Ashish Kacholia-Backed Marine Infrastructure Company Bags Order Worth Rs 17,77,64,664 from Dredging Corporation of India; DIIs Buy Stake for the First Time & FIIs Increase Stake!

The company’s shares have delivered a multibagger return of over 3,800 per cent to its shareholders in just 3 years.

Incorporated in 2015, Knowledge Marine & Engineering Works Ltd is a Small-Cap company that provides dredging services, owns and operates marine craft, and offers repair, maintenance, and refitting services for marine crafts and infrastructure.

KMEW has secured a work order from Dredging Corporation of India Limited (DCI) for maintenance dredging and salvaging operations at Kandla Port. The contract spans three years and is valued at Rs 17,77,64,664 (Rupees seventeen crore seventy-seven lakhs sixty-four thousand six hundred and sixty-four only), including taxes. The order involves maintaining water depths at cargo berths and oil jetties over three years by removing accumulated silt and sediments to meet the project’s design specifications. Additionally, it includes salvaging materials such as wooden logs, concrete debris, mixed scrap, and iron scrap from the seabed during the dredging operations.

Currently, KMEW's shares are trading at around Rs 1706 per share on the BSE. The company’s current market capitalization stands at Rs 1843.08 crore. Additionally, the shares have delivered a multibagger return of over 3800 per cent in the past 3 years.

The company doesn’t declare Quarterly Results and as per half yearly results, in March 2024, Knowledge Marine & Engineering Works Ltd recorded a revenue of Rs 57 crore compared to Rs 79 crore. The operating profit stood at Rs 14 crore. The net profit stood at Rs 9 crore compared to a profit of Rs 23 crore. Looking at the annual performance, the company generated a revenue of Rs 164 crore in FY24. The operating profit for FY24 was Rs 69 crore with a net profit of Rs 33 crore compared to a net profit of Rs 47 crore in FY23.

According to the shareholding pattern of the company, the promoters hold a significant 60.61 per cent stake. Public investors own 36.01 per cent of the shares, while Foreign Institutional Investors (FIIs) hold 1.20 per cent which was earlier 0.17 per cent and Domestic Institutional Investors (DIIs) own 2.18 per cent. Ashish Kacholia holds around 2.78 per cent stake in the company.

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Investors must keep this stock on their radar.

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