KNR Constructions Ltd.
ISIN: INE634I01029 • Market Cap: ₹3,579 Cr
The 5-Pillar Quality Audit for KNR Constructions Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (23.4%), Return on Capital Employed (26.1%), and equity compounding (22.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.41 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-13.0%) and 3Y PAT CAGR (-6.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 9.07 vs PEG of — and Dividend Yield of 0.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 48.8%, backed by 22.7% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 26.1%)
KNR Constructions Ltd. generates exceptional return on capital employed of 26.1%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 22.1%)
Shareholder equity compounds at a healthy 22.1%, exceeding average Indian equity benchmarks.
Attractive Valuation Margin (P/E: 9.07)
Trading at a P/E multiple of 9.07, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: -13.0%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Construction)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction space.
Quantitative Strategy Eligibility
Checking KNRCON against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 69/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Construction Sector Peer Comparison
Compare KNRCON directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| KNR Constructions Ltd. (KNRCON)Current | 69/100 | ₹3,579 Cr | 9.07 | 26.1% | 0.41 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: KNR Constructions Ltd.
Q:What is the 5-Pillar Fundamental Score for KNR Constructions Ltd. (KNRCON)?
KNR Constructions Ltd. has a RupeeTools Fundamental Score of 69/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (87/100), Financial Health (78/100), Growth (18/100), Valuation (90/100), and Ownership Quality (70/100).
Q:Is KNRCON fundamentally strong for long-term investment?
KNRCON currently holds a moderate quality rating of 69/100. While it operates in the Construction sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does KNRCON pass the Coffee Can Investing filter?
No. KNRCON does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does KNRCON compare against other Construction peers?
Within India's Construction sector, KNRCON trades at a P/E of 9.07 and generates an ROCE of 26.1%. Compare its 5-Pillar score of 69/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.