KNR Construction is likely to remain in focus after two key brokerages — Antique and Motilal Oswal (MOSL) — issued cautious views on the stock, citing execution challenges and subdued order inflows.
Antique maintained a Hold rating on KNR Construction but cut its target to ₹217 from ₹269. The brokerage highlighted that order inflows are critical for growth and has reduced EPS estimates by 16%/13% for FY26-27E owing to weak execution and muted order wins.
On a positive note, Antique pointed out that the company is expecting order inflows of ₹80-100 billion over the next 3-4 months, which will be crucial for outlook improvement.
Meanwhile, Motilal Oswal (MOSL) downgraded KNR Construction to Neutral from Buy and cut the target price to ₹210.
MOSL flagged a miss on execution and a lack of order inflows, which could cap near-term growth. It expects subdued execution in FY25 and believes the thin order book will limit revenue CAGR to just 6% over FY25-27E.
EBITDA margin estimates have been revised down to 14-15% from the earlier 16-17% range.
Further, MOSL has sharply cut revenue estimates by ~18%/24% and EBITDA estimates by ~32%/33% for FY26/FY27 due to the slowdown in new project awards.
Overall, brokerages remain cautious on KNR Construction in the near term and flagged that order inflows and execution ramp-up will be key monitorables for any re-rating in the stock.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
