Nuvama has initiated coverage on Knowledge Marine with a buy rating and a target price of ₹2,500 per share, stating that India’s maritime and inland waterways sectors are entering a multi-year investment cycle that strongly favours companies with specialised capabilities and high entry barriers. The brokerage said Knowledge Marine Engineering & Works (KMEW) stands out with a diversified presence across dredging, shipbuilding and ancillary services, supported by a robust execution track record.
According to Nuvama, the company commands a 50% order-win rate in an industry with limited competition, leading to strong visibility on forward earnings. Its order book as of November 2025 stands at ₹17.5 billion, up 2x year-on-year and equivalent to 8.7 times FY25 sales, with major orders from key ports, the Inland Waterways Authority of India, Dredging Corporation of India and a ₹6.5 billion order intake for green tugs under the GTTP programme.
The brokerage said Knowledge Marine maintains 35–40% EBITDA margins, supported by operational expertise and selective bidding. Its business mix — 43% dredging, 11% shipbuilding and 46% ancillary services — provides strong diversification and revenue resilience.
Nuvama is baking in FY25–28 revenue, EBITDA and PAT CAGR of 58%, 62% and 71%, respectively, with order intake and order book expected to grow at 42% each over the same period. The brokerage believes KMEW is positioned at the forefront of a once-in-a-generation maritime infrastructure push, supported by structural reforms and rising investment across waterways and port infrastructure.
Disclaimer: The views and recommendations above are those of Nuvama. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
