Rs 8,849 crore order book: Road construction company receives order worth Rs 2,163.07 crore from Tamil Nadu

Constructions-ltd-200046">KNR Constructions Limited has officially received a Letter of Acceptance (LOA) for the construction of a significant four-lane elevated corridor along the East Coast Road (ECR) in Tamil Nadu. Spanning from Thiruvanmiyur to Uthandi (SH-49), the project covers design chainage from Km 11+480 to Km 24+780. Valued at Rs 2,163.07 crore, the development will be executed under the Hybrid Annuity Mode (HAM). This strategic infrastructure piece aims to alleviate traffic congestion on one of the region's most critical arterial routes, connecting key urban points to the coastal highway.

The project timeline specifies a construction period of 1095 days, followed by an operation period of five years from the Commercial Operation Date (COD). In compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015, the company has notified the exchanges of this development. It is important to note that the formal signing of the Concession Agreement is currently contingent upon the legal outcome of W.A. No. 284 of 2026 in the Madras High Court.

About the Company

KNR Constructions Ltd, founded in 1995, is a Hyderabad, India-based infrastructure development company. They specialise in Engineering, Procurement and Construction (EPC) services for various sectors, including roads and highways, irrigation systems, and urban water management. Their services include building roads, bridges, and flyovers using different contracting models like EPC (design, procure, and construct), BOT (build, operate, transfer), and HAM (hybrid annuity model). They also take on irrigation projects, manage urban water infrastructure, and even have experience in agricultural projects.

The company has a market cap of over Rs 4,000 crore and its Order Book stands at Rs 8,849 crore. The shares of the company have a PE of 8x, an ROCE of 27 per cent and an ROE of 29 per cent. The stock is up by 14 per cent from its 52-week low of Rs 130.25 per share.

Disclaimer: The article is for informational purposes only and not investment advice.