Knowledge Marine (KMEW)

FairStock Score: 31/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• ROE of 31.98% and ROCE of 24.67% indicate exceptional capital allocation
• Sales growth of 56.24% and profit growth of 90.78% demonstrate strong momentum
• Piotroski F-Score of 7/9 implies solid financial health
• PEG ratio of 0.83 suggests growth is not yet fully overpriced
• Promoter holding of 53.63% aligns interests with minority shareholders

Concerns

• P/E of 61.22 and P/B of 23.89 leave a very thin margin of safety
• Zero dividend yield means investors rely solely on capital gains
• Stock price 52-week range of ₹825–₹2,807 shows extreme volatility
• Dredging is cyclical and dependent on government infrastructure spending

AI Analysis

I often say it's far better to buy a wonderful business at a fair price than a fair business at a wonderful price. Knowledge Marine catches my eye with a spectacular ROE of 31.98% and ROCE of 24.67%, which tell me management is compounding shareholder capital superbly. Sales are up 56.24% and profit a stunning 90.78%, so the momentum is real. The Piotroski F-Score of 7/9 supports a fundamentally sound balance sheet, and debt-to-equity of 0.60 is manageable for a capital-intensive dredging firm. Promoter holding of 53.63% aligns interests with public shareholders. Yet value is not simply about growth. At ₹1,716, the market cap is ₹3,905 Cr, while book value is just ₹71.83. That's a price-to-book of 23.89 and a P/E of 61.22. The company earns a high return on equity, but paying this much for future growth leaves no margin of safety. The PEG ratio of 0.83 suggests the growth rate justifies the multiple, but a zero dividend yield means all returns depend on capital appreciation. The 52-week range of ₹825 to ₹2,807 shows how violently this stock swings. The latest quarter had sales of ₹90 Cr and net profit of ₹33 Cr — a great margin, but one quarter does not make a cycle. Dredging is inherently cyclical and linked to government spending. I would not pretend to understand the order book, so I'd demand a meaningful discount to my estimate of intrinsic value. At 61 times earnings, this is a wonderful business selling at a price that leaves little room for error. Watch the growth story, but do not chase it blindly.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer