Loading…
Knowledge Marine & Engineering Works Ltd
NSE: KMEW BSE: 543273 INE0CJD01029 Services Engineering Services 🔎 Screen
₹6,926 Cr
Market Cap
55.0
P/E
3.04
PEG
16.4%
ROCE
20.0%
ROE
0.39
D/E
43.5%
OPM
-15.3%
% from 52W High
84
α RS
🔍 KMEW is showing a high-conviction setup because it matches 8 of 37 tracked screener presets, RS Rating is 84, an ECS of 88 last quarter, and it has maintained a 91-day Stage 2 momentum persistence. The main caution: the current price already looks stretched relative to its own trading history. Net: Mixed signal stack, not a recommendation. ? Conviction RS Rating ECS Momentum Streaks Valuation
Sources
Conviction 8/37 · RS Rating 84 · ECS 88 · Stage 2 streak: 91d · Valuation: stretched
⚖️ Compare 🔒 Generate Report 🔒 Research Packet 📚 Guides
📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Incorporated in 2015, Knowledge Marine & Engineering Works Ltd provides dredging services, owning and operating marine craft, and repairing, maintaining and refitting marine crafts and marine infrastructure

✓ Strengths 3
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 64.5% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 21.6%
! Concerns 4
  • Stock is trading at 12.0 times its book value
  • Though the company is reporting repeated profits, it is not paying out dividend
  • Promoter holding has decreased over last quarter: -3.64%
  • Tax rate seems low
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
📊 Quick Scorecard
Loading…
🔒
Premium Feature
AI-generated 10-section company profile — business model, financials, strengths, risks & management quality
Upgrade to Premium
Already a member? Log in
📐
3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
Open Model →
Strong beat — FY26 revenue jumped 28% YoY and PAT surged 59% on tonnage tax benefit, but Q4 EBITDA margin compressed sharply to 27.5% from 35.1%. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹256.28 Cr
+28% YoY (FY26); Q4 at ₹67.62 Cr, +42% YoY
EBITDA Margin
38%
-1pp YoY (FY25: 39%); Q4 margin fell to 27.5% from 35.1%
PAT
₹79.11 Cr
+59% YoY (FY25: ₹49.60 Cr); margin expanded to 31% from 25%, aided by negative tax of ₹0.35 Cr
Order Book
₹1,644.89 Cr
unexecuted ₹1,395 Cr; includes two 15-year green tug contracts worth ₹693 Cr
What Went Right
  • Revenue grew 28% to ₹256 Cr; Q4 revenue up 42% YoY to ₹68 Cr.
  • PAT rose 59% to ₹79 Cr, with PAT margin improving to 31% from 25% thanks to early adoption of tonnage tax (negative tax expense of ₹0.35 Cr).
  • Secured ₹1,075 Cr in new orders during the year, including two GTTP green tug contracts (15-year charters worth ₹367 Cr and ₹326 Cr).
  • Successfully executed complex rock dredging at JNPA (ultra-hard rock >170 MPa), strengthening KMEW’s technical credentials.
  • Debt/equity improved to 0.39x (from 0.61x) after ₹285 Cr preferential equity issue; total equity rose to ₹573 Cr.
What to Watch
  • Q4 EBITDA margin compressed to 27.5% from 35.1% last year, despite strong revenue growth — driven by higher material costs (3,592 vs 1,859 in Q4) and depreciation doubling to ₹7.69 Cr.
  • Operating cash flow of ₹74 Cr in FY26 trailed reported PAT of ₹79 Cr, indicating working capital absorption (inventories +₹3.4 Cr, trade receivables +₹4.8 Cr).
  • Negative tax of ₹0.35 Cr in FY26 (vs ₹12.60 Cr tax expense last year) is largely a one-time benefit from tonnage tax transition; recurring tax could normalize, pressuring PAT.
  • Shipbuilding segment (₹183 Cr in order book) is still early-stage; the new Saphale shipyard (15 acres) has not yet demonstrated scale or profitability.
  • Capex of ₹379 Cr far exceeded operating cash flows, funded via debt (borrowings increased from ₹133.5 Cr to ₹222 Cr) and equity; elevated asset intensity creates depreciation drag.
Investor Lens
Thesis stays intact given multi-decade policy tailwinds (Sagarmala, Amrit Kaal, GTTP) and KMEW’s multi-year order visibility. However, Q4 margin decline and reliance on tonnage tax for PAT growth are near-term concerns. Key to watch: (1) execution ramp-up at Saphale shipyard and shipbuilding margins; (2) whether charter hire margins can stabilize amid rising vessel operating costs; (3) further green tug contract wins (Phase I of GTTP only four ports); (4) working capital management as the order book converts to receivables. Next quarter’s margin trajectory will be critical for sustained re-rating.
From investor presentation · AI-generated analysis · Not investment advice
🔒
Premium Feature
Investor Presentation One-Pager — quarterly highlights, what went right/wrong & management guidance
Upgrade to Premium
Already a member? Log in
📈 STRONG Revenue surges 140% YoY; PAT up 473% with 64% OPM
Revenue
Revenue came in at ₹115 Cr, up 139.6% YoY from ₹48 Cr in Jun 2025 and 69.1% QoQ from ₹68 Cr in Mar 2026. The sharp acceleration indicates strong execution momentum in marine services.
Profitability
Net profit jumped 472.7% YoY to ₹63 Cr with EPS of ₹25.09, up from ₹5.22 in the year-ago quarter. PBT stood at ₹65 Cr, aided by a low effective tax rate of 4%.
Margins
Operating profit margin expanded to 64% from 41% YoY and 27% QoQ, reflecting a step-change in operating leverage. Absolute operating profit rose 265% YoY to ₹73 Cr, outpacing revenue growth.
Key Risks
The current PE of 75.77 prices in continued high growth, leaving little room for disappointment. Ultra-low tax rate of 4% may not sustain, and margin expansion of this scale could face mean-reversion pressure.
Outlook
With strong YoY and QoQ momentum, the company appears to be in a high-growth phase. However, sustainability of 60%+ margins and order book visibility will be key to justifying the elevated valuation.
Generated by AI · Jun 2026 results · Not investment advice
🔒
Free Account Required

Create a free Finmagine account to access Finmagine™ Scorecard.

See how this company scores across 5 dimensions — Financial Health, Growth Prospects, Competitive Position, Management Quality, and Valuation — powered by 30+ computed ratios.

Create Free AccountLog In
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Ask AI.

Get 25 expert AI analysis templates — Business KPIs, Comprehensive, Forensic Governance, Peer Comparison, Risk-Reward, Full Research Report, IPO Decoder, Red Flag Detector, and more — ready to paste into ChatGPT, Claude, Gemini, or Perplexity.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Peer Comparison.

Compare this company side-by-side against its sector peers with financial metrics, ratio benchmarking, and relative performance across all key dimensions.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Documents.

Access concall transcripts, annual reports, credit ratings, and investor presentations.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Catalyst Timeline.

Every result, order win, insider trade, SAST trigger, pledge change, concall, and corporate action for this company — in one chronological lane.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Forensic Report.

A filings-based disclosure review of this company's most recent Annual Report — Accounting Quality Signals, Related Party Disclosures, Auditor Signals, and Governance Watchpoints, generated with your own AI key.

Upgrade to PremiumCreate Free Account

Revenue by Segment

Segment Q2FY26 Q3FY26 Trend
Bahrain (Geographical)
0
EBIT -2
Dredging and Ancillary Services
35
EBIT 12
63
EBIT 33
Myanmmar (Geographical)
0
EBIT 0
Ship Building and Repairing
15
EBIT 4
27
EBIT 4
Bahrain
0
EBIT 0
Geographical Dredging Services (Myanmar)
0
EBIT 0
Total 50 90

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

📊 Sector KPIs

Industry-specific KPIs with historical trend — AI-extracted from investor presentations
🔒
Premium Feature
Industry-specific KPIs with historical trend across quarters — AI-extracted from investor presentations
Upgrade to Premium
Already a member? Log in
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Full Report.

Read the complete Finmagine™ investment research report — comprehensive fundamental analysis, business model assessment, competitive positioning, and investment recommendation.

Upgrade to PremiumCreate Free Account

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

🎯
Discover Our Proven Investment Framework Learn how we analyze and rank stocks using advanced quantitative models, multi-dimensional scoring systems, and dynamic discriminatory ranking techniques that have guided successful investment decisions across market cycles.
📊 Explore The Finmagine™ Methodology

A comprehensive, bias-free framework for analyzing and ranking stocks by Financial Strength, Growth Potential, Competitive Edge, Management Quality, and Value.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including equities and mutual funds, involves inherent risks, including the potential loss of principal. All investments are subject to market fluctuations, regulatory changes, and other risks that may affect their value. Past performance is not indicative of future results. This report is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This report does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a SEBI-registered investment adviser or other qualified financial professional before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities or financial instruments discussed in this report. Any such positions, if material, are disclosed to the best of the author's knowledge and are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company, institution, or third party.

Information Sources:
The analysis and opinions expressed herein are based on publicly available information, including but not limited to company filings with the BSE/NSE, annual reports, management commentary, investor presentations, data from the Reserve Bank of India (RBI), SEBI, industry publications, and other reliable financial data sources. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
This report may contain forward-looking statements, forecasts, or projections that are inherently subject to risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. The author does not undertake any obligation to update such statements in the future.

Regulatory Compliance:
This report is intended to comply with the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, as amended, and other applicable Indian laws and regulations.

Limitation of Liability:
The content of this report is provided "as is" without any warranties, express or implied, including accuracy, completeness, merchantability, or fitness for a particular purpose. The author and publisher expressly disclaim any liability for errors, omissions, or any losses incurred as a result of reliance on the information provided. Readers assume full responsibility for their investment decisions.