KNRCON - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Here’s a detailed analysis of KNR Constructions (KNRCON) — a consistent infrastructure performer currently trading at value territory 🏗️📉

🧮 Core Financials Overview

Profitability

ROE (27.5%) and ROCE (29.2%) — exceptional capital efficiency, well above industry norms.

EPS: ₹35.6 — robust earnings relative to its market price.

Quarterly Performance

PAT dipped from ₹248 Cr to ₹81.3 Cr (-76.1%) — sharp drop; likely due to project completion cycles or one-off income in previous quarter.

Balance Sheet

Debt-to-equity: 0.41 — moderate leverage, reasonable for infra sector.

Dividend Yield: 0.12% — minimal; company reinvests heavily into growth.

📊 Valuation Metrics

Metric Value Interpretation

P/E Ratio 5.36 Deeply undervalued vs. industry PE of 23.8

P/B Ratio ~1.32 Fairly priced near book value

PEG Ratio 0.11 🔥 Indicates high growth potential at low price

📌 KNRCON trades in value zone, especially based on PEG and P/E — makes a strong case for long-term accumulation.

🏗️ Business Model & Strategic Advantage

Key player in road and highway construction, primarily operating under EPC and HAM models.

Known for debt discipline, focused execution, and efficient project turnaround.

Government's infrastructure push via NHAI and Bharatmala remains a demand catalyst.

FII inflows (+0.15%) hint at rising foreign interest; but DII outflows (-3.21%) suggest domestic caution, possibly due to profit booking or liquidity shift.

📉 Technical & Entry Zone Insight

Current Price: ₹213, trading below DMA-50 (₹221) and DMA-200 (₹252) — technical downtrend.

RSI: 38.8 — nearing oversold territory.

MACD: -0.46 — still bearish, but stabilizing.

🎯 Suggested Entry Zone: ₹195–₹215 🧱 Support: ₹189 (52-week low) 🔼 Resistance: ₹225–₹240

Accumulation near support zones could offer attractive upside as sentiment rebounds.

⏳ Long-Term Holding Outlook

Strong fundamentals make KNRCON a quality hold for 3–5 years, especially if infra capex picks up pace.

Key factors to monitor: order book growth, execution timelines, and margin consistency.

Looking to build a smart infra basket? Let me line up comparisons with peers like PNC Infratech, HG Infra, or Dilip Buildcon to help sharpen the edge 🚧📈.

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