Motilal Oswal has given Buy recommendation for KNR Constructions recommended buy rating on the stock with a target price of Rs 310 in its research r with a target price of Rs. 310 in its research report issued on Aug 13, 2022

Motilal Oswal’s research report on KNR Constructions

Revenue grew 20% YoY, but fell 12% QoQ to ~INR8.9b in 1QFY23, 5% above our estimate. EBITDA margin fell ~90bp YoY and 200bp QoQ to 18.5% (in line). EBITDA/PAT grew 15%/38% YoY to INR1.65b/INR1b (est. INR1.57b/ INR0.9b). Depreciation expense is lower as the Irrigation capex has been reducing. Depreciation in Irrigation projects is higher than that in Roads.  Irrigation projects contributed INR3b, or 35% of revenue, in 1QFY23. Pending receivables from Irrigation projects have risen to INR8.5b at present from INR6.5b in May’22. It hasn’t received any payments after May’22 for Irrigation projects.


We maintain our Buy with a SoTP-based TP of INR310, implying an upside of 19%.

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