Execution in line, while margins soften; focus on new order inflows

Company
11 Mar 2024
5 Min read 
  • KNR Constructions' 3QFY24 revenue grew 9% YoY, driven by Road HAM projects.
  •  EBITDA margin was lower than expected due to lower execution of high-margin irrigation projects.
  •  Order book stands at INR67b, with expectations of INR20-30b in new project wins in 4QFY24.
  •  Revenue expected to grow at a CAGR of 10% over FY23-26 with EBITDA margin of 17-18%.
  •  EPS estimates for FY24/FY25/FY26 cut by 4%/9%/3%.
  •  Reiterate BUY rating with a revised TP of INR320 based on SoTP valuation.
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