Then there may be slowdown of orders?or any other reason.why knr is falling? regarding the news above
This looks like a negative news for the road construction players. But there are two imp things:
1/ This is just a suggestion from PMO. There are other articles which quotes NHAI officers saying infrastructure is imp. and NHAI needs to spend money on construction. Similar case where different government departments have contradictory views: Fin Ministry is opposing relief package to BSNL/MTNL but PMO has approved it
2/ Government is banking on infrastructure spending to reach 5 trillion GDP target. I don’t see them reducing NHAI funding.
Disclosure: Invested in KNR Construction. This is not a recommendation
Axiskumar ji, But How in 2017 proceeds from borrowings went down form 1208 to 271 if that has not been re-paid? would you pls throw light on this. Thanks
That is the actual borrowed amount in 2017 vs 2016. Essentially while 1208.89 Cr was borrowed in 2016-16, additionally 271.81 was borrowed in 2016-17. This is just the borrowed amount. What we need to check is if the total loan on the books was ever reduced. If you check screener, you will realize that it has never decreased.
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From which site did you get this screenshot
From where and which site did you get this screenshot
@fundoo, Do you track KNR ?
I hold a small lot. This Hyderabad based company has been different from the other crop. Consistently delivered. Conservative. Not taken too many risks. Dividend paying
What is your take on the company
Hi Shankar,
Yes i m tracking KNR and invested in the company. It is one of the best companies in the road infrastructure space in my opinion.
Big question to think about and answer for an investor in this space is: will NHAI keep allocating funds and placing new orders for construction? They have huge debt on B/S and equally high contingent liabilities.
But as per my understanding if govt wants to reach 5$T GDP then infrastructure spending will play a critical role in achieving the target. If spending keeps coming then KNR should do well given their track record.
So I am cautiously monitoring the situation and will take a call based on further developments.
Please note that I am not an expert here. These are my personal opinions and not a recommendation.
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Thanks a lot for your views.
Even I think that infrastructure is a piece that has a long way to go. Further, road construction is an area where the government has some better handle.
I have been positive, but watching closely for now
Great set of numbers (specially Consolidated) from KNR Constructions. Waiting for presentation for more color
Disclosure: Invested
Dilip Buildcon
Hi Mukul,
I have always been curious comparing Dilip Buildcon and KNR Construction. KNR is predominantly southern player. Dilip, on the other hand, has assets across India.
If you have any comparison / view on them, please share.
The moment you check the corporate governance issues in Dilip Buildcon. I don’t even think Dilip Buildcon comes near to Knr construction due to such issues. I personally would never go near cos which manipulate their accounts
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