The shares of the small-cap company gained up to 8 percent after the company received a work order from V.O. Chidambaranar Port worth Rs 5.86 crore.
With a market capitalization of Rs 1,474.28 crore, the shares of Knowledge Marine & Engineering Works Ltd were trading in green at Rs 1,364.95 per share, increasing drastically by around 3.30 percent as compared to the previous closing price of Rs 1,321.45 apiece.
The stock has seen such a bullish movement after Knowledge Marine & Engineering Works Ltd received a new work order from V.O. Chidambaranar Port worth Rs 5.86 crore for the work of supply, manning, operation, and maintenance of one number high-speed patrol boat of 20 knots speed or more on hire basis for five years.
Looking forward into the company’s financial performance, revenue decreased by 28 percent from Rs 79 crore in H2FY23 to Rs 57 crore in H2FY24, during the same time period, net profit plummeted by 61 percent from Rs 23 crore to Rs 9 crore.
The company has a strong order book worth Rs 450 crore and a total execution in H2FY24 worth Rs 15 crore. Recently, the company executed initial capital and maintenance dredging at Sittwe Port, Myanmar, demonstrating expertise with a project value of Rs. 248 crores and a dredging quantity of 16.73 million cubic meters.
Ace investor Ashish Kacholia holds 3,00,000 shares, i.e. equivalent to 2.78 percent of the company as of March 2024.
Examining the company’s important ratio, the return on equity declined from 35.57 percent in FY22-23 to 17.21 percent in FY23-24, while during the same time frame return on capital employed also declined from 46.48 percent to 24.20 percent. In contrast, the net profit margin (NPM) stands at 19.56 percent in fiscal years 23-24.
Knowledge Marine & Engineering Operations Limited is an India-based firm that owns, charters/hires, manns, operates and maintains maritime vessels, as well as dredging and repairs/maintenance of marine crafts, marine infrastructure, and related operations.
Written by:- Abhishek Singh
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