KNR Constructions Limited (KNRCON) AI Stock Analysis

• Market Cap: ₹55.85B
• Dividend Yield: 0.12%
• Average Volume (3M): 71.24K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.29
• Revenue Growth: -1.35%
• EPS Growth: 17.20%
• Country: IN
• Employees: 5,491
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 1.80
• Shares Outstanding: 281,234,600
• 10 Day Avg. Volume: 65,611
• 30 Day Avg. Volume: 71,239
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹235.00
• Price Target Upside: 18.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ₹235.00 ▲(18.48% Upside)

KNR Constructions Limited exhibits strong financial performance, particularly in profitability and revenue growth, making it a key strength. However, cash flow challenges and increasing leverage are concerns that could impact future stability. Technically, the stock shows mixed indicators with limited upward momentum. The valuation appears attractive with a low P/E ratio, suggesting potential undervaluation.

KNR Constructions Limited Business Overview & Revenue Model

Company Description

KNR Constructions Limited (KNRCON) is an infrastructure development company based in India. It specializes in the construction of roads, highways, and irrigation projects, primarily serving government and private sector clients. The company is involved in both engineering, procurement, and construction (EPC) projects and Build-Operate-Transfer (BOT) projects, contributing to India's infrastructure growth and development.

How the Company Makes Money

KNR Constructions Limited generates revenue through its engagement in EPC and BOT projects. In EPC projects, the company earns by executing contracts awarded by government bodies or private entities, which can include construction, maintenance, and operation services. BOT projects involve KNRCON financing, constructing, and operating infrastructure projects for a specified period, after which the assets are transferred back to the government. This model allows KNRCON to collect tolls or other usage fees during the operation phase, providing a steady revenue stream. Key revenue streams include contract payments from EPC projects, toll collections from BOT projects, and potential annuity payments for maintaining infrastructure. Significant partnerships with governmental agencies and private clients play a crucial role in securing contracts and ensuring ongoing business.

KNR Constructions Limited Financial Statement Overview

Summary

KNR Constructions Limited exhibits strong revenue growth and profitability with robust margins. While the balance sheet shows financial stability, increasing leverage is a concern. Cash flow challenges due to high capital expenditures and negative operating cash flow need addressing for sustainability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2022
Income Statement
Total Revenue	47.53B	44.43B	40.62B	27.37B	33.09B
Gross Profit	17.02B	13.76B	14.30B	7.42B	8.58B
EBITDA	18.00B	11.76B	9.75B	8.19B	8.49B
Net Income	10.02B	7.77B	4.58B	4.07B	3.82B
Balance Sheet
Total Assets	71.31B	58.04B	43.42B	40.07B	52.70B
Cash, Cash Equivalents and Short-Term Investments	3.85B	3.96B	6.22B	1.43B	1.63B
Total Debt	18.49B	12.62B	6.52B	7.64B	14.64B
Total Liabilities	25.90B	23.06B	15.94B	20.31B	27.11B
Stockholders Equity	45.41B	35.54B	27.79B	19.68B	23.28B
Cash Flow
Free Cash Flow	-6.53B	-3.99B	10.40B	-1.72B	-6.94B
Operating Cash Flow	-6.25B	-3.16B	11.94B	-755.88M	-3.36B
Investing Cash Flow	-3.14B	-150.80M	668.13M	2.60B	-4.08B
Financing Cash Flow	6.86B	4.96B	-12.17B	-978.30M	7.65B

KNR Constructions Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 198.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KNRCON, the sentiment is Negative. The current price of 198.35 is below the 20-day moving average (MA) of 211.86, below the 50-day MA of 215.89, and below the 200-day MA of 255.86, indicating a bearish trend. The MACD of -4.92 indicates Positive momentum. The RSI at 25.71 is Positive, neither overbought nor oversold. The STOCH value of 6.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KNRCON.

KNR Constructions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HGINFRA	66 Neutral	₹63.53B	14.38		0.21%	-9.81%	-19.80%
KNRCON	66 Neutral	₹55.85B	5.86		0.12%	-1.35%	17.20%
PATELENG	64 Neutral	₹31.93B	11.99		―	15.42%	-13.01%
DBL	61 Neutral	₹71.56B	8.59		0.20%	-11.92%	176.97%
Sector *	60 Neutral	C$7.16B	-0.51	-4.14%	2.34%	9.17%	-34.08%
SIMPLEXINF	51 Neutral	₹21.06B	63.46		―	-20.46%	-63.52%
HCC	41 Neutral	₹46.49B	28.80		―	-29.25%	-66.38%

KNR Constructions Limited Corporate Events

KNR Constructions Divests Stake in Tollway Project

KNR Constructions Limited has announced the transfer of its entire 0.65% shareholding in KNR Muzaffarpur – Barauni Tollway Private Limited to Mr. Gaurav Jalan, a promoter and director of JKM Infra Projects Limited. The transaction was completed on April 8, 2025, with KNR receiving Rs. 45.90 lakh, equivalent to its initial investment. This move is part of a strategic realignment, potentially impacting KNR’s financials by divesting a non-core asset, which contributed 0.91% to the consolidated turnover in the last financial year.