Kotak Securities maintains buy on KNR Constructions, target price Rs 305

Kotak Securities has maintained buy rating on KNR Constructions in the long term with a target price of Rs 305. Shares of KNR Constructions ended up 4.2% at Rs 264.05 on Thursday while BSE Sensex closed 320.62 points up at 41,626.64.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 587.07 crore, up 10.62% from last quarter sales of Rs 530.72 crore and up 30.34% from last year same quarter sales of Rs 450.42 crore. The company has reported net profit after tax of Rs 74.64 crore in the latest quarter.


The company’s top management includes Mr.B V Rama Rao, Mr.K Jalandhar Reddy, Mr.K Narasimha Reddy, Mr.L B Reddy, Mrs.Gottipulla Chandra Rekha, Mrs.K Yashoda. Company has K P Rao & Co. as its auditors. As on 30-09-2019, the company has a total of 140,617,300 shares outstanding.

Investment Rationale

KNR has track record of generating operating cash flows which will help it in meeting capital for future growth, said Kotak Securities. The company has track record of beating its revenue guidance and margin guidance, and the trend is likely to continue in FY20/ FY21.