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Shares of Knowledge Marine & Engineering Works (KMEW) hit a record high of Rs 392.40 on the BSE on Monday as the stock rallied 20 per cent amid heavy volumes in an otherwise weak market. The stock of the shipping company has zoomed 44 per cent in the past two trading days. In comparison, the S&P BSE Sensex was down 0.7 per cent at 55,680 at 11:52 AM.
Trading volumes on the counter jumped nearly 16-fold with 251,000 equity shares changing hands, as against an average 16,000 shares that traded daily during the past two weeks on the BSE.
KMEW is currently trading on BSE SME Platform under the M group. The SME platform of the exchange is intended for small and medium-sized companies with high growth potential. The SME platform of the Exchange is open for SMEs whose post-issue paid-up capital has less than or equal to Rs 25 crore.
KMEW made stock market debut on March 22, 2021. The company allotted shares at an issue price of Rs 37 per cent share in the initial public offer (IPO).
KMEW was incorporated in the year 2015 with a vision to own and operate marine craft for the Government of India and private players. The Company provides multiple solutions of marine engineering including dredging at various ports, carrying out repair and refit services of naval and merchant ships, conducting hydrographic and magnetometer surveys and technical solutions for maintenance and operations of vessels.
On May 31, 2022, KMEW had received a contract by state-owned company Dredging Corporation of India worth Rs 68 crore for tenure of 12 months. The project is being developed under the Pradhan Mantri Matsya Sampada Yojana (PMMSY).
The contract involves the excavation or removal of rock and sediment from the seabed, to increase the depth of the navigation channels, berthing areas to ensure the safe passage of fishing boats. KMEW has partnered with Sahara Dredging Limited to execute this project.
With this contract, KMEW said its total book position to race past Rs 250 crore mark. At the beginning of the current financial year, FY23 KMEW had an order book of Rs 182 crore. Currently, the company’s market capitalisation stood at Rs 401.66 crore on the BSE, the exchange data shows.
KMEW expects to register a turnover of more than Rs 125 crore in the current fiscal year, by completing half of the order book. Also, there would be no additional capital expenditure incurred by the company.
The Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying has been implementing a flagship scheme namely Pradhan Mantri Matsya Sampada Yojana (PMMSY) with a highest-ever investment of Rs 20,050 crore in all States/Union Territories (UTs) including in the State of Tamil Nadu for development of fisheries with effect from financial year 2020-21.
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