Knowledge Marine Gets ‘Buy’ Call As Nuvama Initiates Coverage
The brokerage notes that the company benefits from high entry barriers in the industry and a strong win-rate in securing contracts.
Nuvama has initiated coverage on Knowledge Marine & Engineering Works Ltd with a ‘Buy’ rating and a target price of Rs 2,500.
Nuvama highlighted that Knowledge Marine & Engineering Works operates as an integrated and diversified marine services platform, offering a wide range of solutions across dredging, port operations, and marine infrastructure.
The brokerage notes that the company benefits from high entry barriers in the industry and a strong win-rate in securing contracts.
It further added that margin resilience will be supported by the Tonnage Tax Scheme, which provides tax efficiency for shipping companies, thereby aiding profitability at the Profit After Tax level.
Based on its projections, Nuvama expects growth between FY25 and FY28, with revenue, Earnings Before Interest, Taxes, Depreciation and Amortisation, and PAT registering a compound annual growth rate of 58%, 62%, and 71%, respectively
Earlier on Dec. 19, Knowledge Marine & Engineering Works announced a work order from Dredging Corporation of India for rock dredging at Coastal Berth at JNPA and discharge of dredged material at DS-3 Dumping Ground valued at Rs 58.39 crores.
Knowledge Marine will deploy an integrated fleet of advanced marine assets, including a dedicated drilling and blasting barge, trailing suction hopper dredgers (TSHDs), a backhoe dredger, self-propelled hopper barges, and secured explosives storage facilities. The company has 60 days to mobilize equipment and obtain all necessary permissions before commencing operations.
