KNR Constructions Ltd. share price target

KNR constructions (KNR), one of best managed road constructer with light balance sheet, low working capital and one of the highest RoCE among peers, reported its Q3FY18 numbers. Topline grew by...

KNR exceeds our expectations. We forecasted revenue/EBITDA/net profit expectations of Rs3.4bn/Rs499mn/Rs380mn, including indirect taxes. While netting off blended 12% GST, KNRC reports a revenue/EBITDA/net profit of Rs3.9bn/Rs824mn/Rs590mn respectively. With Rs36bn in order backlog, translating into a mediocre book-bill of 2x FY18E revenues, we keep our fingers crossed. On order inflows, KNRC is confident of adding Rs25bn annual orders. By FY19, KNRC is aiming for Rs30bn inflows. We draw comfort from the company capital allocation policy. With lower exposure...

KNR Constructions Ltd (KNR) is a leading EPC player largely focusing on national and state highway projects. KNR has successfully executed ~6,000 lane km road projects across 12 states in India. Q2FY18 revenue grew only by 5% as GST related uncertainty and heavy monsoon impacted the execution. EBITDA margin improved significantly by 598bps YoY to 21% in Q2FY18 due to 61% YoY reduction in subcontracting expenses. Received an order of Rs451cr in irrigation while EPC inflow remains...

KNR constructions (KNR), one of best managed road constructer with light balance sheet, low working capital and one of the highest RoCE among peers, reported its Q2FY18 numbers. Topline grew by...

Owing to the recent price performance, we downgrade KNRC to NEUTRAL with increased SOTP of Rs 255/sh. KNRC delivered muted 2QFY18 revenues at Rs 3,933mn, 10.1% below our estimates. This was achieved despite GST-related headwinds. EBIDTA margins expanded 598bps YoY to 21% (highest over the last 6Q), owing to excess provision reversals in projects nearing completion. The B/S is healthy, with standalone net debt at Rs 1.28bn (net D/E at 0.13x, 0.01x adjusting for promoters loan of Rs 1.2bn).

Andhra Pradesh, Karnataka, Telengana and Tamil Nadu and that region accounts for ~88% of its current order book. Its clientele in the road segment includes NHAI, state governments and private companies. Besides, it also undertakes small projects in irrigation and water management, the company gets these orders from state governments. KNR over the years has evolved from a smaller sized Roads & Highways EPC player to a large one by executing projects within schedule time. As on 30th June 2017,...

KNR Constructions Limited is an India-based holding company. The Company is a multidomain infrastructure project development company. The Company undertakes engineering, procurement and construction (EPC) contracts, as well as build-operatetransfer (BOT) projects across various sectors, such as construction and maintenance of roads, highways, flyovers and bridges. Its range of verticals also include irrigation projects, water management, agriculture and trading business. It has completed approximately 5,890 kilometers of projects across over 10 states in India. Its urban water infrastructure management project is Challaghatta Main Valley Project, which involves the remodeling of primary and secondary storm drains, bridges/culverts and related works in Challaghatta Main Valley in Bangalore City. The Company's irrigation...

The competitive intensity in flyovers and urban roads is limited. Earthworks and other low-value added work could be sub-contracted. Adding to that, higher share of fast moving bitumen projects can be a catalyst. Winning Hybrid Annuity Model...

Debtor's days remain the best in the industry at 35 days. With recent price outperformance we downgrade KNRC to NEUTRAL from BUY. Maintain SOTP of Rs 228/sh. KNRC delivered Revenue/EBIDTA beat 21.8/20.1% led by strong order book execution. Despite robust headline numbers, higher depreciation and lower adjusted other income/higher claims award/MAT credit led to 5.7% APAT beat. The B/S is healthy, with standalone net debt at Rs 1.1bn (net D/E at 0.1x, -0.01x adjusting for promoters loan of Rs 1.2bn).

KNR constructions (KNR), one of best managed road constructer with light balance sheet, low working capital and one of the highest RoCE among peers, reported its Q1FY18 numbers. Topline grew by...