Ship Building stock in focus after securing order worth ₹47.6 Cr from Deendayal Port Authority

Synopsis:
Knowledge Marine & Engineering Works Limited has secured a contract from Deendayal Port Authority at the Ghogha Ro-Ro Terminal in Gujarat for a consideration of Rs.47.59 crores.

The shares of small-cap firm engaged in dredging operations, marine vessels, repair, maintenance, and refurbishment of marine crafts gained notice after receiving a work order from Deendayal Port Authority.  

With the market capitalization of Rs.1,920.69  crore, the shares of Knowledge Marine & Engineering Works Limited are trading at Rs.1,778.25, up by 2.65 percent from its previous day’s closing price of Rs.1,732.40  per equity share.

Work Order

Knowledge Marine & Engineering Works Limited has received a new contract from Deendayal Port Authority for dredging work at the Ghogha Ro-Ro Terminal in Gujarat. The firm secured the contract by outbidding Sahara Dredging Limited and Rock and Reef Dredging Private Limited, which were ranked L2 and L3.

The project covers dredging of the approach channel, turning circle from the existing level up to the designed depth of 6.8 meters below chart datum. The contract is valued at Rs.47.6 crore and is expected to be executed over 12 months.

The work will be carried out in two phases: the initial capital dredging during the first three months, followed by maintenance dredging for the remaining nine months. To ensure efficiency, KMEW plans to use its own dredging vessel already stationed in Gujarat. Execution of this project will show the company’s ability to deliver complex assignments on time. At the same time, it also demonstrates the trust placed in the company’s capabilities.

Management Commentary

Knowledge Marine & Engineering Works Limited’s CEO, Mr. Sujay Kewalramani, commented as follows:” This latest contract win further strengthens our presence at Deendayal Port and underscores the trust placed in us by the Deendayal Port Authority (DPA). Our consistent success in securing such projects highlights our operational excellence and dedication to enhancing India’s maritime infrastructure. As part of our strategy to maximise the utilisation of our existing assets, we will deploy our Trailing Suction Hopper Dredger (TSHD) on the Western coast. 

This work order adds revenue of Rs. 47.59 crores to the existing order book to be executed in the current financial year. This latest contract win further strengthens our presence at Deendayal Port and underscores the trust placed in us by the Deendayal Port Authority (DPA). Our consistent success in securing such projects highlights our operational excellence and dedication to enhancing India’s maritime infrastructure. 

As part of our strategy to maximise the utilisation of our existing assets, we will deploy our Trailing Suction Hopper Dredger (TSHD) on the Western coast. This work order adds revenue of ₹ 47.59 crores to the existing order book to be executed in the current financial year.”

Also read: Infra stock jumps 5% after receiving ₹11 Cr order for road construction project in Rajasthan

Company Profile & Others

Knowledge Marine & Engineering Works Limited, founded in 2015, is engaged in owning and operating marine vessels, dredging, and providing repair, maintenance, and refit services for marine crafts and infrastructure. The company has built a strong order book with reputed clients, including the Ministry of External Affairs, Kolkata Port, Visakhapatnam Port, Deendayal Port, Paradip Port, Dredging Corporation of India, and several other ports.

The company’s order book grew significantly, starting with Rs.733 crore, and then won new orders worth Rs.353 crore. After completion of some orders worth Rs. 201 crore, the total value of its unfinished orders rose to Rs.881 crore.

KMEW Group is expanding into the shipbuilding and ship repair sector to create new opportunities. By entering this industry, the company can diversify its revenue and reduce reliance on traditional shipbuilding and dry-docking services.

The acquisition also allows KMEW to build ancillary crafts in-house, which helps lower costs and improve profit margins, also strengthenING its self-reliance, enabling the company to independently bid for shipbuilding contracts. Additionally, integrating shipbuilding with KMEW’s existing dredging and marine services creates operational efficiencies and synergies.

The company’s revenue went up from Rs.43.14 crore in Q1FY25 to Rs.48.47 crore in Q1FY26. Net profit went up from Rs.10.4 crore in Q1FY25 to Rs.11 crore in Q1FY26. Its return on equity is 25.9 percent, and return on capital is 24.7 percent. With a P/E ratio of 37.59, much higher than the industry average of 36.62, the stock looks expensive compared to others.

Written by: Jhanavi Sivakumar

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