KNR Constructions Limited (KNRCON) AI Stock Analysis

• Market Cap: ₹43.44B
• Dividend Yield: 0.16%
• Average Volume (3M): 244.14K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.51
• Revenue Growth: -42.73%
• EPS Growth: -44.36%
• Country: IN
• Employees: 5,491
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.65
• Shares Outstanding: 281,234,600
• 10 Day Avg. Volume: 70,204
• 30 Day Avg. Volume: 244,138
• PEG Ratio: 0.22
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 1.35
• P/FCF Ratio: -9.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹166.00 ▲(3.81% Upside)

The score is driven primarily by strong financial performance (profitability and growth) and attractive valuation (low P/E). It is held back by cash flow weakness (negative free cash flow) and a mixed technical picture with longer-term trend pressure despite near-term strength.

Positive Factors

Profitability & Margins

Sustained strong gross, EBIT and net margins indicate durable cost control and pricing power in EPC projects. Healthy margins provide buffer against input-cost swings, support reinvestment in equipment and bid competitiveness, and underpin longer-term cash generation potential.

Balance Sheet Strength

A favorable equity ratio gives KNR resilience to absorb project delays and work-capital swings common in infrastructure contracting. Solid equity supports access to bank lines and joint-venture funding, enabling steady participation in large government tenders over the medium term.

Core Business & Market Position

Focused expertise in roads/highways EPC creates a structural advantage amid large, sustained public infrastructure programs. End-to-end execution capabilities (design, procurement, construction, commissioning) strengthen competitive positioning and support repeat contract awards and long-term revenue visibility.

Negative Factors

Cash Flow & Liquidity Risk

Persistent negative free cash flow and weak operating cash conversion reduce the firm's ability to self-fund capex and working capital, increasing dependence on external financing. Over months, this can constrain bid size, raise financing costs, and limit strategic flexibility during project slowdowns.

Rising Leverage

An increasing debt burden reduces financial flexibility and raises interest and covenant risk for an EPC contractor with lumpy receivables. Higher leverage can limit ability to pursue large HAM or annuity projects that require balance-sheet strength and may pressure margins if funding costs rise.

Recent Revenue & EPS Decline

Sharp YoY declines in reported revenue and EPS point to weak project conversion or timing effects and suggest volatility in top-line execution. Over the medium term this raises questions on backlog quality and margin sustainability, requiring focused execution and order wins to restore growth.

KNR Constructions Limited Business Overview & Revenue Model

Company Description

KNR Constructions Limited, together with its subsidiaries, engages in the construction, engineering, and infrastructure development businesses in India. The company provides engineering, procurement, and construction services for roads, highways, bridges and flyovers, expressways, viaducts, irrigation, urban water infrastructure management, agriculture, and commercial and residential projects. The company also undertakes BOT and HAM projects. KNR Constructions Limited was incorporated in 1995 and is based in Hyderabad, India.

How the Company Makes Money

KNR Constructions Limited generates revenue primarily through its construction contracts, which include both government and private sector projects. The company bids for and secures contracts to build infrastructure, receiving payments based on project milestones and completions. Key revenue streams come from the execution of road and highway projects, as well as major irrigation and water management initiatives. Additionally, KNRCON may engage in joint ventures or partnerships with governmental bodies, which can provide access to larger projects and stable revenue sources. The company's financial performance is further supported by its ability to manage project costs effectively and deliver projects on time, enhancing its reputation and likelihood of securing future contracts.

KNR Constructions Limited Financial Statement Overview

Summary

Strong income statement (revenue growth and healthy margins) and a stable balance sheet with solid equity support the score, but it is moderated by rising leverage and weaker cash generation (negative free cash flow and negative operating cash flow to net income), which increase liquidity risk.

Income Statement

KNR Constructions Limited exhibits strong revenue growth with consistent increases over the years. Gross profit and net profit margins have been robust, indicating effective cost management. The EBIT and EBITDA margins are healthy, supporting profitability. The company demonstrates a solid growth trajectory, enhancing its market positioning.

Balance Sheet

The company maintains a strong equity position with a favorable equity ratio, indicating financial stability. However, the rising debt-to-equity ratio suggests increasing leverage, which could pose a risk if not managed properly. The return on equity remains positive, reflecting efficient use of shareholders' equity to generate profits.

Cash Flow

KNR Constructions faces challenges with negative free cash flow, primarily due to high capital expenditures. The operating cash flow to net income ratio is negative, highlighting potential liquidity concerns. However, the company manages to sustain its operations through financing activities, suggesting reliance on external funding.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	43.81B	47.53B	44.43B	40.62B	36.06B	29.04B
Gross Profit	19.94B	17.02B	13.76B	14.30B	11.68B	5.86B
EBITDA	17.09B	18.00B	11.76B	9.75B	8.49B	8.19B
Net Income	9.53B	10.02B	7.77B	4.58B	3.82B	4.07B
Balance Sheet
Total Assets	0.00	71.31B	58.04B	43.42B	52.70B	40.07B
Cash, Cash Equivalents and Short-Term Investments	3.85B	3.85B	3.96B	2.06B	1.63B	1.43B
Total Debt	0.00	18.49B	12.62B	6.52B	14.64B	7.64B
Total Liabilities	-45.41B	25.90B	23.06B	15.94B	27.11B	20.31B
Stockholders Equity	45.41B	45.41B	35.54B	27.79B	23.28B	19.68B
Cash Flow
Free Cash Flow	0.00	-6.53B	-3.99B	10.40B	-6.94B	-1.72B
Operating Cash Flow	0.00	-6.25B	-3.16B	11.94B	-3.36B	-755.88M
Investing Cash Flow	0.00	-3.14B	-150.80M	668.13M	-4.08B	2.60B
Financing Cash Flow	0.00	6.86B	4.96B	-12.17B	7.65B	-978.30M

KNR Constructions Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 159.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KNRCON, the sentiment is Positive. The current price of 159.9 is above the 20-day moving average (MA) of 143.94, above the 50-day MA of 151.12, and below the 200-day MA of 192.35, indicating a neutral trend. The MACD of -0.83 indicates Negative momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 86.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:KNRCON.

KNR Constructions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNRCON	74 Outperform	₹43.44B	7.16	―	0.16%	-42.73%	-44.36%
PATELENG	66 Neutral	₹27.83B	9.70	―	―	12.37%	-22.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DBL	60 Neutral	₹75.54B	10.23	―	0.21%	-13.57%	40.24%
HGINFRA	60 Neutral	₹43.87B	10.32	―	0.25%	-8.92%	-22.83%
HCC	45 Neutral	₹51.97B	29.23	―	―	-31.50%	-74.38%
SIMPLEXINF	44 Neutral	₹18.30B	31.52	―	―	-19.24%	-35.09%

KNR Constructions Limited Corporate Events

KNR Constructions Wins Key Tax Appeals, Awaits Final Assessment Orders

KNR Constructions Limited has received favourable orders from the Commissioner of Income Tax (Appeals) – 12, Hyderabad, for assessment years 2017-18 to 2020-21, allowing the company’s appeals against earlier disallowances made by the Assessing Officer. The earlier tax demands had arisen from disallowances of deductions claimed under Section 80-IA of the Income Tax Act and an arbitration claim related to one of its projects, and the appellate orders now support the company’s position. KNR Constructions is awaiting consequential orders from the Assessing Officer to implement the appellate decisions, and therefore the exact financial and operational impact cannot yet be quantified, though the outcome is potentially positive for the company’s tax liabilities and cash flows and will be closely watched by investors and other stakeholders.

KNR Constructions Secures Major Bridge Project

KNR Constructions Limited has received a Letter of Acceptance from Musi Riverfront Development Corporation Limited for the construction of an iconic bridge across Mir Alam Tank. This project, valued at over Rs. 319 crore, is expected to enhance KNR’s portfolio in infrastructure development and strengthen its market position in the EPC sector. The project is scheduled to be completed in 24 months, potentially impacting the company’s operational capabilities and stakeholder interests positively.

KNR Constructions Schedules Investor Conference Call to Discuss Q2 Financial Performance

KNR Constructions Limited has announced that its officials will participate in an investor conference call to discuss the company’s financial performance for the quarter ended September 30, 2025. This event, scheduled for November 13, 2025, will provide insights into the company’s financial health and strategic direction, potentially impacting its market positioning and stakeholder interests.