KNR Constructions' share price rallied over 7 percent on Tuesday after the company said that the board will meet on Friday (December 18) to consider a maiden bonus issue. The stock climbed as much as 7.4 percent to Rs 318 per share on the NSE. At 12:24 pm, the shares traded 6 percent higher to Rs 314.
In the previous month, the stock has rallied as much as 23 percent to current levels, outperforming the 6 percent gain made by S&P BSE Sensex.
In its regulatory filing, the company said, "The meeting of the board of directors of the Company is scheduled to meet on Friday the 18th day of December 2020 at 12:30 P.M at Hyderabad inter alia to consider the declaration of bonus shares and other related issues."
In the quarter gone by, the company reported a consolidated net profit of Rs 46.68 crore, as against profit of Rs 42.89 crore in the year-ago period. Sequentially, the profit declined from Rs 84.82 crore reported in the March quarter of FY20. The profit before tax stood at Rs 59.28 crore, while revenue from operation came in at Rs 522.52 crore.
Motilal Oswal in its recent research report said that the order book of the company stood strong at Rs 8,550 crore, which provides healthy revenue visibility.
The brokerage said that KNR Constructions strong balance sheet gives it a key competitive advantage against its peers given the bidding for new projects and strong execution despite financing challenges in the sector.
(Edited by : Ajay Vaishnav)
First Published: IST