One of the small-cap railway stocks engaged in manufacturing and selling safety systems and software services for railways. The stock has hit 5 percent after receiving an order from Chittaranjan Locomotive Works for the supply of KAVACH equipment worth Rs. 2,041 crore
Stock Price Movement:
With a market capitalization of Rs. 1,910.83 crores, the shares of Kernex Microsystems (India) Limited’s stock surged by 5 percent, reaching an upper circuit of Rs. 1,140.15 per share on Friday, up from its previous closing price of Rs. 1,085.90 per share.
Over the past six months, the stock has provided impressive returns of more than 201.95 percent.
What Happened:
Kernex Microsystems (India) Limited has received an order from Chittaranjan Locomotive Works for the supply, installation, testing, and commissioning of 2,500 sets of onboard KAVACH equipment.
The project order is valued at Rs. 2,041.40 crores and is to be completed by December 5, 2025. This significant contract underscores the company’s expertise in providing advanced railway safety solutions and highlights its capability to deliver large-scale projects within the stipulated timeline.
Products and Services
Kernex Microsystems develops software solutions for global markets, specializing in safety systems like Anti-Collision Devices (ACDs) for railways. Their products include “Mimex,” “LearnX,” “MathX,” and “E-DOCS.”
The company has partnered with Konkan Railway to enhance railway safety through advanced technology and continues to innovate in the railway fields.
Future Prospects
Kernex Microsystems aims for operations in the USA and plans for expansion into markets in the Far East, Africa, and the Middle East. Kernex Microsystems aims to solidify its position as a global player in railway safety solutions.
The company’s commitment to innovation and collaboration with major railway authorities positions it well for future growth.
Also read….
Recent quarter results and ratios:
Kernex Microsystems (India) Limited’s revenue has increased from Rs. 1.41 crore in Q2 FY24 to Rs. 41.22 crore in Q2 FY25, which has grown by 2,823.40 percent. The net profit of Kernex Microsystems (India) Limited has turned its net loss into net profit, from Rs. -4.53 crore in Q2 FY24 to Rs. 6.82 crore in Q2 FY25.
In terms of return ratios, the company’s ROCE and ROE should be -21.1 percent and -28 percent, respectively. The debt-to-equity ratio of the company is to be 0.27x, which shows the company is almost debt-free. Kernex Microsystems (India) Limited’s current ratio is to be 2.09.
Shareholding pattern
In September 2024, Kernex Microsystems (India) Limited had a majority stake held by the promoters at 29.14 percent, foreign institutional investors at 0.49 percent, domestic institutional investors at 0.04 percent, the government of India at 0.06 percent, and the public at 70.26 percent.
Company Overview:
Kernex Microsystems (India) Limited was established in 1991 and is headquartered in Hyderabad. The company specializes in manufacturing safety systems and software for the railway industry.
The company offers a range of products like LxGuard, TrainSHIELD, and SAFELx, designed to operate in harsh environmental conditions. It also provides embedded R&D services, electronic product design, and manufacturing services, with a focus on turnkey development and quality control.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
