KNR Constructions Ltd

 

KNR Constructions Ltd
Construction & Engineering
FV – Rs 2; 52wks H/L –201.7/81.6; TTQ – 11.2 Lacs; CMP – Rs 184 (As On January 23, 2017);                      

            Market Cap – Rs 2600 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
28.12 697 631 1038 126.39 248 44.95 4.1 20.76 0.74 58.09 1.04
  • Promoter stake have decreased to 58.09% from 60.75% in June,2016
  • On 13/12/2016 there was a stock split from Rs.10 per share to Rs.2 per share.

 

Standalone Financials and Valuations for H1 FY17


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
28.12 805 126 677 74.14 286 26.37 7 20.76 0.64 58.09 1.04

 

Valuation Parameters:

  1. Long Term Debt to Equity – 0.91
  2. ROE % – 18
  3. Market Cap/Sales – 0.4
  • As on 31st March, 2016, the order book stood at about Rs. 3463 Crs comprising of Rs. 3406 Crs in road sector and Rs. 57 Crs in irrigation projects.
  • KNR’s mainstay for revenue is EPC orders for road projects. Its order book has been growing at a fast clip since 2015. It won new orders totalling ₹1,334 crore in 2016-17, taking the total outstanding orders to ₹4,579 crore as of September 2016.
  • KNR sold two of its operational annuity-based BOT projects for ₹850 crore in November 2016. The cash will provide capital for construction, and the management has indicated that it is part of its strategy to focus on EPC business.

 

Overview:

  • KNR Constructions Ltd is a multi-domain infrastructure project development company.
  • The Company undertakes engineering, procurement and construction (EPC) contracts, as well as build-operate-transfer (BOT) projects across various sectors, such as construction and maintenance of roads, highways, flyovers and bridges.
  • Its range of verticals also include irrigation projects, water management, agriculture and trading business.
  • It has completed approximately 5,890 kilometers of projects across over 10 states in India.
  • Its urban water infrastructure management project is Challaghatta Main Valley Project, which involves the remodeling of primary and secondary storm drains, bridges/culverts and related works in Challaghatta Main Valley in Bangalore City.
  • The Company’s irrigation and water management projects include Shankara Samudram Balancing Reservoir, Eastern Kosi Canal system, Reservoir across Mathadivagu and Budpur Balancing Reservoir.

 

Ongoing Major Projects:

  1. Bijapur – Hungung Section of NH – 13 – Karnataka
  2. Lumding to Lanka section i/c Lamka Bypass of NH – 54 – Assam
  3. Ganjam – Sunakhala of NH – 5 – Orissa
  4. Madurai – Kanyakumari of NH – 7 – Tamil Nadu
  5. Outer Ring Road , Hyderabad City

 

Bulk Deals:

Deal Date Client Name Deal Type Quantity Price (Rs.)
16-Jan-17 Copthall Mauritius Investment Ltd S 3692549 170.52
16-Jan-17 HSBC Global Investment Fundsasia Ex Japan P 3641732 170.5
25-Jul-16 Kamidi Narsimha Reddy S 650000 575
25-Jan-16 Copthall Mauritius Investment Ltd P 195356 500

 

Management:

  • K. Narasimha Reddy – MD
  • K. Jalandhar Reddy – CFO

Major Non – Promoter Holdings:

Sr.No Non – Promoters No. of Shares held % of Shares held
1 DSP Blackrock India Tiger Fund 1482335 1.05
2 Tata Trustee Co. Ltd A/c 1875000 1.33
3 Tata Equity Opportunity Fund 1900000 1.35
4 ICICI Prudential India Recovery Fund Series 2 2102545 1.5
5 ICICI Prudential Infrastructure Fund 2405545 1.71
6 Franklin India Smaller Companies Fund 2510180 1.79
7 HDFC Trustee Co. Ltd 11738985 8.35
8 Copthall Mauritius Investment Ltd 4003640 2.85

 

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 28.12 28.12 28.12 28.12 28.12 28.12
Networth 697 788 611 464 418 374
Total Debt 737 760 393 144 53 66
Net Sales 1038 944 912 783 903 1054
Other Income 42 13 17 18 11 3
PAT 126.39 69.76 60.46 49.08 46.81 57.98
Book Value (Rs) 248 280 217 165 149 133
EPS (Rs) 44.95 24.81 21.50 17.45 16.65 20.62

 

The Company’s Net Profit after Tax and extraordinary expenses during the year was Rs. 126.39 crore as compared to Rs. 69.76 crore in FY15. This exceptional amount was due to Income tax refund of previous years on account of 80IA benefit and interest on tax refund classified as other Income.