On June 30, KNR Constructions shares jumped 1.5% after its subsidiary, KNR Kaveri Infra, entered into a contract with the National Highways Authority of India for Karnataka’s road project.

KNR Kaveri Infra contracted a concession agreement for the four- laning, with paved shoulder, of the Mysore to Kushal Nagara section on hybrid annuity mode, KNR Construction stated in an exchange filing.
At 9:29 am, KNR Construction traded 0.66% higher at Rs 242.50 on the NSE.

The NHAI halted road project awards during this period, resulting in no Letter of Offer Acceptance (LOAs) Nuvama Institutional Equities mentioned in a report.

In March, 4,878 km of work was awarded, with the NHAI giving a contract for 2,627 km. In contrast, road awarding in April and May was nominal, with 100 km awarded by the Road Transport and Highways Ministry.

Despite the momentary slowdown, analysts remain optimistic about the infrastructure sector. Axis Securities said NHAI plans to award several projects under the Bharatmala Pariyojana initiative, the Centre’s flagship programme to build highways and expressways, driving the road construction. Axis Securities expects an increase in awarding activities in FY23, a pre-election year.

KNR Construction imagines an order inflow worth Rs 4,000-Rs 5000 crore in FY24. Axis Securities expects KNR Construction’s revenue to grow at a CAGR of 13% over FY22-25. The stock lost 8.17% of its value over the last 6 months.