Recent Price Movement and Market Context
On 28 Nov 2025, KNR Constructions' share price touched Rs.160.7, the lowest level recorded in the past 52 weeks. This follows a two-day consecutive decline, with the stock registering a cumulative return of -1.5% during this period. The day's performance saw the stock underperform its sector by 0.25%, reflecting continued pressure on the construction company’s shares.
The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a sustained bearish trend. This contrasts with the broader market, where the Sensex opened flat but moved into positive territory, trading at 85,796.04 points, a 0.09% gain and just 0.3% shy of its 52-week high of 86,055.86. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a generally bullish market environment, led by mega-cap stocks.
Long-Term Performance and Comparison
Over the last year, KNR Constructions has recorded a return of -50.35%, significantly lagging behind the Sensex, which posted an 8.57% gain in the same period. The stock’s 52-week high was Rs.357.15, highlighting 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 Sales Trends
KNR Constructions’ recent quarterly results have reflected a challenging period. The company reported net sales of Rs.646.50 crore, representing a decline of 66.76% compared to previous quarters. This sharp contraction in sales contributed to a negative performance for the third consecutive quarter, with the company also posting negative results in March 2025 after two prior quarters of similar outcomes.
Profit before tax (PBT) excluding other income stood at Rs.124.74 crore, down by 77.03% in the latest quarter. Operating profit to interest ratio reached a low of 3.65 times, indicating tighter margins and reduced earnings capacity relative to interest obligations.
Operational and Valuation Metrics
Despite the recent financial setbacks, KNR Constructions maintains a relatively high return on capital employed (ROCE) of 18.75%, signalling efficient use of capital in generating earnings. The company’s debt servicing capability remains strong, with a debt to EBITDA ratio of 1.40 times, suggesting manageable leverage levels.
Valuation metrics show an enterprise value to capital employed ratio of 1, which is considered attractive compared to historical averages of peers in the construction sector. The stock is trading at a discount relative to its sector counterparts’ historical valuations, reflecting the market’s cautious stance.
Institutional Holdings and Market Position
Institutional investors hold a significant stake in KNR Constructions, accounting for 29.03% of the shareholding. This level of institutional ownership indicates that entities with substantial analytical resources continue to maintain exposure to the company despite recent performance trends.
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Sector and Industry Context
KNR Constructions operates within the construction industry, a sector that has experienced varied performance across companies. While the broader market and Sensex have shown resilience and growth, KNR Constructions’ stock has not mirrored this trend. The company’s net sales have grown at an annual rate of 4.18% over the past five years, with operating profit growth at 13.39% annually during the same period. However, recent quarterly results have deviated from this longer-term pattern, with significant declines in sales and profitability.
The stock’s performance relative to the sector and benchmark indices highlights the challenges faced by KNR Constructions in maintaining growth momentum and market valuation.
Summary of Key Metrics
To summarise, KNR Constructions’ stock price has declined to Rs.160.7, marking a 52-week low. The stock has underperformed the Sensex and its sector peers over the past year, with a return of -50.35% compared to the Sensex’s 8.57%. Quarterly financials reveal a steep fall in net sales and profit before tax, with three consecutive quarters of negative results. Despite these trends, the company maintains a strong ROCE of 18.75% and a manageable debt profile, with institutional investors holding nearly 30% of shares.
The stock’s current valuation metrics indicate a discount relative to peers, reflecting the market’s cautious stance amid recent financial performance. KNR Constructions remains below all major moving averages, underscoring the prevailing downward trend in its share price.
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