Knowledge Marine & Engineering Works Ltd.'s stock has rocketed 210.5% in the last 12 months from Rs 901 to the current trading price of Rs 2,800 apiece on the NSE.
The prolonged rally has been supported by strong fundamentals of the company, including a spectacular first quarter performance for the financial year 2027.
Knowledge Marine reported a 440.9% year-on-year increase in consolidated net profit to Rs 61.7 crore for Q1 FY27, compared with Rs 11.4 crore in the corresponding quarter last year.
Revenue rose 137.9% year-on-year to Rs 115.4 crore from Rs 48.5 crore. Ebitda increased 267% to Rs 73.4 crore from Rs 20 crore, while Ebitda margin improved to 63.6% from 41.2% a year earlier.
On Monday, the shares rallied up to a high of Rs 2,999.90. Later, the scrip pared gains to trade 2.6% higher at Rs 2,800.90 apiece.
Incorporated in 2015, Knowledge Marine & Engineering Works Ltd provides dredging services, owning and operating marine craft, and repairing, maintaining and refitting marine crafts and marine infrastructure.
The Company has delivered good profit growth of 64.5% CAGR over last 5 years, and has a healthy return on equity track record from the long term perspective as well, with three years ROE standing at 21.6%.
However, according to Screener data, the stock is now trading at 11.7 times its book value. Promoter holding has decreased over last quarter by nearly 4%.
Despite the downside factors, Vikram Datwani from Nuvama securities has a 'buy' call on the shares.
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