Dear ,

Add KNR Contructions Ltd (NSE:KNRCON) at 315. Fair price 450. 

We see the stock at 750-900 in 24-36 months.

Pro:

1. Strong recent quarterly results.
2. Strong Balance sheet.
3. Higher return on Equity and Low Price to Book.
4. Strong Sale and Profit growth in recent years.

Good stock to hold for both Short term and Long term.

About

KNR Constructions Ltd, incorporated in 1995, is a Hyderabad-based infrastructure project development company providing EPC services in segments such as roads and highways, irrigation and urban water infrastructure management.

Key Points 

Services

The services of the Co include construction of roads, highways, bridges and flyovers on EPC, BOT and Hybrid Annuity Model (HAM) basis. It also undertakes Irrigation projects, urban water infrastructure management and agriculture projects.

Order Book

Order book as on Dec 23 : Rs.4,964.6 Cr.

Roads(HAM) : 42%

Irrigation: 31%

Roads(Others): 27%

Client

Some of the customers of the Co include National Highways Authority of India (NHAI), Ministry of Road Transport & Highways (MoRTH), Government of Telangana, Karnataka State Highway Improvement Project (KSHIP), Madhya Pradesh Road Development Corporation Ltd (MPRDCL), etc. 

Execution Capabilities

The Co has executed more than ~8700 lane km of road projects till date. It has a track record for execution of projects before the scheduled timeline and receipt of early completion bonuses from the relevant authorities.

In-house Equipment

The Co has a large fleet of ​​world-class construction equipment. It has 1287 Tippers & Tankers, 402 Excavators, 289 Generators, 48 Rollers among other equipments.

Future Outlook

1. In FY24, the company expects the revenue to increase to Rs.4,000 Cr. - Rs. 4,100 Cr.

2. The company invested equity of Rs. 148.7 Cr. and Rs. 109.6 Cr. in FY23 and Q1FY24, respectively; the balance equity commitments amount to Rs.583.8 Cr., with annual estimated commitments of Rs.146 Cr. in FY24 and about Rs. 290 Cr. in FY25.

Capex

Company did a capex of Rs.70 Cr in 9MFY24, expects to be Rs.90 Cr - Rs. 100Cr for FY24.

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We have restructured our pricing to yearly Rs. 5000/-

We are maintaining strong CAGR of above 36% for Screener stocks, SIP10Kto16Cr portfolio and even our Short and Sweet stocks.

We are closing our Lifetime membership deal of Rs. 12,000/- one time fee in 2024. Lifetime members will remain Lifetime members.

If you are not our member yet and interested to gain access to yearly membership or lifetime membership, share your name and number in reply to this email.

Best regards,

Vinoth Kanna

Admin, Gale Wealth Guide