KNR Constructions Ltd. share price target

Stake sale in KNR Walayar BOT to Cube Highways concluded at equity value of Rs3.85bn and company received first tranche of Rs3.1bn. KNR Constructions posted a strong set of numbers with revenues (up 10% YoY) and margins above our and street estimates. Labour availability and operational efficiency across project sites have been recovering gradually,...

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...

Q2FY21 revenue grew by 10% YoY (in-line with estimate) as execution is picking up and man power reached 80% of preCovid levels. EBITDA margin declined by 239bps YoY to 20.6% due to higher sub-contracting and other expenses. Current order book stands healthy at Rs8,555cr which is 3.8x TTM revenue and provides visibility....

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 a revised SoTP TP of | 310. We will closely monitor irrigation...

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

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%...

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...