Recent Price Movement and Market Context
On 3 December 2025, KNR Constructions' share price touched Rs.155.9, the lowest level in the past year. This movement comes after a two-day consecutive decline, during which the stock recorded a cumulative return of -3.25%. The day’s performance showed a drop of 1.61%, underperforming its sector by 1.29%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.
In contrast, the broader market index, Sensex, opened flat but later declined by 266.37 points, closing at 84,884.27, down 0.3%. Despite this, Sensex remains close to its 52-week high of 86,159.02, trading above its 50-day and 200-day moving averages, indicating a generally bullish market environment. This divergence highlights KNR Constructions’ relative underperformance within the current market cycle.
Long-Term Performance and Comparison
Over the last year, KNR Constructions has recorded a negative return of 52.30%, a stark contrast to the Sensex’s positive return of 5.01% during the same period. The stock’s 52-week high was Rs.357.15, underscoring the extent of the decline from its peak. This underperformance extends beyond the last year, with the company trailing the BSE500 index in each of the past three annual periods.
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Financial Results and Key Metrics
KNR Constructions’ recent quarterly results have shown a decline in key financial indicators. Net sales for the quarter stood at Rs.646.50 crore, reflecting a fall of 66.76% compared to previous periods. Profit before tax (PBT) excluding other income was Rs.124.74 crore, down by 77.03%. The operating profit to interest ratio reached a low of 3.65 times, indicating tighter margins in servicing interest obligations.
The company has reported negative results for three consecutive quarters, including the quarter ended March 2025. This sequence of results has contributed to the subdued market sentiment and the stock’s downward trajectory.
Operational and Valuation Considerations
Despite the recent financial setbacks, KNR Constructions maintains a relatively high return on capital employed (ROCE) of 18.75%, reflecting efficient utilisation of capital resources. The company’s debt servicing capacity remains strong, with a low debt to EBITDA ratio of 1.40 times. Additionally, the enterprise value to capital employed ratio stands at 1, suggesting a valuation that is attractive relative to its capital base.
Compared to its peers, KNR Constructions is trading at a discount to historical average valuations, which may reflect the market’s cautious stance given the recent earnings performance. Over the past year, profits have declined by 43.6%, further influencing the stock’s valuation metrics.
Shareholding and Institutional Interest
Institutional investors hold a significant stake in KNR Constructions, accounting for 29.03% of the shareholding. This level of institutional ownership indicates a degree of confidence in the company’s fundamentals from entities with extensive analytical resources.
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Summary of Market Position
KNR Constructions’ stock has experienced a marked decline over the past year, culminating in the recent 52-week low of Rs.155.9. The company’s financial results have shown contraction in sales and profits, with three consecutive quarters of negative outcomes. While the broader market has maintained a generally positive trend, KNR Constructions has lagged behind, trading below all major moving averages and underperforming its sector.
Nonetheless, the company’s capital efficiency and debt servicing metrics remain comparatively strong, and its valuation reflects a discount relative to peers. Institutional investors continue to hold a notable portion of shares, suggesting ongoing interest from market participants with a focus on fundamentals.
Looking Ahead
The current stock price level represents a significant point in KNR Constructions’ recent market journey. The company’s financial data and market indicators provide a comprehensive view of its present standing within the construction sector and the broader market environment.
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