1QFY2017 Result Update | Infrastructure
August 18, 2016
KNR Constructions
BUY
CMP
`699
Performance Highlights
Target Price
`802
Investment Period
12 Months
Quarterly highlights - Standalone
Y/E March (` cr)
1QFY17*
1QFY16*
% chg (yoy)
Stock Info
Net sales
304
175
73.9
Sector
Infrastructure
EBITDA
44
28
57.2
Market Cap (` cr)
1,630
Adj. PAT
30
16
86.7
Net debt (` cr)
72
Source: Company, Angel Research; *Reported as per Ind AS, FY2016 numbers & other remaining
Beta
1.2
quarters continue to be reported as per Indian GAAP; It needs to be noted that yoy growth for
52 Week High / Low
726/408
FY2017E is not comparable as FY2016 continues to be reported under Indian GAAP
Avg. Daily Volume
3,229
KNR Constructions (KNR) reported strong set of 1QFY2017 numbers. On the
Face Value (`)
10
top-line (standalone) front, it reported 73.9% yoy increase to `304cr (ahead of
BSE Sensex
28,005
our estimate of `249cr). 48% of 1QFY2017 revenues were from (1) Madurai-
Nifty
8,624
Ramanathapuram project (`68cr), (2) Trivandrum bypass project (`44cr) and
Reuters Code
KNRL.BO
(3) Penchalakona-Yerpedu project (`35cr). EBITDA and PAT numbers were ahead
Bloomberg Code
[email protected]
of our estimate at `44cr and `30cr, respectively (v/s our estimate of `37cr and
`25cr, respectively).
Shareholding Pattern (%)
KNR’s order book as of now stands at ~`4,925cr, which gives strong revenue
Promoters
60.8
visibility for over the next 3 years.
MF / Banks / Indian Fls
25.5
FII / NRIs / OCBs
4.0
Valuation: KNR in our view enjoys (1) strong execution track record, (2) better
Indian Public / Others
9.8
cost structure (reflected in better EBITDA & PAT margins vs some of its peers),
(3) shorter working capital cycle, (4) low leverage (since FY2011, D/E ratio has
been ~0.2x), and (5) impressive RoEs (12.1-24.9% range during FY2011-16). All
Abs. (%)
3m 1yr 3yr
these factors indicate KNR’s superior earnings quality, and strengthen our view
Sensex
8.7
0.3
56.6
that KNR would continue to trade at premium valuations. On valuing standalone
KNR
34.4
24.5
237.6
entity at 15.0x to our FY2018E EPS of `48.5, and adding value for its Kerala &
Muzaffarpur BOT projects, we arrive at FY2018E sum-of-the-parts (SoTP) based
3-Year Daily Price Chart
price target of `802/share, implying 15% upside from current levels. Given the
800
upside in the stock, we maintain our Buy rating on the stock.
600
Key financials (Standalone)
400
Y/E March (` cr)
FY14
FY15
FY16
FY17E
FY18E
200
Net Sales
837
876
885
1,385
1,673
0
% chg
21.5
4.7
1.0
56.5
20.8
Net Profit
61
73
161
116
136
% chg
17.0
19.7
120.7
(28.0)
17.7
Source: Company, Angel Research
EBITDA (%)
15.3
14.4
15.6
14.7
14.0
EPS (`)
21.7
26.0
57.3
41.2
48.5
P/E (x)
32.2
26.9
12.2
17.0
14.4
P/BV (x)
3.8
3.5
2.7
2.4
0.0
RoE (%)
12.6
13.5
24.9
14.9
15.2
RoCE (%)
15.4
13.8
19.1
18.8
19.2
Yellapu Santosh
EV/Sales (x)
2.4
2.3
2.3
1.5
1.2
022 - 3935 7800 Ext: 6811
EV/EBITDA (x)
16.0
16.2
13.3
10.1
8.8
[email protected]
Source: Company, Angel Research; CMP as of August 17, 2016
Please refer to important disclosures at the end of this report
1
KNR Constructions | 1QFY2017 Result Update
Exhibit 1: Quarterly Performance (Standalone)
Particulars (` cr)
1QFY17*
1QFY16*
% chg (yoy)
Net Sales
304
175
73.9
Total Expenditure
259
147
77.1
Cost of materials consumed
79
84
(5.5)
Sub-Cont., Spreading & Assort. Exp.
138
34
302.2
Employee benefits Expense
13
10
32.2
Other Expenses
29
19
58.2
EBITDA
44
28
57.2
EBIDTA %
14.5
16.1
Depreciation
13
10
27.6
EBIT
31
18
74.4
Interest and Financial Charges
4
3
57.1
Other Income
5
4
45.2
PBT before Exceptional Items
32
19
71.1
Exceptional Items
0
0
PBT after Exceptional Items
32
18.76
71.1
Tax
2
3
% of PBT
5.9
13.7
PAT
30
16
86.7
Other Comprehensive Inc.
(0)
(0)
Total Comprehensive Inc.
30
16
87.2
PAT %
10.0
9.3
Dil. EPS
10.74
5.76
86.5
Source: Company, Angel Research; Note: nmf- Not meaningful;*Reported as per Ind AS, FY2016
numbers & other remaining quarters continue to be reported as per Indian GAAP; It needs to be
noted that yoy growth for FY2017E is not comparable as FY2016 continues to be reported under
Indian GAAP
Standalone Business Review
Strong execution seen during the quarter…
KNR reported strong execution during the quarter, reflecting 73.9% yoy revenue
growth in 1QFY2017 to `304cr. Reported revenues were ahead of our estimate of
`249cr. 48% of 1QFY2017 revenues were booked from (1) Trivandrum bypass
project
(`44cr),
(2) Madurai-Ramanathapuram project
(`68cr), and
(3)
Penchalakona-Yerpedu project (`35cr).
EBITDA margin declines 154bp yoy to 14.5%
KNR reported an EBITDA of `44cr, ahead of our estimate of `37cr. Reported
EBITDA margins were at 14.5%, lower than year ago levels of 16.1% (reflecting
154bp yoy decline). Decline in yoy EBITDA margin was on account of 302.2%
increase in sub-contracting, spreading and assorting expenses to `138cr (a/c’s for
45.4% of 1QFY2017 sales) and 58.2% increase in other expenses to `29cr.
August 18, 2016
2
KNR Constructions | 1QFY2017 Result Update
PAT margin expands to 10.0%
KNR reported PAT of `30cr, ahead of our estimate of `25cr. Despite yoy EBITDA
margin decline, reported PAT margins expanded to 10.0%, ahead of
9.3%
reported year ago. KNR benefitted from lower tax rate of 5.9% during the quarter
vs. 13.7% reported year ago. Lower effective tax rate for the quarter is on account
of `5.6cr of MAT credit.
Strong Order Inflow seen during YTD FY2017
In 1QFY2017 KNR reported 2 major order wins worth `1,103.5cr (adj. for stake).
These 2 order wins include (1) `415cr of EPC road order covering Dindigul-
Bangalore road project, and (2) 2 irrigation packages worth `984cr on JV basis.
KNR has 70% stake in this JV, where this Telangana Irrigation project is expected
to be executed in next 30 months.
In 2QFY2017, KNR reported Hubli-Hospet stretch worth `1,335cr on JV basis to
be executed in 36-months. For their 50% stake, KNR’s shares stands at `667cr.
To-date in FY2017, KNR (for their share) has reported order wins of `1,771cr.
Management has guided for another `1,000-1,500cr of order win for remaining
part of FY2017E.
Exhibit 2: Order Inflows to see uptrend
Exhibit 3: Order Book gives better revenue visibility
4,500
9,000
1.0x
4,000
8,000
0.9x
0.9x
3,500
7,000
0.8x
3,000
0.7x
6,000
0.7x
2,500
0.6x
5,000
0.5x
0.5x
2,000
4,000
0.4x
0.4x
0.4x
1,500
3,000
0.3x
0.3x0.3x
1,000
2,000
0.2x
0.2x
500
1,000
0.1x
0
FY13
FY14
FY15
FY16
YTDFY17
FY17E
FY18E
0
0.0x
(500)
FY11
FY12
FY13
FY14
FY15
FY16
FY17E FY18E
(1,000)
Order Inflows (` cr)
OB (` cr)
Execution Rate (x)
Source: Company, Angel Research
Source: Company, Angel Research
Recent order wins from road vertical take the total Order book to `4,925cr. This
has resulted in current Order book/ last twelve month (LTM) sales ratio at 4.9x (vs
1.2x at 4QFY2015-end). The current order book gives strong revenue visibility for
over next 3+ years.
Concall Takeaways
During the quarter, KNR invested
`171.5cr as quasi equity in Walayar-
Vadakkancherry BOT Project for loan repayment. Post this investment, total equity
investment in the project has increased to `307cr (reflecting D/E ratio of 1.0x,
allaying any concerns over debt re-payment). KNR expects to infuse another `80-
100cr towards the equity (which would be used for repayment) going forward.
Management indicated that it is open to sell this BOT asset in long-run, once it
gains some traction and they get valuations at least at par value.
August 18, 2016
3
KNR Constructions | 1QFY2017 Result Update
For the Muzaffarpur Barauni BOT project, where KNR has 51% stake, all required
equity infusion of `52cr has been made. This SPV has received 75% provisional
completion certificate on Jun 3, 2016. With EPC works complete, KNR has already
applied for 100% CoD, and expect favorable outcome in next 1-2 months. Also,
some nearby packages with bridge works are not yet complete. On completion of
these stretches and getting 100% CoD, management expects increase in Net toll
from the current `6 lakh/day to `10 lakh/day.
Arunachal Pradesh EPC project where KNR is the JV partner with JKM Infra projects
is expected to get in to full swing by Oct-2017. Owing to monsoons, no major
works are being taken-up (lastly earthworks were done). Management expects to
book `5cr/month of revenue from this project and finish 80-85% of total project by
Dec-2016.
Of the total Order book of `4,925cr, roads have majority share (72% of the order
book). Within the Roads vertical, `1,000cr worth of orders are to be constructed as
Concrete Roads. As a result management has guided for `80-85cr of capex
towards the Construction Equipments (esp. Paver equip.) in FY2017E (incorporated
the same in to our model).
Management has highlighted that it does not receive any mobilization advance for
Irrigation projects (vs. the 10% industry norm seen across some of the verticals).
Also, share of Irrigation vertical’s order wins to the total has increased in recent
times to 18%. As a result, management has guided for 5-10 days increase in the
working capital cycle (incorporated the same in to our model).
Despite sitting on an order book of `4,925cr (recent OB/LTM ratio at 4.9x),
Management has conservatively guided for `1,200/1,500cr for FY2017/18E.
Management expects EBITDA margins to be in 13.5-14.5% range. On account of
sec. 80IA benefits, management has guided for 8-10% tax rate in FY2017E and
12% in FY2018E.
Revision of Earnings Estimate
Considering strong 1QFY2017 results, strong order book (which gives visibility on
strong execution), management guidance, we revise our FY2017-18E, estimates.
Exhibit 4: Earnings Revision
FY2017E
FY2018E
Y/E March (` cr)
Old
New Chg. (%)
Old New Chg. (%)
Net Sales
1,210
1,385
14.5
1,595
1,673
4.9
EBITDA
186
203
9.1
255
235
(7.8)
EBITDA Margins (%)
15.4
14.7
16.0
14.0
PAT
95
116
22.1
147
136
(7.5)
PAT Margins (%)
7.9
8.4
9.2
8.2
Source: Angel Research
August 18, 2016
4
KNR Constructions | 1QFY2017 Result Update
Outlook & Valuation
Considering impressive 1QFY2017 results, potential for current order book to
contribute to strong revenues, we expect KNR to report 56.5% yoy increase in
FY2017 revenues to `1,385cr. Further, with recent order wins expected to start
meaningful contribution in next 12 months, we expect FY2018E revenues to clock
`1,673cr. On a whole, we expect KNR to report a strong 37.5% top-line CAGR
during FY2016-18E.
Currently we are seeing 1-2 projects running ahead of their schedule, which
comforts us that KNR could be eligible for early completion bonus (modeled in to
our estimates). Also, considering their project mix, nature of recent order wins
where low intensity was witnessed, we expect KNR to report FY2017/18E EBITDA
margins at 14.7/14.0%, respectively (vs. management guidance of 13.5-14.5%).
In FY2016, KNR’s PAT numbers benefitted from higher other income numbers, tax
reversal on MAT, interest income on income tax & VAT reversals, liabilities no
longer required written back. On adjusting for the same, FY2016 Adj. PAT stood at
`83cr (reflecting 9.4% adj. PAT margins). We expect KNR to continue to enjoy sec.
80IA benefits in FY2017-18E. Considering this management has guided for 8-10%
tax rate for FY2017E and 12% for FY2018E. We have been conservative in
modeling FY2017-18E effective tax rate at 22.0%. On a whole, we expect KNR’s
standalone entity to report 28.3% Adj. PAT CAGR during FY2016-18E.
KNR in our view enjoys (1) strong execution track record, (2) better cost structure
(reflected in the form of better EBITDA & PAT margins in comparison to some of its
peers), (3) shorter working capital cycle, (4) low leverage (since FY2011, D/E ratio
has been ~0.2x), and (5) impressive RoEs (12.1-24.9% range during FY2011-16).
All these factors indicate at KNR’s superior earnings quality, and strengthen our
view that KNR would continue to trade at premium valuations.
For valuation purposes, we have valued KNR using Sum-Of-The-Parts method.
KNR’s EPC business (standalone entity) is valued at FY2018E P/E multiple, whereas
only 1 of the 4 BOT projects has been valued using “Free Cash flow to Equity
holders” method and another one on BV basis. We have excluded 2 Annuity BOT
projects, where KNR has 40% stake in the JVs with Patel Engineering, as both these
projects are securitized.
Value of Core EPC business
Considering (1) current order backlog of `4,925cr, which gives revenue visibility
for 3+ years, (2) ramp-up in some of the recently won projects, which gives better
revenue visibility, (3) strong balance sheet (FY2016 D/E at 0.2x), (4) 28.3% adj.
earnings CAGR during FY2016-18E, and (5) RoE to remain ~15% in FY2017-
18E), we assign 15.0x P/E multiple to our FY2018E EPS estimate of `48.5/share
and arrive at standalone business value of `728/share.
August 18, 2016
5
KNR Constructions | 1QFY2017 Result Update
Exhibit 5: Sum-of-the-Parts based Valuation Table
FY18E Std. PAT
Target
Target Value
Value/ share
% of
Particulars
Segment
Basis
(` cr)
Multiple
(` cr)
(`)
SoTP
KNR's EPC business
Construction
136
15.0
2,047
728
91
P/E multiple
Total
136
2,047
728
91
Discounted
Project
Adj. FCFE
Value/ share
% of
Particulars
Proj. Type
Basis
FCFE/ BV (` cr)
Stake
Value (` cr)
(`)
SoTP
Road BOT projects
Walayar-Vadakkancheery BOT Proj.
Toll
136
100%
136
48
6
Ke of 14%
Muzaffarpur-Barauni BOT Project
Toll
141
51%
72
26
3
P/BV multiple
Total
277
208
74
9
Grand Total
2,255
802
100
Upside/ (Downside)
15%
CMP
699
Source: Company, Angel Research
Value of BOT projects
BOT projects have been valued using “Free Cash flow to Equity holders” and Book
value method. The Walayar-Vadakkancheery BOT Project is operational ahead by
1 month from its scheduled CoD of Sep-2015. We have valued this BOT project
using 14% discounting rate to arrive at a FCFE of `48/share (6% of SOTP value of
the company). Also, we add `72cr of equity (for its 51% stake in the SPV), which
KNR has infused in Muzaffarpur-Barauni BOT project. At 1x the BV, we arrive at
project value of `26/share. On a whole, BOT projects contribute `74/share to our
revised price target.
Business Value
On combining the value of EPC business and BOT projects, we arrive at a
combined business value of `802/share, reflecting 15% upside in the stock price
from here-on. We maintain our BUY rating on the stock.
August 18, 2016
6
KNR Constructions | 1QFY2017 Result Update
Investment arguments
Order Book grows 2.3x, gives better revenue visibility
KNR has been announcing large ticket project wins, mainly from Roads &
Highways EPC space in FY2016-YTDFY2017. To-date in FY2017, KNR reported
`1,771cr worth of project wins, thereby taking the order backlog to `4,925cr as of
now (vs `1,010cr in 4QFY2015-end), which gives better revenue visibility for
FY2017-18E.
Exhibit 6: Details of recently won EPC Road projects
Project
Announced
Stake
Project Details
Value
On
(%)
(` cr)
13-Apr-15 Upgrade 3 road stretches across Tamil Nadu
100%
729
2/4 laning of Madurai- Ramanathapuram section
17-Apr-15
100%
937
(115 kms, NH-49)
14-May-15
4-laning of Kazhakkottam-Mukkola (NH-47)
100%
669
Widen/ Reconstruct 3 road stretches across
8-Jul-15
100%
256
different locations within Madhya Pradesh
19-Feb-16 Construct various Flyovers at Salem
100%
295
7-Apr-16 Irrigation projects at Telangana
70%
687
25-May-16
4-laning of the Dindigul-Bangalore stretch
100%
415
8-Aug-16
4-laning of Hubli-Hospet stretch
50%
667
Total
4,655
Source: Company, Angel Research
KNR’s Management highlighted that it intends to focus bidding of Road EPC and
Hybrid Annuity projects (currently has bid for
1 Hybrid Annuity project).
Management maintained optimism that the company would report order wins of
~`1,000cr-1,500cr in remaining part of FY2017E. We expect KNR’s order inflow
growth momentum to continue going forward. For FY2017/FY2018E, we expect
KNR to report `5,578cr/ `7,905cr worth of project wins across verticals.
We expect KNR to report 2.3x growth in its Order book during FY2016-18E.
37.5% & 28.3% Revenue & Adj. PAT CAGR, during FY16-18E
KNR reported 2.9% top-line CAGR during FY2011-16 on account of weak order
inflow scenario. KNR reported strong order wins in FY2016, the benefits of which it
is likely to see going forward.
With uptick in award activity and continued recent wins, coupled with average
execution cycle of ~24-36 months, we expect KNR to report strong 37.5% revenue
CAGR during FY2016-18E to `1,673cr.
During FY2011-16, KNR reported EBITDA margins in the range of 14.4%-17.8%
and Adj. PAT margins in the range of 7.0%-9.4%. Assuming KNR would get 1 early
completion bonus for its ongoing projects in FY2017E and nothing in FY2018, we
model 156bp EBITDA margin decline from 15.6% in FY2016 to 14.0% in
FY2018E. On considering (1) higher interest expenses (owing to stretch in working
capital cycle), (2) assume 22.0% tax rate for FY2017-18E (as KNR would continue
to avail tax benefits u/s
80IA, we estimate 28.3% Adj. PAT CAGR during
FY2016-18E to `136cr. PAT margins would expand by 124bp to 8.2% by
FY2018E.
August 18, 2016
7
KNR Constructions | 1QFY2017 Result Update
Risks & Concerns
Any change in KNR’s taxation policy or adverse ruling by Tax department
could act as risk to our target price and rating.
KNR is highly dependent on the Roads vertical (accounts for ~72% of order
book). Delays in award activity and unfavorable changes in policy framework,
could affect our outlook on KNR.
Delays in execution (vs our estimates) could be a risk to our rating.
Company background
KNR is a Hyderabad based 20+ year old company having executed ~6,000+kms
of road projects across 12+ states in India. Over the years, KNR has executed
Roads & Highways, Irrigation, and Bridges & Flyover projects. KNR also has a
quarrying division, which ensures timely supply of stone aggregates at project
locations. KNR over the years has evolved from a smaller sized Roads & Highways-
Engineering Procurement and Construction (EPC) player to a large one by
executing projects timely and building its qualification criterion. As of now, KNR
has executed projects for a diversified range of clients namely, NHAI, KSHIP,
MPRDCL, UPSHA, EIL, Sadbhav Engineering and GMR, amongst others.
In addition to the EPC business, KNR has 4 Build Operate Transfer (BOT) projects
in its kitty, with 3 of them operational and the 4rd already being partly operational.
As of now, KNR had an order book of ~`4,925cr, which gives revenue visibility for
3+ years. The Roads & Highways vertical accounts for ~72% of the order book.
August 18, 2016
8
KNR Constructions | 1QFY2017 Result Update
Profit and Loss Statement (Standalone)
Y/E March (` cr)
FY14
FY15
FY16
FY17E
FY18E
Net Sales
837
876
885
1,385
1,673
% Chg
21.5
4.7
1.0
56.5
20.8
Total Expenditure
709
750
747
1,182
1,439
Raw Materials con.
291
337
279
534
651
Sub-Contracting Exp.
282
260
327
442
540
Employee Expense
35
38
44
50
59
Other Expenses
101
115
97
156
189
EBITDA
128
126
138
203
235
% Chg
13.3
(1.6)
9.5
47.5
15.4
EBIDTA %
15.3
14.4
15.6
14.7
14.0
Depreciation
57
54
43
51
58
EBIT
71
72
95
152
177
% Chg
23.5
1.7
31.7
60.6
16.1
Interest Exp.
17
12
13
20
19
Other Income
13
13
48
16
18
PBT
67
72
130
149
175
Tax
6
(1)
(31)
33
38
% of PBT
8.8
(1.0)
(23.8)
22.0
22.0
PAT before Exc. Item
61
73
161
116
136
Exceptional item
0
0
0
0
0
PAT
61
73
161
116
136
% Chg
17.0
19.7
120.7
(28.0)
17.7
PAT %
7.3
8.3
18.2
8.4
8.2
Basic EPS
21.7
26.0
57.3
41.2
48.5
Diluted EPS
21.7
26.0
57.3
41.2
48.5
% Chg
16.9
19.8
120.7
(28.0)
17.7
August 18, 2016
9
KNR Constructions | 1QFY2017 Result Update
Balance Sheet (Standalone)
Y/E March (` cr)
FY14
FY15
FY16
FY17E
FY18E
Sources of Funds
Equity Capital
28
28
28
28
28
Reserves Total
485
541
699
806
932
Networth
513
569
727
834
960
Total Debt
58
88
113
118
112
Other Long-term Liab.
100
69
181
102
112
Deferred Tax Liability
0
0
0
0
0
Total Liabilities
671
726
1,020
1,054
1,184
Application of Funds
Gross Block
525
543
605
695
757
Accumulated Dep.
262
316
359
410
468
Net Block
264
227
247
285
289
Capital WIP
0
0
0
0
0
Investments
40
32
43
59
60
Current Assets
Inventories
34
36
35
57
69
Sundry Debtors
117
177
129
285
339
Cash and Bank Balance
11
16
16
13
14
Loans & Advances
229
241
320
494
550
Current Liabilities
283
277
258
460
440
Net Current Assets
108
192
244
389
533
Other Assets
259
276
487
321
304
Total Assets
671
726
1,020
1,054
1,184
August 18, 2016
10
KNR Constructions | 1QFY2017 Result Update
Cash Flow Statement (Standalone)
Y/E March (` cr)
FY14
FY15
FY16
FY17E FY18E
Profit before tax
67
72
130
149
175
Dep. & Other Non-cash Charges
57
54
43
51
58
Change in Working Capital
16
(98)
65
(232)
(140)
Interest & Financial Charges
16
12
85
34
41
Direct taxes paid
(24)
(22)
(46)
(52)
(61)
Cash Flow from Operations
133
18
279
(50)
72
(Inc)/ Dec in Fixed Assets
(25)
(16)
(56)
(87)
(60)
(Inc)/ Dec in Investments
(55)
(9)
(223)
154
25
Cash Flow from Investing
(80)
(25)
(280)
67
(35)
Issue/ (Buy Back) of Equity
0
0
0
0
0
Inc./ (Dec.) in Loans
(32)
36
26
9
(6)
Dividend Paid (Incl. Tax)
(3)
(6)
(12)
(9)
(10)
Net Interest Expenses
(17)
(12)
(13)
(20)
(19)
Cash Flow from Financing
(52)
18
1
(20)
(36)
Inc./(Dec.) in Cash
1
12
0
(3)
1
Opening Cash balances
3
4
16
16
13
Closing Cash balances
4
16
16
13
14
August 18, 2016
11
KNR Constructions | 1QFY2017 Result Update
Key Ratios (Standalone)
Y/E March
FY14
FY15
FY16
FY17E
FY18E
Valuation Ratio (x)
P/E (on FDEPS)
32.2
26.9
12.2
17.0
14.4
P/CEPS
16.6
15.5
9.6
11.8
10.1
Dividend yield (%)
0.0
0.0
0.0
0.0
0.0
EV/Sales
2.4
2.3
2.3
1.5
1.2
EV/EBITDA
16.0
16.2
13.3
10.1
8.8
EV / Total Assets
3.0
3.0
2.8
2.0
2.0
Per Share Data (`)
EPS (fully diluted)
21.7
26.0
57.3
41.2
48.5
Cash EPS
42.0
45.2
72.6
59.4
69.1
DPS
1.0
1.7
3.7
2.7
3.2
Book Value
183
202
258
297
341
Returns (%)
RoCE (Pre-tax)
15.4
13.8
19.1
18.8
19.2
Angel RoIC (Pre-tax)
14.7
12.9
17.0
17.7
18.1
RoE
12.6
13.5
24.9
14.9
15.2
Turnover ratios (x)
Asset Turnover (Gross Block) (X)
1.6
1.6
1.6
2.1
2.3
Inventory / Sales (days)
15
15
14
15
15
Receivables (days)
51
74
52
75
74
Payables (days)
34
29
45
44
35
Leverage Ratios (x)
D/E ratio (x)
0.1
0.2
0.2
0.1
0.1
Interest Coverage Ratio (x)
4.9
6.9
11.3
8.6
10.1
August 18, 2016
12
KNR Constructions | 1QFY2017 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Disclosure of Interest Statement
KNR Constructions
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
4. Broking relationship with company covered under Research
No
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
August 18, 2016
13