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

Kotak Securities has maintained its Buy rating on KNR Constructions in the long term with a target price of Rs 305. Shares of KNR Constructions closed at Rs 232, down 1.6% while the BSE Sensex was up 199.31 points to 41,020.61.

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

The brokerage said KNR continues to focus selectively on bidding for projects in the southern region where it has competitive edge due to availability of own source of raw material and better geographical understanding. The company is expected to have strong cash flows and a deal with Cube Highways along with monetization of build operate transfer assets will help the company in meeting upfront equity commitments.