Check Before You Invest : Knowledge Marine & Engineering Works Ltd

Snapshot

Q.1 Which industry/sub-sector does Knowledge Marine & Engineering Works Ltd belong to?

Knowledge Marine & Engineering Works Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ship Building segment.

Q.2 Is Knowledge Marine & Engineering Works Ltd a good quality company?

Knowledge Marine & Engineering Works Ltd is a good quality company, based on a consistently good 8-year financial track record.

Q.3 Is Knowledge Marine & Engineering Works Ltd undervalued or overvalued?

Knowledge Marine & Engineering Works Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Knowledge Marine & Engineering Works Ltd a good buy now?

Knowledge Marine & Engineering Works Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Knowledge Marine & Engineering Works Ltd?

Knowledge Marine & Engineering Works Ltd revenue growth is 7.1% for FY-2025, which is below its 5-year CAGR of 54.17%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Knowledge Marine & Engineering Works Ltd?

Knowledge Marine & Engineering Works Ltd Return on capital employed is 23.8% for FY-2025, which is below its 5-year historical median of 34.69%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Knowledge Marine & Engineering Works Ltd?

Knowledge Marine & Engineering Works Ltd Return on Asset is 13.29%, which is below its 5-year historical median of 19.08%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Knowledge Marine & Engineering Works Ltd?

Knowledge Marine & Engineering Works Ltd Return on equity is 19.85% for FY-2025, which is below its 5-year historical median of 38.22%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Knowledge Marine & Engineering Works Ltd?

Knowledge Marine & Engineering Works Ltd Cash conversion cycle is 22 days, above its 5-year historical median of 13 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.57	0.77
ROE	19.85	38.22
ROCE	23.8	34.69
Cash Conversion Cycle	22 days	13 days

Q.6 Gross Profit margin of Knowledge Marine & Engineering Works Ltd?

Knowledge Marine & Engineering Works Ltd Gross profit margin which is the profit after deduction of direct costs, is 37.4% for FY-2025, which is in line with its 5-year median of 37.4%, indicating stable margins.

Q.7 Operating Profit Margin of Knowledge Marine & Engineering Works Ltd?

Knowledge Marine & Engineering Works Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 38.17% for FY-2025, which is in line with its 5-year median of 38.17% indicating stable margins.

Q.8 Net Profit Margin of Knowledge Marine & Engineering Works Ltd?

Knowledge Marine & Engineering Works Ltd Net Profit Margin is 23.44% for FY-2025, is in line with with its 5-year median of 23.93%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	37.4	37.4
Operating Profit Margin	38.17	38.17
Net Profit Margin	23.44	23.93

Q.9 Debt to Equity ratio of Knowledge Marine & Engineering Works Ltd?

Knowledge Marine & Engineering Works Ltd Debt-to-Equity ratio is 0.48, which is lower with the industry average of 2.12, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Knowledge Marine & Engineering Works Ltd?

Knowledge Marine & Engineering Works Ltd Debt to cash flow from operations is 2.32, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Knowledge Marine & Engineering Works Ltd?

Promoters hold 53.63% of the Knowledge Marine & Engineering Works Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Knowledge Marine & Engineering Works Ltd vs industry peers?

Knowledge Marine & Engineering Works Ltd revenue CAGR is 54.17%, compared to the industry median CAGR of 19.16%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	7.1	19.2
Gross Profit Growth	40	40.4
Operating Profit Growth	39	42.1
Net Profit Growth	40	41.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.57	0.82
ROE	19.85	4.12
ROCE	23.8	7.58
Cash Conversion Cycle (days)	22.06	76

Valuation & price assessment

Q.1 Stock return of Knowledge Marine & Engineering Works Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 158.37% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	158.4%	58.3%	216.9%

Q.3 Valuation ratios of Knowledge Marine & Engineering Works Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	96.39	39.95	32.41
Price to Book	10.56	9.87	6.51
Price to Sales	27.02	10.59	4.99
EV to EBITDA	63.33	26.00	12.82

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