Recent Price Movement and Market Context
On 18 Dec 2025, KNR Constructions' share price touched Rs.141.9, the lowest level recorded in the past year. This marks a continuation of a three-day losing streak, during which the stock has delivered a cumulative return of -4.63%. The trading range on the day was notably narrow, confined to Rs.1.3, indicating limited volatility despite the downward pressure.
The stock's performance today lagged behind the construction sector by 0.45%, while the broader Sensex index also faced pressure, closing down by 221.29 points or 0.31% at 84,297.04. The Sensex remains approximately 2.21% below its 52-week high of 86,159.02, signalling a cautious market environment.
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 technical positioning underscores the prevailing weakness in the stock's price momentum.
Long-Term Performance and Financial Trends
Over the last twelve months, KNR Constructions has recorded a total return of -58.26%, a stark contrast to the Sensex's positive return of 5.13% over the same period. The stock's 52-week high was Rs.356.7, highlighting the extent of the decline from its peak.
Financially, the company has exhibited subdued growth over the past five years, with net sales expanding at an annual rate of 4.18% and operating profit at 13.39%. However, recent quarterly results have shown a marked contraction. The net sales for the latest 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 reported at Rs.124.74 crore, down by 77.03%. The operating profit to interest coverage ratio has also declined to 3.65 times, indicating tighter margins for servicing debt obligations.
The company has reported negative results for three consecutive quarters, including the most recent quarter ending in September 2025 and the quarter ending March 2025. This sequence of results has contributed to the subdued investor sentiment and price pressure.
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Comparative Performance and Valuation Metrics
When compared to the BSE500 index, KNR Constructions has underperformed over the last three years, one year, and three months. This underperformance is consistent with the company's recent financial results and market valuation trends.
Despite the challenges, the company maintains a relatively high return on capital employed (ROCE) of 18.75%, reflecting efficient utilisation of capital in its operations. Additionally, the debt to EBITDA ratio stands at a low 1.40 times, indicating a manageable level of leverage and a strong capacity to service debt.
The enterprise value to capital employed ratio is 0.9, which is considered attractive and suggests that the stock is trading at a discount relative to its peers' historical valuations. However, profits have declined by 43.6% over the past year, aligning with the downward trend in the stock price.
Shareholding and Institutional Interest
KNR Constructions has a significant institutional holding of 29.03%. Institutional investors typically possess greater resources and analytical capabilities to assess company fundamentals, which may influence the stock's market behaviour and valuation.
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Summary of Key Factors Influencing the Stock
The stock's decline to Rs.141.9 reflects a combination of subdued sales growth, consecutive quarterly negative results, and a significant contraction in profits. The technical indicators, including trading below all major moving averages, reinforce the current downtrend.
While the company demonstrates strong capital efficiency and manageable debt levels, these factors have not translated into positive price momentum in the recent period. The stock's valuation metrics suggest it is trading at a discount relative to peers, but this has coincided with a notable decline in profitability.
Market conditions, including a broadly negative Sensex movement on the day, have also contributed to the stock's performance. The construction sector's dynamics and KNR Constructions' financial results have combined to shape the current market assessment.
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