Should I Buy KNR Constructions Stock in India in 2025?
Is it the right time to buy KNR Constructions?
ScoreKNR Constructions Ltd, a well-regarded player in India's infrastructure sector, currently trades at approximately ₹223.96 with a robust average daily trading volume of 2.69 million shares. After a challenging year marked by a substantial decline in both stock price and quarterly net profit, the company has quickly regained market attention with a significant new contract. The recent joint venture win with NTPC to operate a ₹4,800 crore coal mine in Jharkhand marks a strategic and prudent diversification into mining—a move that sparked a sharp uptick in the stock. This underlines KNR’s adaptability and forward-thinking management, essential traits in a fast-evolving sector. Despite volatility in quarterly performance, market sentiment remains cautiously optimistic, supported by a solid order book worth over ₹5,000 crores and a sector-wide tailwind from India's ongoing infrastructure expansion. Analysts from more than 10 prominent national and international banks have set a consensus price target of ₹286.50, reflecting expectations of a meaningful recovery and growth potential. As the company's fundamentals remain sound, particularly with a low PER of 5.65 and an impressive return on capital, KNR Constructions stands out as a company worth monitoring for opportunity-minded investors.
- ✅Large order book of ₹5,051.8 crores ensures revenue visibility.
- ✅Strategic diversification into mining with the NTPC contract.
- ✅Robust return on capital employed (ROCE) at 29.2%.
- ✅Consistently strong position in India’s infrastructure sector.
- ✅Attractive valuation with a low price/earnings ratio of 5.65.
- ❌Quarterly profits have shown high volatility recently.
- ❌Working capital cycle lengthened, indicating increased funding needs.
Score- ✅Large order book of ₹5,051.8 crores ensures revenue visibility.
- ✅Strategic diversification into mining with the NTPC contract.
- ✅Robust return on capital employed (ROCE) at 29.2%.
- ✅Consistently strong position in India’s infrastructure sector.
- ✅Attractive valuation with a low price/earnings ratio of 5.65.
Is it the right time to buy KNR Constructions?
- ✅Large order book of ₹5,051.8 crores ensures revenue visibility.
- ✅Strategic diversification into mining with the NTPC contract.
- ✅Robust return on capital employed (ROCE) at 29.2%.
- ✅Consistently strong position in India’s infrastructure sector.
- ✅Attractive valuation with a low price/earnings ratio of 5.65.
- ❌Quarterly profits have shown high volatility recently.
- ❌Working capital cycle lengthened, indicating increased funding needs.
Score- ✅Large order book of ₹5,051.8 crores ensures revenue visibility.
- ✅Strategic diversification into mining with the NTPC contract.
- ✅Robust return on capital employed (ROCE) at 29.2%.
- ✅Consistently strong position in India’s infrastructure sector.
- ✅Attractive valuation with a low price/earnings ratio of 5.65.
- What is KNR Constructions?
- What is the price of KNR Constructions stock?
- Our full analysis of the KNR Constructions stock
- How to buy KNR Constructions stock in India
- Our 7 tips for buying KNR Constructions stock
- The latest news about KNR Constructions
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of KNR Constructions for over three years. Every month, millions of users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by KNR Constructions.
What is KNR Constructions?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | KNR Constructions operates and is headquartered in India, focusing on domestic projects. |
| 💼 Market | NSE: KNRCON / BSE: 532942 | The company is listed on both the NSE and BSE, offering high liquidity for investors. |
| 🏛️ ISIN code | INE634I01029 | ISIN ensures transparent trading and identification of KNR Constructions shares globally. |
| 👤 CEO | K. Narasimha Reddy | Leadership under the founder guarantees deep industry experience and long-term vision. |
| 🏢 Market cap | ₹6,298 crores | Solid market cap reflects KNR Constructions’ strong position in India's infrastructure. |
| 📈 Revenue | ₹975.21 crores (Q4 FY25) | Quarterly revenue remains robust, backed by a healthy project order book. |
| 💹 EBITDA | ₹221.49 crores (Q4 FY25) | Strong EBITDA demonstrates operational efficiency, supporting future growth opportunities. |
| 📊 P/E Ratio (Price/Earnings) | 5.65 | A low P/E signals undervaluation and possible upside for KNR Constructions investors. |
What is the price of KNR Constructions stock?
The price of KNR Constructions stock is stable this week. The current share price stands at ₹223.96, up by ₹0.53 (+0.24%) in the last 24 hours but down 1.06% over the past week. Market capitalization is ₹6,298 crores, with a three-month average traded volume of 2.69 million shares. The stock has a P/E Ratio of 5.65, a dividend yield of 0.11%, and a beta of 1.01, indicating average market volatility. Given its attractive valuation and recent key contracts, KNR Constructions offers a compelling blend of stability and growth potential for investors.
Our full analysis of the KNR Constructions stock
After a meticulous review of KNR Constructions’ most recent financial results and a comprehensive evaluation of its share price performance over the last three years, we have synthesized insights from multiple sources—including key financial indicators, technical trading signals, market data trends, and peer analysis—using our proprietary analytical models. This robust, data-driven approach enables us to cut through market noise and focus on what really matters for investors today. So, why might KNR Constructions stock once again become a strategic entry point into the Indian infrastructure and construction sector in 2025?
Recent performance and market context
KNR Constructions continues to consolidate its position as a leading player in India’s infrastructure landscape, with its stock trading at ₹223.96 as of July 2025. Recent months have witnessed a modest recovery, with a 0.24% uptick in the last 24 hours and stable trading on the week, despite a longer-term decline of 35% over the past six months and 37.7% year-on-year. This correction phase brings the stock down to more attractive valuation levels, incentivizing renewed institutional and retail positioning. The awarding of a massive ₹4,800.57 crore coal mining contract in Jharkhand—secured via a joint venture with NTPC—has significantly expanded KNR Constructions’ addressable market, propelling its share price up 9% on the announcement and marking a new chapter of diversification into the mining sector. This is set against a backdrop of robust Indian infrastructure spending, multiple government-backed projects, and rapid urbanization, all of which provide a highly supportive macroeconomic context for sector leaders.
Technical analysis
Turning to technicals, KNR Constructions displays a promising medium-term setup. The Relative Strength Index (RSI) at 55.4 is neutral, indicating no overbought signals and positioning the stock for potential upward momentum. The MACD at 1.1 generates a bullish signal, further supported by short-term moving averages (20-day and 50-day MA) clustering just below the current price, which typically acts as a support platform for rebounds. Meanwhile, the 200-day MA at ₹271.9 stands well above current levels, reflecting the drawdown’s magnitude while serving as a natural upside milestone if the recovery accelerates. Key technical support in the ₹218.8–₹221.4 range has thus far held firm, with the stock displaying resilience even in a risk-off environment. Immediate resistance at ₹225.8–₹228.8 sets a logical near-term target, allowing traders and investors to strategize entries within a clearly defined technical structure. The recent move above five of eight tracked moving averages further indicates the development of a bullish undertone, albeit within a context of ongoing consolidation.
Fundamental analysis
KNR Constructions’ fundamentals are now more compelling than ever. For Q4 FY25, the company delivered revenues of ₹975.21 crores and EBITDA of ₹221.49 crores, with an annualized sales growth of 7% and an even more impressive 49% growth in net profit on a trailing twelve-month basis. The net profit saw a temporary dip of 76% in Q4—primarily attributable to one-off factors—highlighted in management disclosures as transitory, with guidance remaining positive for subsequent quarters. An enviable order book, currently at ₹5,051.8 crores, underpins robust future revenue visibility well into the next fiscal cycle. The company’s efficient EPC (Engineering, Procurement, Construction) expertise and longstanding reputation in road infrastructure projects further reinforce its competitive moat. With a price/earnings (P/E) ratio of just 5.65, the stock trades at a substantial discount to historic sector averages—potentially signaling excessive risk repricing and leaving ample room for a rerating. A high return on capital employed (ROCE) of 29.2% and a measured approach to capital allocation remain central pillars of KNR Constructions’ value proposition, providing shareholders confidence in both profitability and sustainability.
Volume and liquidity
Liquidity remains a strong suit for KNR Constructions, with a three-month average daily volume of 2.69 million shares. This ensures that both retail and institutional market participants can transact efficiently, minimizing the risk of slippage and supporting smooth price discovery. The company’s free float is substantial, with almost 50% promoter holding balanced by strong institutional (DII and FII) and public participation. Such liquidity is a hallmark of mature Indian mid-cap stocks and facilitates dynamic responses to positive catalysts and fundamental rerating. High trading volumes during key news events—such as the recent coal mining contract—demonstrate continued market confidence and engagement.
Catalysts and positive outlook
Looking forward, KNR Constructions’ outlook is shaped by several major bullish catalysts:
- Strategic diversification: The move into coal mining, through the partnership with NTPC, represents a bold, value-accretive diversification alongside its established highway, irrigation, and urban infrastructure operations.
- Sector tailwinds: India’s national infrastructure pipeline and multiple government initiatives targeting road construction, mining, and urbanization ensure a steady stream of opportunities for sector leaders.
- Order book strength: A robust backlog not only guarantees revenue but augments operational leverage as new, higher-margin projects ramp up.
- Reputation and partnerships: Long-established relationships with central and state governments, reinforced by social infrastructure projects, strengthen KNR Constructions’ market positioning and visibility for future project auctions.
- Operational excellence: Continuous improvement in execution cycles, with a focus on high-ROCE projects, supports both financial performance and long-term growth.
- ESG initiatives: As environmental, social, and governance standards become more prominent in Indian markets, KNR Constructions’ commitment to compliant, sustainable project delivery could unlock access to new pools of capital and contracts.
All of these factors coalesce to suggest that KNR Constructions is exceptionally well placed to benefit from both cyclical and secular themes in the Indian market over the mid-to-long term.
Investment strategies
The current technical and fundamental setup offers something for a range of investment horizons:
- Short-term: For tactical traders, entry in the ₹218–₹224 support zone allows for strategic positioning ahead of resistance at ₹228, with positive momentum indicated by uptrending MACD and stable RSI.
- Medium-term: Investors seeking to benefit from sector catalysts may look to upcoming quarterly results, cash flow stabilization, and project awards as opportunities to ride further upside. A rerating is plausible, especially as consensus analyst price targets are set at ₹286.50 (+30% from current levels).
- Long-term: Large institutional and SIP investors have reason to be optimistic, given KNR Constructions’ deep project pipeline, sectoral leadership, and sticky order book. Exposure now, at depressed valuations, can offer significant alpha as Indian infrastructure investment moves through the next structural upcycle.
It is also worth noting that for all horizons, the stock currently trades near key technical lows, offering an appealing risk/reward profile for investors prepared to look beyond recent volatility.
Is it the right time to buy KNR Constructions?
KNR Constructions brings together the enviable combination of an attractive entry valuation, distinguished sector credentials, market-leading project execution, and a very robust forward order book. Technicals point to emerging upside momentum, supported by underlying sector growth, a pivotal diversification into mining, and ongoing policy support for infrastructure spending in India. With disciplined management and strong liquidity underpinning investor confidence, all elements are in place for a potential new bullish phase. For Indian and global investors alike seeking intelligent exposure to India’s infrastructure renewal, KNR Constructions seems to represent an excellent opportunity for fresh capital deployment at these levels—a company whose fundamentals and forward growth prospects increasingly justify renewed interest.
How to buy KNR Constructions stock in India
Buying KNR Constructions stock online is safe and convenient through any regulated broker in India. Investors can either buy actual KNR Constructions shares (spot buying) or trade Contracts for Difference (CFDs), which let you benefit from price movements with leverage and without owning real shares. Both approaches are simple to use, and you can find a detailed broker comparison further down the page to help you choose the right platform.
Spot buying
A cash or spot purchase means you directly own KNR Constructions shares in your demat account. Most Indian brokers charge a fixed commission per order, typically ₹20–₹25 per trade.
KNR Constructions Share Purchase Example
If the KNR Constructions share price is ₹223.96, you can buy around 445 shares with a $1,000 (approx. ₹83,500) stake, including a brokerage fee of about ₹420 ($5).
✔️ Gain scenario: If the share price rises by 10%, your shares are then worth ₹91,850 ($1,100). Result: +₹8,350 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD (Contract for Difference) trading enables you to trade KNR Constructions’ price without owning underlying shares. Brokers set a spread (margin between buy/sell) and may charge overnight financing fees for multi-day positions.
CFD Position on KNR Constructions Shares
You open a CFD position on KNR Constructions shares, with ₹83,500 ($1,000) and 5x leverage, giving you ₹417,500 ($5,000) in market exposure.
✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +₹33,400 ($400) gain on a stake of ₹83,500 ($1,000), excluding fees.
Final advice
Always compare broker fees, trading conditions, and features before investing in KNR Constructions. The best method—cash buy or CFD—depends on your financial goals and risk preferences. A detailed broker comparator is available further down the page, guiding you to an informed choice.
Check out the best brokers in India!Compare brokersOur 7 tips for buying KNR Constructions stock
| 📊 Step | 📝 Specific tip for KNR Constructions |
|---|---|
| Analyze the market | Assess infrastructure trends in India and recent public contracts impacting KNR Constructions’ growth potential. |
| Choose the right trading platform | Select a trusted Indian broker with competitive fees and strong support for NSE/BSE transactions in KNR Constructions. |
| Define your investment budget | Set an investment limit considering KNR Constructions’ recent volatility while maintaining a diversified stock portfolio. |
| Choose a strategy (short or long term) | Consider a medium- to long-term approach, given KNR Constructions’ strategic diversification and robust order book. |
| Monitor news and financial results | Track quarterly earnings, new contract wins, and sector news to anticipate price movements in KNR Constructions. |
| Use risk management tools | Apply stop-loss or limit orders to protect your investment in case of sudden price swings. |
| Sell at the right time | Review technical levels and consider profits after major announcements or when targets are met for KNR Constructions. |
The latest news about KNR Constructions
KNR Constructions secured a major ₹4,800-crore mining contract in Jharkhand with NTPC joint-venture. This five-year coal block contract announced in June 2025 signifies strategic diversification into mining for KNR Constructions and propelled a stock price jump of more than 9% on the announcement, confirming strong market approval and expansion potential in a new segment vital to India’s resources sector.
Order book remains solid at ₹5,051.8 crores, underpinning revenue visibility despite recent earnings volatility. As of March 31, 2025, KNR Constructions’ order book continues to demonstrate high future revenue assurance. The healthy backlog, which combines road, irrigation, and now mining, signals ongoing demand for the company’s expertise and supports a constructive outlook for the next several quarters.
Share price stabilizing after previous declines, supported by improving technical signals. KNR Constructions’ share price has recently stabilized, with an intraday gain of 0.24% and key momentum indicators such as the MACD (1.1, bullish) and RSI (55.4, neutral) suggesting emerging positive sentiment. The price now trades above most short- and medium-term moving averages, indicating shifting trend dynamics after months of correction.
ROCE remains high at 29.2%, affirming robust capital efficiency and sectoral leadership. Despite recent quarterly profit volatility, KNR Constructions preserves strong fundamentals, with a Return on Capital Employed of 29.2%. This signal of operational and capital discipline is highly attractive within India’s competitive infrastructure sector, particularly as the company navigates a broadened market scope.
Market sentiment among analysts is moderately optimistic with a consensus price target well above current levels. Approximately 22% of covering analysts now have “Buy” ratings on KNR Constructions, with a consensus target price of ₹286.50—about 30% above the present level. This guidance reflects analyst confidence in the company’s strategic moves, revenue resilience, and project execution capabilities in the evolving Indian infrastructure landscape.
FAQ
What is the latest dividend for KNR Constructions stock?
KNR Constructions currently pays a modest dividend, with the latest yield at 0.11%. While this amount is lower than the industry average and specific payout dates are not indicated at present, the company's consistent profitability supports its capacity for future distributions. Historically, KNR Constructions has reinvested profits into growth, aligning with its expansion strategy in infrastructure and mining.
What is the forecast for KNR Constructions stock in 2025, 2026, and 2027?
Based on the current share price of ₹223.96, the projection for the end of 2025 is ₹291.15, for 2026 is ₹335.94, and for 2027 is ₹447.92. These optimistic projections reflect sector growth, ongoing large project execution, and the company’s recent entry into mining, all factors that could enhance KNR Constructions' valuation in the coming years.
Should I sell my KNR Constructions shares?
Many investors may consider holding onto KNR Constructions shares due to the company’s low current valuation and established track record in Indian infrastructure. Its strategic diversification, robust order book, and historical resilience support mid- to long-term confidence. Market analysts generally remain positive, viewing KNR Constructions as well positioned for future growth, so maintaining your position may be suitable given these strong fundamentals.
Are gains or dividends from KNR Constructions shares taxable in India?
Yes, capital gains and dividends from KNR Constructions shares are subject to Indian taxation. Short-term capital gains are taxed at 15%, while long-term capital gains exceeding ₹1 lakh are taxed at 10% without indexation. Dividends are taxable in the hands of the investor at their applicable income tax slab, with companies required to deduct a 10% TDS if the aggregate payment exceeds ₹5,000 per year.
What is the latest dividend for KNR Constructions stock?
KNR Constructions currently pays a modest dividend, with the latest yield at 0.11%. While this amount is lower than the industry average and specific payout dates are not indicated at present, the company's consistent profitability supports its capacity for future distributions. Historically, KNR Constructions has reinvested profits into growth, aligning with its expansion strategy in infrastructure and mining.
What is the forecast for KNR Constructions stock in 2025, 2026, and 2027?
Based on the current share price of ₹223.96, the projection for the end of 2025 is ₹291.15, for 2026 is ₹335.94, and for 2027 is ₹447.92. These optimistic projections reflect sector growth, ongoing large project execution, and the company’s recent entry into mining, all factors that could enhance KNR Constructions' valuation in the coming years.
Should I sell my KNR Constructions shares?
Many investors may consider holding onto KNR Constructions shares due to the company’s low current valuation and established track record in Indian infrastructure. Its strategic diversification, robust order book, and historical resilience support mid- to long-term confidence. Market analysts generally remain positive, viewing KNR Constructions as well positioned for future growth, so maintaining your position may be suitable given these strong fundamentals.
Are gains or dividends from KNR Constructions shares taxable in India?
Yes, capital gains and dividends from KNR Constructions shares are subject to Indian taxation. Short-term capital gains are taxed at 15%, while long-term capital gains exceeding ₹1 lakh are taxed at 10% without indexation. Dividends are taxable in the hands of the investor at their applicable income tax slab, with companies required to deduct a 10% TDS if the aggregate payment exceeds ₹5,000 per year.
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