KAVACH is a crucial technology that mitigates risk by providing safety and improving efficiency, this is where Kernex, which is into manufacturing and selling of Safety Systems and Software services for Railways.
Consequently, HBL Engineering, which is into manufacturing and services for different types of batteries, e-mobility, and other products, is in the forefront of initiatives and improvement in Railway Infrastructure. Both the companies can benefit from the government’s stance on Indian Railway upgradation on safety.
In this article, we will look into the Kernex and HBL Engineering, their financials, segments, and others. However, investors should do their research before investing.
Price Movement
Kernex Microsystems (India) Limited’s stock was trading at Rs. 790 per share down by 1.59 percent from the previous closing price of Rs. 802.80. The stock has delivered a return of around 26 percent in the past year and has outperformed the Nifty Index in the same period.
HBL Engineering Limited’s stock was trading at Rs. 458.90 per share up by 0.17 percent from the previous closing price of Rs. 458.10. The stock has delivered a negative return of around 27 percent in the past year and underperformed the Nifty Index in the same period.
Industry Outlook
Kavach, India’s Automatic Train Protection system, aims to improve railway safety by preventing collisions. As of early 2025, it has been installed on 1,465 route kilometers and 482 locomotives. The goal is to cover 44,000 km of track by 2029, significantly reducing accidents.
Revenue Segments
Kernex Microsystems recognizes their revenue from operations under Safety Systems for Railways, which is their sole segment as of Q3FY25.
HBL Engineering earns around 74.73 percent from the Industrial Batteries followed by 12.02 percent from Defence & Aviation Batteries, 9.85 percent from Electronics (Incl. Kavach) and the remaining 3.38 percent from Others for the December 2024 quarter.
Recent Order Received: Kernex Microsystems (India)
As the order book data is not available for Kernex Microsystems, we can look into the recent work order involving an order worth Rs. 325 crore from South Eastern Railways for Supply, Installation, Testing and commissioning of Kavach and another order worth ~Rs. 2,041 crore for installation of Kavach.
Order Book Status: HBL Engineering
The company has an order book of Rs. 1,178.75 crore as of 31st August 2024. It comprises TCAS or TMS, Nickel-Cadmium and Sintered Batteries, Submarine, Silver Zinc, and Lithium Batteries, Railway Signalling works, and defence electronics as per Care Ratings report dated 03rd October 2024. HBL stands 2nd in the industrial nickel batteries segment and 3rd in VRLA lead batteries segment in India.
Financial Performance
Kernex’s Q3FY25 results show revenue from operations of Rs. 36.81 crore which increased by 342.96 percent year on year, from Rs. 8.31 crore in Q3FY24. The company turned net profit to Rs. 7.13 crore in Q3FY25 from a net loss of Rs. 8.57 crore in Q3FY24.
HBL’s Q3FY25 results show revenue from operations of Rs. 451 crore which declined by 24.70 percent year on year, from Rs. 599 crore in Q3FY24. It’s net profit for Q3FY25 stood at Rs. 65 crore from a profit of Rs. 79 crore in Q3FY24.
About the company
Kernex Microsystems (India) Ltd, established in 1991, is an ISO 9001 certified company specializing in safety systems and software for railways, telecom, and defense. It offers embedded R&D services and electronics manufacturing solutions globally.
HBL Engineering Limited is a leading battery and power systems company based in Hyderabad, India. It specializes in manufacturing various battery types and offers solutions for sectors like aviation, railways, defense, and e-mobility.
Written by Santhosh S
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