This smallcap civil construction stock zooms nearly 11% to new 52-week high; here is why?

Shares of the smallcap entity KNR Constructions have zoomed to a fresh 52-week high in Thursday’s trade after the company released its March-quarter earnings on the previous day.

At the last count, shares of the civil construction firm traded higher by 9.82 per cent at Rs 307.5 apiece on the BSE, while in early trade it marked a new 52-week high of Rs 309.65. The stock’s all-time high price of Rs 343.55 was reached on September 1, 2021.

The company’s revenue from operations for the reporting quarter came in at Rs 1,414 crore as against Rs 1,245 crore in the same period last year. Net profit at the company also increased from Rs 147.27 crore in the corresponding period of the fiscal year to Rs 353.3 crore in the quarter ended March of FY24, logging a 140 per cent jump on-year.

EBITDA during the March-quarter declined 440bp on-year to 13.6% due to higher ‘other expenses’. Furthermore, EBITDA at the company declined 23 per cent to Rs 162 crore.

Based on orders announced post 3QFY24 and adjusted for 4QFY24 execution, the company's current order book stands at Rs 6,700 crore.

During the year ended March 31, 2023, the company has divested its balance 51 per cent stake In KNR Tirumala Infra Pvt Ltd and KNR Shankarampet Projects| Pvt Ltd and 100 per cent stake in KNR Srirangam Infra Pvt Ltd (SPV's) to CUBE Highways and Infrastructure IIT Pte Ltd.

KNR Constructions share price performance

Over the past year, shares of the company that is largely into infrastructure development  have surged 24 per cent. 

About KNR Constructions

The company’s segments include Expressways, National Highways, State Highways, Rural Roads, Flyovers, Bridges and Viaducts and Irrigation Projects