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What is the expected share price growth for KNR Constructions? Is it a good buy?
KNR Constructions has generated good returns for shareholders within the last year but share price is down from the peak of 415 to 338 now. The company has good business and has executed several projects including highway projects, irrigation, and urban infra projects for the governments of Telangana, Andhra Prades,h, and Karnataka. Profits have almost tripled from 265 crores in 2019 to 752 crores in 2024. Promoter holding has reduced but is still at a healthy 48%. As far as valuation is concerned. the PE Ratio is still low hovering at around 8. What do you think will be the returns for shareholders in the future, considering that the company has a good order book for around Rs 44.1 billion from the road HAM segment, irrigation, and pipeline projects? Can the order book portfolio ensure steady revenue generation across sectors and continue to produce good returns for shareholders?1
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