KNR Construction Q3 Results Review - Slower Order Win A Concern: Axis Securities

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Axis Securities Report

KNR Construction Ltd.’s order book remains robust at Rs 8,100 crore, giving revenue visibility for the next two-three years. With a healthy National Highway Authority of India pipeline, we expect the company to receive better order intake which shall drive its revenue growth moving forward.

We expect the company to grow its revenue at a compound annual growth rate of 11% over FY22- FY24E.

KNR Construction is looking to diversify to other segments such as railway and metros to keep the revenue stream unaffected apart from the road segment. With newer opportunities emerging in various infra-related sectors, further diversification strategy augurs well for the company.

The absence of major order wins to date in FY23 remains a concern. However, KNR’s policy of not chasing orders at a lower margin is worth appreciating.

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Axis Securities KNR_Construction Results Update.pdf

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