BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Target Hit|| Long (1Y)
HDFC Securities downgrades KNR Construction to neutral
delivered Revenue/EBIDTA beat 21.8/20.1% led by strong order book
execution. Despite robust headline numbers, higher depreciation and
lower adjusted other income/higher claims award/MAT credit led to 5.7%
APAT beat. The B/S is healthy, with standalone net debt at Rs 1.1bn
(net D/E at 0.1x, -0.01x adjusting for promoters' loan of Rs 1.2bn).
Order intake remains muted with no new orders during 1QFY18. KNRC
has submitted bids for Telangana irrigation orders and is evaluating
upcoming HAM projects. Whilst NHAI has slowed new awards during 1QFY18
on account of GST/land acquisition issues, bidding is expected to pick
up from 2HFY18E. KNRC has maintained Rs 20-25bn of new order inflows
during FY18E. Debtor's days remain the best in the industry at 35 days.
With recent price outperformance we downgrade KNRC to NEUTRAL from
BUY. Maintain SOTP of Rs 228/sh.