Recent Price Movement and Market Context
On 21 Nov 2025, KNR Constructions recorded its lowest price in the past year at Rs.165.1. This level represents a notable drop from its 52-week high of Rs.357.15, indicating a decline of over 53%. The stock has been on a losing streak for four consecutive trading days, with a cumulative return of -4.37% during this period. Today’s performance saw the stock underperform its sector by -0.96%, continuing the trend of subdued investor sentiment.
In comparison, the Sensex opened lower at 85,347.40, down by 285.28 points (-0.33%), and was trading at 85,417.73 (-0.25%) during the same session. The benchmark index remains close to its 52-week high of 85,801.70, just 0.45% away, and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish market environment contrasting with KNR Constructions’ performance.
Technical Indicators Reflect Bearish Momentum
KNR Constructions is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This widespread positioning below moving averages typically indicates sustained selling pressure and a lack of short- to long-term upward momentum. The stock’s technical profile suggests that it has been unable to find support at higher price levels, contributing to the recent lows.
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Financial Performance Over the Past Year
The stock’s price decline aligns with the company’s financial results over the recent quarters. KNR Constructions reported a net sales figure of Rs.646.50 crore in the latest quarter, reflecting a fall of -66.76% compared to previous periods. This sharp contraction in sales has been accompanied by a reduction in profit before tax (PBT) less other income, which stood at Rs.124.74 crore, down by -77.03%.
Operating profit to interest ratio for the quarter was recorded at 3.65 times, the lowest in recent periods, indicating tighter margins and reduced buffer for interest expenses. The company has declared negative results for three consecutive quarters, including the most recent quarter ending in September 2025, and also reported negative results in March 2025 after two prior quarters of subdued performance.
Long-Term Growth and Comparative Returns
Over the last five years, KNR Constructions’ net sales have grown at an annual rate of 4.18%, while operating profit has shown a growth rate of 13.39%. Despite these figures, the stock’s one-year return stands at -46.09%, significantly underperforming the Sensex, which has delivered a positive return of 10.72% over the same period. The stock has also lagged behind the BSE500 index across one-year, three-year, and three-month timeframes.
This underperformance reflects challenges in both near-term results and longer-term growth trajectories, contributing to the stock’s current valuation pressures.
Balance Sheet and Efficiency Metrics
Despite recent financial setbacks, KNR Constructions exhibits certain strengths in its operational efficiency and balance sheet management. The company’s return on capital employed (ROCE) is reported at 18.75%, indicating effective utilisation of capital resources. Additionally, the debt to EBITDA ratio stands at a relatively low 1.40 times, suggesting a manageable debt burden and capacity to service obligations.
The enterprise value to capital employed ratio is 1, which is considered attractive relative to peers, and the stock is trading at a discount compared to average historical valuations within its sector. These factors highlight areas of relative stability amid the broader challenges faced by the company.
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 often reflects a thorough analysis of company fundamentals by entities with substantial resources and expertise.
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Summary of Current Position
KNR Constructions’ stock has experienced a notable decline to Rs.165.1, its lowest level in the past 52 weeks, reflecting a combination of subdued sales, reduced profitability, and sustained negative quarterly results. The stock’s technical indicators remain bearish, trading below all major moving averages, while its financial metrics reveal contraction in key revenue and profit figures.
While the company maintains strong management efficiency and a conservative debt profile, these factors have not yet translated into positive market performance. The stock’s valuation remains discounted relative to peers, and institutional investors continue to hold a sizeable portion of shares.
Overall, KNR Constructions is navigating a challenging phase marked by significant price depreciation and financial headwinds within the construction sector.
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