ICICI Direct has given a buy rating to KNR Constructions with a target price of Rs 300. The share price moved down by 1.04 per cent from its previous close of Rs 245.25. The stock’s last traded price is Rs 242.70.

KNR Constructions Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 3431.06 Crore) operating in Infrastructure sector.

For the quarter ended 30-06-2020, the company has reported a Consolidated sales of Rs 522.53 Crore, down -28.44 % from last quarter Sales of Rs 730.14 Crore and down -1.54 % from last year same quarter Sales of Rs 530.72 Crore. Company reported net profit after tax of Rs 41.95 Crore in latest quarter.

Investment Rationale
KNR’s revenue weakness impact is expected to be the least owing to decent execution in the irrigation project. Hence, it expects revenues to de-grow 3% YoY to Rs 530 crore (up 1% on an adjusted basis as base quarter had Rs 21.8 crore interest income on arbitration claim in the topline), EBITDA margin is expected to contract 70 bps YoY to 19%, on adjusted basis. Overall, it expects bottomline to decline 40.8% YoY to Rs 41.5 crore, given the one-offs and lower tax in base quarter. Key Monitorable: Status on HAM projects

Promoter/FII Holdings
Promoters held 55.17 per cent stake in the company as of March 31, 2020, while FIIs held 1.92 per cent, DIIs 32.45 per cent and public & others 10.35 per cent.

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