KNR Constructions Q4 Results Review - Muted Quarter; Order Inflow Must: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.KNR Constructions Ltd.’s Q4 FY24 results (post adjustments) came below estimates. Core revenue/core Ebitda/adjusted profit after tax reported +0.3%/-4.1%/+12.1% YoY to Rs 2.1 billion/Rs 1.5 billion/Rs 1.4 billion. Core Ebitda margin reduced by 79 bps YoY to 17.2% primarily due to higher spreading and assortment expenses.KNR Constructions guided flat revenue growth with an Ebitda margin of 15-16% for FY25E and targets an order inflow of Rs 50-60 billion (Rs 20-30 billion by Q2 FY25).We expect revenue/APAT CAGR of 1.7%/0.8% over FY24-26E with Ebitda margins of 17.4%/17.3% for FY25E/FY26E. We decrease FY25E/FY26E EPS estimates by 9.1%/5.0% post factoring lower revenue due to lower order inflow (Rs 16.8 billion versus estimates of Rs 47.8 billion) in FY24 coupled with lower Ebitda margins for FY25E/FY26E; sizable order inflow is a must for growth. The stock has run up by ~11% since our result update note on Feb, 10 2024. Accordingly, we downgrade to ‘Sell’ rating from Accumulate with a revised SOTP based target price of Rs 268 (14 times FY26E EPS and 1.2 times price/book for hybrid annuity model investment)..Click on the attachment to read the full report:.Cummins, Brigade Enterprises, Lemon Tree, KNR Constructions, Ahluwalia Contracts Q4 Review: HDFC Securities .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

KNR Constructions Q4 Results Review - Muted Quarter; Order Inflow Must: Dolat Capital

KNR Construction won orders worth Rs 16.8 billion/Rs 12.0 billion during FY24/YTDFY25, taking order book to Rs 53.0 billion in FY24

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