Knowledge Marine & Engineering Works Ltd (KMEW) — share price & stock analysis

Market cap

₹5,385 Cr

P/E

68.3×

ROE

20.0%

vs own history (since 2022)

91st pctile

Book value / share

₹233

EPS (TTM)

₹32.3

10-yr median P/E

44.1×

Revenue (FY26)

₹256 Cr

Profit after tax (FY26)

₹79 Cr

Weinstein stage

Stage 2 (47 weeks)

Data as of

1 July 2026

5 of the 6 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROCE 16% — decent; debt moderate (0.39× equity); margins mid-band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double.

The market has pre-paid for growth that hasn’t arrived yet

Since Nov 2022, the stock is up 450% while earnings per share grew 44%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 68.3× means the market is paying up — this is the expensive end of its own history since 2022 (91st percentile).pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots (the window starts at the first stable snapshot — earlier IPO-era share-count revisions are excluded, since they are not earnings events); between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (44.1×).

An uptrend that has held for 47 weeks

Every stock cycles through the same four seasons — a flat base (stage 1), an advance (2), a top (3), a decline (4). Right now this one is in Stage 2: advancing, 47 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹1,647 today) — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 48 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

7 of the last 8 years ended with profits higher — quiet, steady compounding

Over 8 years, sales went from ₹11.0 Cr to ₹256 Cr (about 48% a year), and profit from ₹1.0 Cr to ₹79.0 Cr.revenuenet_profit

Margins widened 10.6 points along the way — growth with improving economics.operating_profit

Sales exploded 45% last quarter

Mar 26 sales were ₹68.0 Cr, up 45% on the same quarter last year.revenue

Margins are compressing — 35% → 27% in a year

Of every ₹100 of sales, the company keeps ₹27.5 as operating profit (a year ago it kept ₹35.1).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 30.5% in FY24 and has been rebuilt to 37.9% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin barely moved (100% → 100%), so the change came from running costs — overheads are growing faster than sales.gpm_pctopm_pct

Profit exploded 118% — mostly from the tax bill

Mar 26 profit after tax was ₹24.0 Cr, up 118% year on year.net_profit

A caution: a meaningful slice of this jump came from income outside the core business — that is lower-quality profit and may not repeat.other_income

The profits are real — they turn into cash

Over the last 5 profitable years, the business reported ₹229 Cr of profit and collected ₹226 Cr of operating cash — about 99% conversion.operating_cash_flownet_profit

When cash tracks profit this closely, the earnings need no asterisk.

The cash cycle is tightening — money comes home faster

One rupee now takes about 109 days to go out the door as materials and come back as collected cash — down from 131 days the year before.cash_conversion_cycle

The biggest mover: customers paying faster (131 → 109 days).debtor_days

Building hard — new capacity is under construction

The productive asset base has gone from ₹11.0 Cr (FY18) to ₹211 Cr, with another ₹99.0 Cr of capacity under construction right now.fixed_assetscwip

Work-in-progress is 47% of the existing asset base — that is a serious bet on future demand. Capacity like this shows up in sales with a lag; it is tomorrow’s growth being paid for today.cwip

The build is bigger than the cash engine: investing outflows (₹578 Cr) exceeded operating cash (₹170 Cr) over the last 3 years — the difference comes from debt or shareholders.investing_cash_flowoperating_cash_flow

Debt is present but comfortable

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹39 — total borrowings have grown from ₹7.0 Cr to ₹222 Cr over the window.borrowings

Every ₹100 kept in the business earns ₹16 — decent, not special

Return on capital employed is 16.0% (a year ago: 25.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Promoter holding dropped in one step — an event, not a slow exit

Promoters hold 53.6% (down 7 points over 8 quarters). Foreign funds own 11.8%, domestic funds 1.7%.promoters_pctfiis_pctdiis_pct

The promoter move came in a single step (Dec 25) — promoters rarely buy on-market, so a jump like this is almost always an allotment, infusion or restructuring: a capital event, not a slow accumulation of conviction. Worth knowing which, before reading it as a signal.promoters_pct

A good business — the question is the price

The numbers are genuinely mixed, and the price already assumes the good news continues.

Best thing in the data: profit rising (₹11.0 Cr → ₹24.0 Cr).net_profit

Biggest worry: free cash flow falling (₹−69.0 Cr → ₹−305 Cr).operating_cash_flow

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data