KNRCON - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

📊 Core Financials & Profitability

Profitability: Quarterly PAT dropped from ₹75.2 Cr to ₹51.3 Cr (−31.8%), but EPS of ₹22.9 remains strong for a ₹208 stock.

Return Metrics

ROE: 20.5% and ROCE: 27.4% — excellent, indicating high capital efficiency.

Debt Profile: Debt-to-equity at 0.00 — debt-free, a major strength in the infra sector.

Dividend Yield: 0.12% — minimal, but consistent with reinvestment strategy.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 8.91 Deeply undervalued vs. industry PE of 20.6.

P/B Ratio ~1.49 Fairly priced relative to book value ₹140.

PEG Ratio 0.34 Very attractive — growth is reasonably priced.

🔍 Conclusion: KNR Constructions is undervalued based on earnings and growth metrics. PEG and P/E suggest strong upside potential.

🏗️ Business Model & Competitive Edge

Core Operations: KNR Constructions is a leading EPC contractor in roads, highways, and irrigation projects.

Strategic Strengths

Strong execution track record and asset-light model.

High operating margins and zero debt enhance resilience.

Consistent cash flows and low working capital cycle.

Growth Outlook

Despite a recent dip, the company saw a sharp rebound on September 17, 2025, gaining 11.43% intraday

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Analysts rate it a “Strong Buy” at lower levels due to its deluxe earnings profile and steel-like valuation strength

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📉 Technicals & Entry Zone

RSI: 59.9 — neutral, slightly bullish.

MACD: −1.40 — mild bearish signal.

DMA Levels: Price near 50-DMA and below 200-DMA — short-term weakness, long-term opportunity.

📌 Suggested Entry Zone: ₹195–₹210 — near support levels and technical averages.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, zero debt, and infra tailwinds support long-term value.

Buy on Dips: Especially if price nears ₹195 or RSI dips below 55.

Monitor: Order inflow, execution timelines, and quarterly margin trends.

You can explore KNRCON’s September rebound and technical outlook or review its valuation and price targets for deeper insights. Let me know if you'd like a peer comparison with PNC Infra or HG Infra next.

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www.marketsmojo.com

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www.stocks-buy.com

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