Nuvama Institutional Equities has started covering Knowledge Marine & Engineering Works (KMEW) and gave it a Buy rating with a target price of Rs 2,500.
Why Nuvama Is Bullish on KMEW
- Maritime sector tailwinds: India is focusing heavily on port and inland waterway infrastructure, giving companies like KMEW a strong growth backdrop.
- Strong order book: As of November 2025, KMEW holds about Rs 17.5 billion of orders – almost nine times its estimated revenue for FY25 – including major government contracts and green‑tug projects.
- High margins and diversified work: The firm enjoys an EBITDA margin of 35‑40% and works across dredging, shipbuilding and related services, which helps it keep profits healthy.
Growth Outlook
Nuvama expects revenue, EBITDA and profit after tax to grow at 58%, 62% and 71% respectively from FY25 to FY28. The order inflow is projected to rise about 42% each year, and the company could see profit margins above 30% by FY28 under the new Tonnage Tax Scheme.
Execution Beyond India
KMEW has demonstrated the ability to deliver projects in other countries such as Myanmar and Bahrain, and it maintains its own fleet and construction capabilities, which should support long‑term order visibility.
Key Risks
- New ventures may not perform as expected.
- Policy changes or adverse weather could affect project timelines.
- International exposure could bring currency or geopolitical risks.
- Delays in order execution or new order inflows.
Shareholding Pattern
The promoters own about 60.7% of KMEW, while the remaining 39.3% is held by public investors such as mutual funds, foreign institutional investors and individuals. Notably, ace investor Ashish Kacholia holds roughly 2.8% of the company.
Disclaimer
Remember, this is my perspective, not a prediction. Do your own research before making any investment decisions.