During Monday’s trading session, the shares of a company specialising in marine engineering and dredging services surged 8.5 percent to Rs. 1,837 on BSE, after the company announced securing an order worth nearly Rs. 147.43 crores from the Inland Waterways Authority of India (IWAI).
With a market cap of Rs. 1,963.6 crores, the shares of Knowledge Marine & Engineering Works Limited closed in the green at Rs. 1,818, up by nearly 7.4 percent, compared to its previous closing price of Rs. 1,692.45.
What’s the news:
Knowledge Marine & Engineering Works Limited received a Letter of Award (LoA) valued at nearly Rs. 147.43 crores from the Inland Waterways Authority of India (IWAI).
According to the latest regulatory filings with BSE, the orders include the fairway maintenance for the Sultanganj–Mahendrapur (74 Km) and Mahendrapur–Barh (71 Km) sections of National Waterway–1 (River Ganga). The contract is set for a three-year duration, with the potential for an additional two-year extension.
This recent contract win for two strategic stretches totalling 145 kilometres under the IWAI’s Jal Marg Vikas Project, marks a significant milestone for the company.
This initiative, aimed at increasing inland waterway capacity, represents the company’s third contract win within the project, further reinforcing its leadership in the industry.
The contract involves ensuring safe navigation for vessels along both sections of National Waterway-1 (NW-1) through efficient dredging and enhanced river conservancy measures.
The company plans to purchase three cutter suction dredgers and three work boats, which will be mobilised and deployed within the specified timeline.
Previous Orders:
On 20th September, Knowledge Marine & Engineering Works Ltd. secured a work order valued at Rs. 19.27 crores from the Mumbai Port Authority for the hiring of two patrol boats.
The contract involved the deployment of two patrol boats for the use of CISF to provide dedicated security services at Mumbai Port. One of the
patrol boats was designated as a multipurpose launch (VIP cum Security launch), while the other operated as a Security Launch.
On 3rd October, the company was awarded a work order worth Rs. 17.77 crores by the Dredging Corporation of India (DCI) for maintenance dredging and salvaging work at Kandla Port.
The scope of the contract at Kandla Port comprised two distinct activities. The first involved maintaining water depths at cargo berths and oil jetties for 3 years by removing accumulated silt and sediments to meet the project’s design specifications.
The second involved salvaging materials such as wooden logs, concrete pieces, mixed scrap, and iron scrap from the seabed during dredging operations.
Shareholding Pattern:
As per the September 2024 shareholding pattern, the Promoters hold a 60.66 percent stake in the company, Foreign Institutional Investors (FII) hold a 1.03 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 35.46 percent and 2.85 percent stake in Knowledge Marine, respectively.
As of September 2024 shareholding pattern data available with the BSE, the ace investor Ashish Kacholia holds a 2.78 percent stake in the company.
Stock Performance:
The stock has delivered positive returns of nearly 33.8 percent in one year, as well as around 40.7 percent returns in the last six months. So far in 2024, the shares of Knowledge Marine & Engineering Works have given positive returns of about 21.2 percent.
About the company:
Knowledge Marine & Engineering Works Limited is engaged in the business of providing dredging services, owning, chartering/hiring along with manning, operation and technical maintenance of marine crafts, repairs/maintenance of marine crafts and marine infrastructure and allied works in India.
Written by Shivani Singh
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