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Knowledge Marine & Engineering Works Ltd (KMEW)

Services · Ship Building · NSE · Updated 17 September 2026
By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings
₹2,705.5 ↑ 121.42% (1Y)

🎯 Key Takeaways

  • KMEW is in a high-growth, capital-intensive phase marked by aggressive capital raising and expansion in shipbuilding services. The company has demonstrated strong profitability and returns, with ROE and ROCE at 60.
  • Revenue grew 70.7% QoQ to ₹115 in Q1FY27.
  • ⚠️ 1) High leverage (D/E of 0.61) combined with aggressive capital raises could strain cash flows if project execution falters. 2) Margin expansion is im
Market Cap
₹6,613
P/E Ratio
45.8
P/B Ratio
30.41
ROE
60.3%
ROCE
42.0%
Debt/Equity
0.61
Promoter
51.6%
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📖 The Story

KMEW is in a high-growth, capital-intensive phase marked by aggressive capital raising and expansion in shipbuilding services. The company has demonstrated strong profitability and returns, with ROE and ROCE at 60.3% and 42%, respectively, supported by rising margins and efficient operations. However, recent financials show increasing leverage and a shift toward equity financing, signaling strategic investments in capacity or order pipeline. The narrative centers on execution of capital allocation plans amid growing investor interest.

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📰 What's Happening

In Q1FY27 (June 2026), KMEW raised Rs 149.9995 crores via preferential allotment of 764,317 shares to non-promoter investors, increasing paid-up capital to Rs 12.6821585 crores. This follows regulatory approvals after an EGM on July 19, 2026, where shareholders endorsed the preferential issue with revised pricing at Rs 1,962.52 per share. The move complies with SEBI norms and locks shares for compliance, avoiding promoter dilution but expanding institutional ownership. Earlier board meetings refined the issue terms, including floor pricing and valuation disclosures, indicating careful structuring to maintain investor confidence.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricJun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue48509068115
Operating Profit1716351167
OPM %34.1%32.5%38.5%16.1%58.2%
Net Profit1112332463
EPS₹10.43₹10.37₹13.35₹9.63₹25.67

Operating performance shows a clear upward trajectory: revenue grew from Rs 48 crore in June 2025 to Rs 115 crore in June 2026, with operating margins expanding from 34.1% to 58.2%. Profitability improved significantly, with net profit rising from Rs 11 crore to Rs 63 crore and EPS from Rs 10.43 to Rs 25.67 over the same period. This surge in margins and earnings reflects operational scaling and possibly higher-margin project execution, though the pace of growth suggests front-loaded investments or contract wins. The sharp rise in OPM suggests improved cost control or project mix, but sustainability depends on execution in upcoming quarters.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance in the latest filings, but actions indicate confidence in future growth prospects. The preferential issue was necessitated by capital requirements tied to ongoing projects or order book expansion, which management likely views as strategic investments. The repeated board-level approvals and regulatory compliance steps suggest a structured capital raise to fund working capital, debt reduction, or project execution without disrupting promoter control. The absence of guidance implies focus on operational delivery rather than long-term projections.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

ItemMar 2024Mar 2025Mar 2026Mar 2026
Equity Capital11111112
Reserves157207229558
Borrowings60133146222
Total Liabilities259399432820
Fixed Assets108159190211
Investments2960460
Total Assets259399432820

The balance sheet shows a steady rise in equity and reserves, with total assets growing from Rs 399 crore (March 2025) to Rs 820 crore (March 2026), driven by capital infusions and asset accumulation. Borrowings increased from Rs 133 crore to Rs 222 crore, indicating higher leverage, possibly to finance working capital or expansion. Despite this, equity remains the dominant funding source, and the debt-to-equity ratio of 0.61 suggests manageable leverage relative to equity strength. The capital raise via preferential issue strengthens equity buffers but introduces dilution for non-promoter investors post-issue.

💰 Cash Flow Statement (₹ Cr)

ItemMar 2025Mar 2026
Operating+58+74
Investing-127-379
Financing+63+347
Net Cash Flow-6+42

👥 Shareholding Pattern

CategoryQ3FY26Q4FY26Q1FY27
Promoters53.6%53.6%51.6%
FII11.0%11.8%12.1%
DII0.5%1.7%1.5%
Public22.8%22.9%26.0%
# Shareholders13,16815,36522,941

Promoter holding has slightly declined from 53.63% in Q4FY26 to 51.56% in Q1FY27, reflecting partial dilution from the preferential issue. FII holding rose from 10.99% in Q3FY26 to 12.11% in Q1FY27, indicating growing institutional confidence. DII increased marginally from 0.46% to 1.54%, while public shareholder count surged from 13,168 to 22,941, suggesting rising retail interest. The broadening shareholder base and FII accumulation may support liquidity and price discovery, though promoter control remains intact.

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⚖️ Peer Comparison — Ship Building

Company MCap (₹ Cr) P/E ROCE ROE D/E
SWANDEF 14,215 — -7.5% -340.1% 39.13
KMEW 6,613 45.8 42.0% 60.3% 0.61
537669 256 — — — 0.47
HRYNSHP 61 14.8 0.8% -2.3% 0.11
533427 45 12.8 7.1% 4.3% 0.48
519413 31 — 0.9% 13.6% -3.70
509563 11 66.0 1.1% 0.9% 0.00
BHARATIDIL — — 11.3% 9.2% -0.18

🔗 Peer Stock Analyses

⚠️ Risk Factors

1) High leverage (D/E of 0.61) combined with aggressive capital raises could strain cash flows if project execution falters. 2) Margin expansion is impressive but may compress if input costs rise or project mix shifts to lower-margin contracts. 3) The reliance on preferential equity issues for funding suggests limited access to cheaper debt or retained earnings, raising sustainability concerns. 4) Share price volatility may increase post-allotment due to lock-in periods and new investor entry, especially if institutional selling occurs after lock-in expiry.

📋 Recent Filings

🧠 Analyst's Read

KMEW is executing a capital-intensive growth strategy with strong operational momentum, but funding through equity dilutes ownership and may pressure margins if growth slows. Investors should monitor the deployment of raised capital, order book visibility, and margin trajectory in upcoming quarters to assess sustainability.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-17.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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