our recommendation to HOLD with a TP of Rs 285/share.

In 1QFY25, KNR Constructions (KNRC) received certain arbitration claims. For like-to-like comparison, we have adjusted the same in revenue.

For Q1FY25, adjusting for one-off arbitration claim, standalone revenues were lower than estimates,
while OPMs marginally lagged. Higher other income led to marginal miss on standalone net profit.

We change our recommendation from BUY to HOLD and revis our estimates downward based on the management guidance of lower margin.

We maintain our BUY recommendation on the stock and roll over our estimates to FY26.

We maintain our BUY recommendation on the stock

We maintain our BUY rating on KNRCL and value the company at 15 x FY25E EPS and HAM projects at 1.2x book value to arrive at a target price of Rs 305/share, implying an upside of 11% from the CMP.