One of the small-cap stocks engaged in providing dredging services, owning and operating marine craft, and repairing, maintaining, and refitting marine crafts and marine infrastructure. The stock jumped 6.03 percent after the company announced a 1:2 stock split.
Stock Price Movement:
In Tuesday’s trading session, Knowledge Marine and Engineering Works Limited’s share jumped to an intraday high of 6.03 percent from the previous close of Rs. 2,163.50. The stock opened at Rs. 2,213.25 and is currently trading at Rs. 2,212.60, with a high of Rs. 2,294 and a low of Rs. 2,162. The market capitalization now stands at approximately Rs. 2,389.83 crore.
What Happened:
Knowledge Marine and Engineering Works Limited’s Board of Directors has approved the sub-division of its existing equity shares, splitting each Rs. 10 share into two Rs. 5 shares, subject to shareholder and regulatory approval.
The record date for this stock split will be announced after obtaining shareholder approval. This move is aimed at enhancing liquidity and broadening the shareholder base.
Order Book:
Knowledge Marine and Engineering Works Limited order book has risen by 33% from Rs. 614 Cr in March 2024. The company secured new orders worth Rs. 281 Cr between April and October 2024, bringing their total order book to Rs. 817 Cr as of October 2024.
Additionally, KMEW holds a more than Rs. 270 crore order book with the Inland Waterway Authority of India, making them a top contractor for National Waterways-1 projects.
Future Outlooks:
Knowledge Marine and Engineering Works Limited (KMEW) is poised to capitalize on India’s expanding dredging market, projected to grow at a 4.4% CAGR and reach $100 million by 2026.
With 111 National Waterways, 14.5K km of inland waterways, and 7.5K km of coastline, KMEW is well-positioned to benefit from port modernization under the Sagarmala project, financial assistance for shipbuilding, and long-term contracts, ensuring sustainable growth.
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Shareholding pattern
In September 2024, Knowledge Marine and Engineering Works Limited had a majority stake held by the promoters at 60.66 percent, foreign institutional investors at 0.99 percent, domestic institutional investors at 2.85 percent, and the public at 35.50 percent.
In the public holding, Ace Investors Ashish Kacholia has held a stake of 2.78 percent in Knowledge Marine and Engineering Works Limited.
Recent quarter results and ratios:
Knowledge Marine and Engineering Works Limited’s revenue has increased from Rs. 107 crore in H1 FY24 to Rs. 96 crore in H1 FY25, which has down by 10.28 percent. The net profit of Knowledge Marine and Engineering Works Limited has also down by 4.17 percent, from Rs. 24 crore in Q2 FY24 to Rs. 23 crore in Q2 FY25.
Knowledge Marine and Engineering Works Limited’s revenue and net profit have grown at a CAGR of 71.67 percent and 67.03 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 24 percent and 25.8 percent, respectively. The debt-to-equity ratio of the company is to be 0.57x. Knowledge Marine and Engineering Works Limited’s EPS is to be Rs. 30.
Company Overview:
Knowledge Marine and Engineering Works Limited (KMEWL) was established in 2015 and specializes in the marine sector. The company provides dredging services, owns and operates marine crafts, and maintains, repairs, and refits marine crafts and infrastructure. KMEWL has built a significant presence in the industry, with operations extending to countries like Myanmar.
Written By – Nikhil Naik
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