Knowledge Marine Share Price may Bullish up to Rs 1730 in next 7 days, see stock analysis
the share price of Knowledge Marine & Engineering Works Ltd is currently at ₹1,493.00, reflecting a decline of 1.18% from the previous day’s closing price of ₹1,510.95. This marks a significant moment for investors and market analysts as they assess the company’s performance and potential future actions.
Main Points
Knowledge Marine & Engineering Works Ltd, which specializes in dredging and marine services, has seen its share price fluctuate over the past few months. The stock reached a 52-week high of ₹1,774.95 and a low of ₹1,005.00. Despite the recent dip, the company has shown considerable growth over the years, with a staggering three-year return of 3,233.33%, far exceeding the Nifty Smallcap 100’s return of 84.96% during the same period.
The company’s financials indicate a mixed performance. For the year ending March 31, 2024, Knowledge Marine reported a revenue contraction of 17.84%, marking the first decline in revenue in three years. This downturn raises concerns among investors about the sustainability of the company’s growth trajectory.
On the positive side, the company has maintained a strong return on equity (ROE) of 25.8% and a return on capital employed (ROCE) of 24.0%, which are indicators of efficient management and profitability. However, the absence of dividends and a high price-to-earnings (P/E) ratio of around 41.51 suggest that the stock may be overvalued at its current price levels.
Recent reports indicate a shift in shareholder dynamics, with foreign institutional investors increasing their stake from 0.16% at the end of December 2023 to 1.2% by March 2024. This uptick in foreign investment could signal confidence in the company’s long-term prospects despite recent challenges.
Looking at the technical aspects, the stock has shown a slight recovery over the past week, with a gain of approximately 2.53%. Over the last three months, the share price has increased by 6.49%, indicating some resilience despite the recent downturn.
Analysts are closely monitoring key support and resistance levels. The immediate support level is seen at ₹1,490, while resistance is anticipated around ₹1,510. A breach of these levels could lead to further volatility in the stock price.
Market analysts are divided on the future price action of Knowledge Marine. Some predict that if the company can stabilize its revenue and address the recent contraction, the stock could rebound towards its previous highs. Conversely, continued revenue declines could push the stock lower, potentially testing the ₹1,000 mark again.
The upcoming Annual General Meeting (AGM) scheduled for September 19, 2024, could also play a crucial role in shaping investor sentiment. Any announcements regarding future business strategies or financial guidance could influence the stock’s performance in the near term.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
