Knowledge Marine & Engineering Works shares hit a record high of ₹3,304.60, driven by a ₹279.33 crore Green Tug order from the Mumbai Port Authority. The company has also raised its FY27 revenue growth guidance to over 60%. While the order book remains strong at ₹1,400 crore, investors are closely weighing high valuations against the inherent volatility of the firm's project-based business model.
Knowledge Marine & Engineering Works (KMEW) shares touched a new intra-day record high of ₹3,304.60 on October 8, 2026. The stock has shown a strong upward trend, rallying 12 percent over the last four trading sessions. This performance marks a significant year-to-date gain of approximately 70 percent, standing out even as the broader market has seen a decline during the same period.
The recent stock movement follows the company's announcement on September 19, 2026, regarding a major new contract. The firm secured an order worth ₹279.33 crore from the Mumbai Port Authority for the construction and operation of a battery-powered tugboat. This project is part of a 15-year tenure, aligning with the government's Green Tug Transition Program, which aims to replace conventional diesel-powered vessels with cleaner alternatives across Indian ports.
Following a robust start to the current financial year—where the company reported a 138 percent year-on-year revenue increase in the first quarter—management has upgraded its FY27 revenue growth guidance to over 60 percent, up from the previous range of 30-40 percent. The company's confirmed unexecuted order book stood at approximately ₹1,400 crore as of March 31, 2026, providing a clear path for revenue over the medium term.
However, investors often look beyond top-line numbers to understand profit quality. While the company reported an exceptionally high EBITDA margin of 64 percent in the first quarter of FY27, management has clarified that this figure was a result of specific project milestones. For future planning, the company maintains a more sustainable long-term operating margin target of 35-40 percent. Understanding this distinction is important, as reliance on one-off project execution can make quarterly results appear volatile.
From a valuation perspective, the stock is trading at a significant premium, with the share price at approximately 13.8 times its book value. While the company's specialized fleet and participation in national initiatives like the Sagarmala Project offer structural growth opportunities, the business remains sensitive to the timing of new contract wins and the successful execution of capital-intensive projects. The firm also recently received shareholder approval for a sub-division of equity shares during its 11th annual general meeting held in late September 2026.
Moving forward, the primary monitorables for investors will be the steady conversion of the current ₹1,400 crore order book into revenue and the company's ability to maintain its target margin range during larger, more complex project executions.