India's KNR Constructions falls on lack of order wins, inflation concerns

KNR Constructions

10/02/2023 07:31

** Shares of KNR Construction  KNRL.NS  fall as much as
3.08% to 259.20 rupees, steepest intraday decline since Feb. 1
    ** Infrastructure company on Thursday reported more than 2x
YoY increase in Q3 consolidated net profit
    ** However, analysts term performance "weak" due to
moderation in roads revenues
    ** Co's gross margin under pressure due to commodity price
inflation, says global brokerage firm Nomura; maintains
'neutral' rating
    ** Current orderbook has been depleting over FY23 so far on
lack of large order wins - Nomura
    ** Motilal Oswal says co's profitability witnessed a sharp
rise on account of exceptional profit of 1.4 bln rupees from
stake sale in KNR Tirumala, KNR Shankarampat and KNR Srirangam
    ** However, core profit margin contracted sequentially due
to muted execution - Motilal Oswal
    ** Trading volume is ~0.7x the 30-day avg of 423,000 shares
as of 12:25 p.m. IST - Refinitiv data
    ** Out of 19 analysts, 17 rate stock 'buy' or 'strong buy',
2 'hold;' median TP is 304 rupees - Refinitiv data
 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; Mobile:
+919769003463))