The company’s latest results showed sharp declines in sales, profit, and margins, with rising interest costs adding to pressure on the stock.
Shares of KNR Constructions fell on Wednesday after the company reported a steep fall in quarterly profit.
SEBI-registered analyst Mayank Singh Chandel advised investors to stay away due to weak results and poor technical indicators.
Earnings Review
KNR Constructions’ first quarter (Q1) net sales fell 31% year-on-year to ₹975.21 crore, while profit before tax dropped 46.77% to ₹158.06 crore.
Profit after tax declined 56.1% to ₹155.19 crore. Interest costs surged 67.63% to ₹170.75 crore over the last nine months.
The operating profit margin slipped to 22.71%, its lowest in five quarters, and earnings per share dropped to ₹4.95.
Technical Breakdown
Chandel noted that KNR Constructions has been trading in a broad sideways range since early 2021, showing no clear long-term trend.
The stock is currently below its 200-day exponential moving average (EMA), indicating a lack of bullish momentum. It sits in a key support zone of ₹204–₹216, with the current market price at ₹210.90.
Major resistance is seen near ₹360, a level where the stock has faced repeated selling pressure in past rallies. Chandel advised avoiding the stock for now, citing the weak earnings and lack of supportive technicals.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘bearish’ amid ‘normal’ message volume.
KNR Constructions’ stock has fallen 41.4% so far in 2025.
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