Khambatta Securities has given Buy recommendation for Karda Constructions with a target price of Rs. 253 in its research report issued on Jun 29, 2021
Khambatta Securities’ research report on Karda Constructions
With over two and a half decades’ experience in Nashik, Karda Construction Limited (KCL) has a competitive advantage as a leading developer in its home turf where it is strongly positioned to cash in on the growth of the real estate market. The Nashik real estate market presents robust opportunities, given its location and robust infrastructure. The presence of projects across all key micro-markets in Nashik enables KCL to significantly benefit from the growth in the city’s real estate market. KCL is a prominent player in the affordable housing segment which is currently witnessing the fastest movement in inventory due to brisk uptake as a result of its affordability and strong demand in the market.
We believe the robust growth potential and the imminent bonus share issue position KCL as a credible case for re-rating. Based on a P/E of 35.0x FY24E EPS, we rate KCL a BUY with a target price of Rs 253 and an upside potential of 30%.