KNR Constructions rallies 6%, hits 52-week high on Rs 604 crore order win

The recently won contract is likely to strengthen KNR's order position further, said ICICI Securities

Shares of KNR Constructions rallied 6 per cent to Rs 353, also its 52-week high, on the BSE on Tuesday after the company secured an order worth Rs 603.60 crore for Chennai-Kanyakumari Industrial Corridor Project.

“The order is towards upgrading Cheyyur-Vandavasi Polur Road including ECR Link Cheyyur -Panayur Road to two-lane, and construction of bypasses for Vandavasi town and Chetpet town. It includes one realignment for Maruthadu Village and maintenance of entire project stretch for seven years in Tamil Nadu in engineering, procurement and constructions (EPC) mode,” KNR Constructions said in an exchange filing. The project to be completed within a period of 39 months from the appointed date, it said. READ HERE

KNR’s order book at the end of September 2020 was at Rs 8,555 crore (order book to TTM bill: 3.7x). It has secured orders worth around Rs 3,190 crore during April-September (H1FY21). "The recently won contract is likely to strengthen its order position further. Overall, we believe KNR is in line to achieve its order inflow target of Rs 20-2,500 crore in October-March (H2FY21). This is to be backed by strong order pipeline by the National Highways Authority of India (NHAI) in southern states," ICICI Securities said in a note.

At 09:30 am, the stock was trading 4 per cent higher at Rs 347 on the BSE as compared to a 0.11 per cent decline in the S&P BSE Sensex. A combined 521,000 equity shares had changed hands on the counter on the NSE and BSE, data showed.