KNR Constructions Ltd. share price target

We maintain our revenue estimates and slightly increase our EBITDA margin estimates by 213/ 49 bps for FY21E/ FY22E factoring H1FY21 results. Accordingly, we increased our APAT estimates by 17.0%/ 2.4% for FY21E/ FY22E. We introduce FY23E. Labour availability currently...

KNR constructions (KNR), reported Q1FY21 numbers. Revenue grew by 3% YoY to INR 480 cr. Despite the pandemic playing spoilsport

Q1FY21 revenue grew by 3.2% YoY despite Covid led disruption in execution & unavailability of manpower. EBITDA margin improved by 30bps YoY to 19.7% due to...

Considering strong execution, best in class WC, monetisation of BOT/HAM assets, healthy balance sheet, strong return ratios, we maintain BUY on the stock with revised SoTP TP of | 300. We will closely monitor irrigation receivables, execution that could be a key trigger for upgrade/downgrade....

KNR construction LTD (KNRC) revenue was better than estimate and company reported revenue growth of 3% YoY in Q1FY21. This was driven by improved execution and lower base of last year. KNRC has achieved an execution efficiency of 70% for irrigation projects, 60% for highways. Labour availability at the site stands at 55-60% and is expected to improve to 80-85% post monsoon. However, NWC (net-working capital) in Q1, has increased by 13 days QoQ due to delay in payment from State government. KNRC has guided to match its FY20 execution (revenue) in FY21. Post the result; we have increased our EPS for FY21E/22E by 12/15%. We have modeled flat revenue growth in FY21E and 22%...

Stake sale in KNR Walayar Tollways BOT project to Cube Highways is in final stage of negotiations and is expected to conclude in next two months. KNR Constructions posted strong results beating our & street estimates, despite Covid-19 pandemic impacting execution. Margins were better with...

We broadly maintain our revenue estimates however, we increase our EBITDA margin estimates by 48/ 50 bps for FY21E/ FY22E factoring Q1FY21 results. We have sizably lowered our depreciation estimates and increase our tax rate and accordingly increased our PAT estimates by 10.9%/ 10.4% for FY21E/ FY22E. Labour availability currently stands...

With fasterthanexpected rampup in operations and entire order book (current) coming under execution during H2 FY21, we have marginally increased our revenue estimates for FY21/FY22....

19 August 2020 KNR Construction (KNR) outperformed in terms of execution by reporting revenue growth v/s our expectation of 35% YoY decline. The EBITDA margin expanded YoY on account of the rising share of higher margin irrigation projects, resulting in a strong beat on earnings. Including L1 orders, the order book (OB) stood strong at INR78.5b, implying OB/rev at 3.5x and providing healthy revenue visibility. KNR continues to surprise with its steady performance. However, the working capital cycle has witnessed marginal deterioration. This is primarily on account of pending dues from the Telangana government, which have been stalled since Feb20 and currently stand at INR6.8b. The management hopes to receive INR4.4b within the next few weeks. Factoring the strong performance in 1QFY21, we increase our FY21/FY22E EPS by 28%/7%. We maintain our (b) the book value of road assets.