KNR Constructions’ shares increased by 9% to 347, reaching a new 52-week high on the BSE on Friday after the company said its board approved a 1:1 bonus share ratio. The Company would also seek the approval of the members of the Company by postal ballot, including the increase of the Company’s approved share capital, it said.
The stock of the construction & engineering company has rallied 17 percent over the past week since the company revealed a bonus problem proposal on Monday, December 14. In contrast, during the week, the S&P BSE Sensex was up 1.6 percent.
KNR Construction posted an 85 percent year-on-year (YoY) leap in its consolidated net profit of Rs 153.9 crore in the quarter of July-September (Q2FY21).
Due to the growing share of higher-margin irrigation projects, the EBITDA margin remained strong at 26.1 percent, resulting in a strong earnings output.
The company commented about its order book that it was high at Rs 8,550 crore, of which Rs 4,693 crore from the road sector and Rs 3,862 crore from the irrigation sector were strong. The management also said that the company will start to target different markets to add more market verticals to the organization in the Elevated Metro Rail and Railway Projects construction sectors.
KNR Constructions was trading 6 percent higher at Rs 338 at 01:51 pm, compared to a 0.11-percent fall in the S&P BSE Sensex. As a combined 2.4 million equity shares had changed hands on the NSE and BSE until the moment of writing this article, the trading volumes on the counter jumped over two-fold.