Buy KNR Constructions, target price Rs 330: Motilal Oswal

Motilal Oswal has buy call on KNR Constructions Ltd. with a target price of Rs 330. The current market price of KNR Constructions Ltd. is Rs 305.75. Time period given by analyst is one year when KNR Constructions Ltd. price can reach defined target.

KNR Constructions Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 8361.10 Crore) operating in Infrastructure sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 812.09 Crore, down -18.83 % from last quarter Total Income of Rs 1000.44 Crore and up 53.36 % from last year same quarter Total Income of Rs 529.52 Crore. Company reported net profit after tax of Rs 102.81 Crore in latest quarter.

Investment Rationale
On the back of such a strong order book, the brokerage expects KNR to post a revenue/EPS CAGR of 24%/33% over FY21–24E. It maintains a Buy rating, with higher TP of INR330 on a) 16x Sep’23E EPS for the EPC business and b) P/Inv of 1x on road assets.


Promoter/FII Holdings
Promoters held 53.3 per cent stake in the company as of June 30, 2021, while FIIs held 2.3 per cent, DIIs 34.4 per cent and public and others 10.1 per cent.