Recent Price Movement and Market Context
On 24 Nov 2025, KNR Constructions touched Rs.161.6, its lowest level in the past year. This price point contrasts sharply with its 52-week high of Rs.357.15, highlighting a substantial contraction in market valuation. Over the last five trading days, the stock has recorded a cumulative return of -5.18%, continuing a pattern of subdued performance. Notably, KNR Constructions is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a persistent bearish momentum.
In comparison, the broader market has shown resilience. The Sensex opened 88.12 points higher and was trading at 85,409.82, up 0.21% on the day. The benchmark index is approaching its 52-week high of 85,801.70, currently just 0.46% away. The Sensex has also recorded a 2.64% gain over the past three weeks, supported by strong performances from mega-cap stocks and trading above its 50-day and 200-day moving averages.
Financial Performance Highlights
KNR Constructions’ financial data over recent quarters reveals challenges impacting its stock price. The company’s net sales for the quarter stood at Rs.646.50 crore, reflecting a decline of 66.76% compared to previous periods. This downturn in sales has coincided with a fall in profit before tax (PBT) less other income to Rs.124.74 crore, down 77.03%. Operating profit to interest ratio has also contracted to 3.65 times, indicating tighter margins in servicing financial obligations.
The company has reported negative results for three consecutive quarters, including the quarter ended March 2025. This sequence of results has contributed to subdued investor sentiment and pressure on the stock price.
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Long-Term Growth and Valuation Metrics
Over the past five years, KNR Constructions’ net sales have shown a compound annual growth rate of 4.18%, while operating profit has grown at 13.39% annually. Despite these figures, the recent quarterly results indicate a sharp reversal in growth trajectory. The stock’s one-year return stands at -47.25%, significantly underperforming the Sensex, which has recorded a 7.99% gain over the same period.
Valuation metrics suggest the stock is trading at a discount relative to its peers. The company’s return on capital employed (ROCE) is reported at 18.75%, reflecting efficient capital utilisation. Additionally, the debt to EBITDA ratio is 1.40 times, indicating a manageable debt burden and capacity to service liabilities. The enterprise value to capital employed ratio is 1, which is considered attractive within the construction sector.
Shareholding and Market Position
Institutional investors hold 29.03% of KNR Constructions’ equity, a level that suggests significant participation by entities with extensive analytical resources. Despite this, the stock’s performance has lagged behind the BSE500 index over the last three years, one year, and three months, underscoring persistent challenges in regaining market confidence.
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Sectoral and Market Comparison
The construction sector, in which KNR Constructions operates, has faced headwinds that have affected several companies. However, KNR Constructions’ stock performance has been notably weaker than the sector average. On the day the stock hit its 52-week low, its price movement was in line with the sector’s overall trend, which has shown some resilience despite broader market volatility.
While the Sensex and mega-cap stocks have demonstrated strength, KNR Constructions remains under pressure, reflecting company-specific factors that have weighed on investor sentiment.
Summary of Key Metrics
To summarise, KNR Constructions’ stock has declined to Rs.161.6, its lowest level in the past year, following a series of quarterly results showing contraction in sales and profits. The stock’s valuation metrics indicate a discount relative to peers, supported by a strong ROCE and manageable debt levels. Institutional ownership remains significant, though the stock has underperformed major indices and sector benchmarks over multiple time frames.
These factors collectively illustrate the current state of KNR Constructions’ market position and financial health as reflected in its stock price.
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