Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Motilal Oswal
KNR Constructions (Buy)
Target: ₹310
CMP: ₹258
KNR Constructions has completed the sale of the Walayar road project to Cube Highways at an enterprise value of ₹510 crore. Debt on the project stands at ₹130 crore. Thus, the deal’s equity value is estimated to be ₹380 crore.
While this is almost in line with the announced deal value in Jan’20, part of the proceeds is subject to the fulfilment of certain conditions. In lieu of an equity value of ₹380 crore, KNR is likely to immediately realise a payment of ₹310 crore, while the remaining would flow in over the next two years.
Further, NHAI claims and other governmental instrumentalities amount to ₹170 crore – a pass-through to KNR as and when realised. We are yet to factor in any arbitration proceeds in our model. Any such realisation could further boost the balance sheet.
Despite the recent increase in receivables, we believe KNR’s strong balance sheet gives it a key competitive advantage v/s peers: in bidding for newer projects and in terms of strong execution despite financing challenges in the sector – as the dependency on bank financing is minimal. We maintain our Buy rating, with higher TP of ₹310 (prior: ₹295).
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
With initial public offerings galore, we give you a cheat sheet to score some good grades
Biggest risk in selling funds in a rising scenario is exiting early and missing out on further gains
Go for a standard vector-borne diseases policy if you don’t have a regular health plan
No credit risk is an attraction, but note the nuances
After facing severe droughts for several years, farmers in western Maharashtra have turned the corner through ...
A toast to a traditional drip irrigation system still going strong in the Northeast
Raza Mir’s ‘Murder at the Mushaira’ works well as a historical novel that captures the sunset years of the ...
If you see garbage lying on the streets, remove it, says a dedicated plogger on a clean-up drive
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor