A Breakout Pullback Trade Setup: Keep This Infra Stock on Your Radar

Low PE and High ROE and ROE: DIIs have increased their stake in the recent quarter.

KNR Constructions Ltd, incorporated in 1995, is a Hyderabad-based infrastructure project development company providing EPC services in segments such as roads and highways, irrigation, and urban water infrastructure management.

At the start of Wednesday's trading session, the share of KNR Constructions Ltd opened at Rs 342.25 per share, compared to the previous day's closing figure of Rs 340.90 per share on the BSE. The stock has attracted a heavy volume today, reflecting strong demand in the market. The current market capitalization stands at Rs 10,213 crore, and the stock has generated an impressive return of over 45 per cent in just 1 year.

Looking at the technical chart of the stock on the weekly time frame, the stock underwent a breakout and crossed a peak of Rs 344, which was reached in August 2021. In the first week of June, it surpassed this peak and reached a high of Rs 407, consolidating and forming a base around this former resistance level. Today, it formed a strong green candle with increased volumes at this support level. Investors should consider keeping this stock on their watch list.

As per the Quarterly Results, in the fourth quarter of FY24, KNR Constructions Ltd recorded a revenue of Rs 1414 crore. The operating profit for Q4 FY24 stood at Rs 375 crore. The net profit for Q4 FY24 was Rs 341 crore. Looking at the annual performance, the company generated a revenue of Rs 4429 crore in FY24, compared to Rs 4062 crore in FY23. The operating profit for FY24 was Rs 1048 crore, with a net profit of Rs 752 crore compared to a profit of Rs 439 crore.

Investors must keep this Small-Cap stock on their radar.

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