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Buy KNR Constructions, target price Rs 270: ICICI Direct

ICICI Direct has a buy call on KNR Constructions with a target price of Rs 270 for a time frame of 12 months. The current market price of KNR Constructions is Rs 233.35.

KNR Constructions Ltd, incorporated in the year 1995, is a Mid Cap company with a market cap of Rs 6578.08 Crore, operating in Infrastructure sector.

KNR Constructions Ltd’s key Products/Revenue Segments include Income From Contracts and Other Operating Revenue for the year ending 31-Mar-2020.

Investment Rationale

According to ICICI Direct, KNR is a proxy play on increased focus on roads and overall infrastructure push. While H1 FY22 could be muted, ICICI Direct expects a sharp pickup from H2.

Considering the following factors:

  • Strong execution
  • Healthy margins
  • Monetisation of BOT/HAM assets
  • Healthy balance sheet
  • Strong return ratios

ICICI Direct maintains buy rating on the stock with an unchanged target price of Rs 270.

Financials

For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 1000.44 Crore, up 31.39 per cent from last quarter Total Income of Rs 761.42 Crore and up 35.09 per cent from last year same quarter Total Income of Rs 740.56 Crore. Company has reported net profit after tax of Rs 87.26 Crore in latest quarter.

(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)

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