This Ashish Kacholia-owned stock has zoomed 100% in 3 months; hits new high

Shares of Knowledge Marine & Engineering Works (KMEW) hit a new high of Rs 2,343.05, as they rallied 10 per cent on the BSE in Monday’s intra-day trade in an otherwise range-bound market. In the past one month, the stock has surged 28 per cent. In comparison, the BSE Sensex was up 0.08 per cent at 79,867 at 10:17 am.

 

In the last three months, the stock price of KMEW has more-than-doubled or zoomed 101 per cent from a level of Rs 1,168.25. It has jumped 63 times or 6,232 per cent from its issue price of Rs 37 per share. The company made its stock market debut on March 22, 2021 under the SME (Small and Medium Enterprises) segment.

 

With effect from November 14, 2024, the equity shares of KMEW were listed and admitted to dealings on the Main Board of both the BSE & NSE.

 

Investor Ashish Kacholia owned 300,000 shares or 2.78 per cent stake in the company at the end of September 2024 quarter, the shareholding pattern data shows.

 

KMEW specializes in dredging operations that are crucial for the development and maintenance of maritime and inland waterway infrastructure. Their business includes capital dredging to deepen and expand channels, berths, and basins at major and minor ports, ensuring these facilities can accommodate larger vessels and increasing their operational efficiency. 

 

The company is involved in the construction of ships, boats, and other marine vessels, catering to the specific needs of the maritime industry. The company also provides repair and refit services for marine crafts, ensuring that vessels remain operational, safe, and compliant with regulatory standards.

 

Looking ahead, the management remains optimistic about the company’s revenue outlook and expects improved performance in the coming years, with continued earnings before interest, tax, depreciation and amortization (EBITDA) margins of around 30 per cent. The management said its confidence is bolstered by a robust order book of Rs 733 crore, including significant wins of Rs 694 crore in FY24. These contracts, with an average tenure of 3-4 years, provide a strong foundation for the company’s future growth and strengthen its position both nationally and internationally as a global leader in marine services.

 

The government’s initiatives and strategic investments in the maritime sector are not only enhancing port efficiency and reducing logistics costs but also creating a thriving environment for the dredging industry. As India continues its journey towards becoming a global economic superpower, the dredging industry stands to benefit immensely from these progressive developments, KMEW said in its FY24 annual report.

 

The company has established a strong relationship with port authorities including Kolkata Port Trust, Vishakhapatnam Port Trust, Deendayal Port Trust and Dredging Corporation of India.

 

The Indian government has been actively promoting initiatives like the Sagarmala Programme, which aims to enhance the performance of the country’s logistics sector by unlocking the potential of waterways and the coastline. This includes developing new ports, improving existing ones, and ensuring the availability of modern port ancillary crafts like tugs, dredgers, pilot boats, and other service vessels necessary for efficient port operations, it added