 "KNR Constructions hits 52-week high ahead of Board meet; up 12% in one week")
Shares of KNR Constructions hit a fresh 52-week high of Rs 332, up 4.4 per cent, on the BSE on Friday ahead of the company's board meeting due later today to consider bonus issue proposal. In the past one week, stock of the construction & engineering company has rallied 12 per cent, as compared to a 1.5-per cent gain in the S&P BSE Sensex.
On Monday, December 14, KNR Constructions informed the stock exchanges that a meeting of the board of directors of the Company is scheduled to consider declaration of bonus shares and other related issues.
In July-September quarter (Q2FY21), KNR Construction reported 85 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 153.9 crore. EBITDA (earnings before interest, taxes, depreciation, and amortization) margin remained strong at 26.1 per cent on account of the rising share of higher margin irrigation projects, resulting in a strong beat on earnings.
The company said its order book stood strong at Rs 8,550 crore, of which Rs 4,693 crore from road sector and Rs 3,862 crore from irrigation sector. The management also said the company would aim to add more business verticals to the organisation in the fields of construction of Elevated Metro Rail and Railway Projects.
"With our strong balance sheet and proposed monetisation of assets, there shall be enough liquidity to bid for NHAI's new projects. Our committed, dedicated construction professionals and workers are our great supporting strength in achieving sustainable growth," the company said in financial year 2019-20 annual report.
In spite of a recent increase in receivables, Motilal Oswal Financial Services believe KNR Construction's strong balance sheet gives it a key competitive advantage v/s peers in bidding for newer projects and in terms of strong execution, despite financing challenges in the sector as the dependency on bank financing is minimal.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%