Infra stock to buy now for an upside of up to 60%; Do you own it?

Synopsis: KNR Constructions Ltd. is in the spotlight after Anand Rathi, a leading Indian brokerage firm, gave a target price of ₹ 231, suggesting a potential upside of up to 55% from the previous close.

The shares of the Infrastructure company specializing specializes in multi-domain infrastructure development in India, primarily focusing on Engineering, Procurement, and Construction (EPC) services for roads, highways, expressways, bridges, flyovers, and irrigation projects, are in focus after a leading Indian brokerage firm, Anand Rathi, initiated a revised  Buy target on it with a 55 percent Upside Potential.

With a market capitalisation of Rs. 4,104.62 crores on Monday, the shares of KNR Constructions Ltd declined upto 3.4 percent, making a low of Rs. 143.90 per share compared to its previous closing price of Rs. 149.05 per share.

KNR Constructions Ltd, engaged in multi-domain infrastructure development in India, primarily focusing on Engineering, Procurement, and Construction (EPC) services for roads, highways, expressways, bridges, flyovers, and irrigation projects, is in focus after a leading indian brokerage firm, Anand Rathi, initiated revised a Target of Rs. 231 on it with an upto 59 percent Upside Potential from previous close.

The reasons for the “Buy” target

• Strong Revenue Growth: KNR shows a solid compound annual growth rate (CAGR) of 6.4% in revenue from FY25 to FY28, indicating consistent business expansion
• Healthy Revenue Figures: The revenue steadily increases from 21.7 percent in FY26, 34.2 percent in FY27 and 40.5 percent in FY28, showing steady operational growth over the years with a CAGR of FY25-28.
• Robust PAT Growth: The Profit After Tax (PAT) exhibits a good growth trajectory, moving from 7.4 percent in FY25 to 3.3 percent in FY28, despite a negative CAGR of -23.6%; the absolute figures still reflect profitability.
• Positive Market Position: The current market price (CMP) of 149 compared to the target price (TP) of 231 shows potential upside, indicating market confidence in the stock.
• Reasonable Valuation: The Price-to-Earnings (P/E) ratio is fairly balanced with a slight decline from 26.6 in FY26 to 14.1 in FY28, suggesting the stock is becoming more attractively valued over time.

Financials & Others

The company’s revenue declined by 67 percent from Rs. 1,945 crore to Rs. 646 crore in Q2FY25-26. Meanwhile, the Net profit declined from  Rs. 580 crore to  Rs. 105 crore during the same period.

KNR Constructions Ltd. (KNRCL) is a leading Indian infrastructure company, established in 1995, specializing in Engineering, Procurement, and Construction (EPC) for roads, highways (including bridges/flyovers), irrigation, and urban water management, known for timely project completion and expanding across India via independent work and joint ventures, under the leadership of MD K. Narasimha Reddy. With over 25 years of experience, the company has successfully completed more than 9,127 lane kilometres of road projects across 12 states in India.

Their portfolio includes Build-Operate-Transfer (BOT) and Hybrid Annuity Model (HAM) projects, with 452 lane kilometres in Telangana and Karnataka, consisting of 2 annuity-based projects and 8 HAM projects. The total bid cost for these HAM projects is Rs. 9,618.8 crores.

The company has a strong order book valued at Rs. 8,215.9 crores (as of September 30, 2025), spread across the Roads sector (Rs. 2,070 crores), Irrigation and Pipeline sector (Rs. 2,593.5 crores), and Mining sector (Rs. 3,552.4 crores).

Written By Sridhar J

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