Shares of this multibagger micro-cap stock hit the 5 percent upper circuit in Tuesday’s trading session after JV company received an order worth Rs 109.46 crores from South-Central Railway. In the past month, the company’s stock has gained 10 percent.
With a market capitalization of Rs 941.48 crores, the stocks of Kernex Microsystems (India) Limited started their trading session on Tuesday at Rs 609 hitting the 5 percent upper circuit, and are currently locked at the same price.
Such sharp movements in the stock prices were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that the Joint Venture (JV) company, viz, VRRC-KERNEX-CE-RVR, has received an order from South-Central Railway worth Rs 109.46 crores.
The company is a partner of the said JV and the share will be decided at a later stage. The above pertains to the comprehensive signalling and telecommunication works for providing an automatic block signalling system in the ‘Vemulapadu – Muddanuru’ section of the Guntakal division. The period for executing the contract is fixed to be 600 days.
During the recent financial quarters, the company’s prime business indicators, viz, operating revenues and after-tax profits, showed movements in opposing directions.
The former, on one end, moved up from Rs 96 lakhs during Q1FY23-24 to Rs 1.41 crores during Q2FY23-24, and, the latter, on the other end, magnified its losses from Rs 94 lakhs to Rs 4.53 crores.
Having a look at the basic leverage ratios of the company, the debt-to-equity ratio improved by portraying a reduction from 0.42 times during FY21-22 to 0.13 times during FY22-23. In addition, the current ratio of the company rose from 1.74 to 4.16 keeping the timeframe the same.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of 120 percent, viz, if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.20 lakhs.
Kernex Microsystems (India) Limited is a company based in India that is engaged in the business of manufacturing and selling safety systems and software services for Railways. The company designs, develops, and deploys ‘Train Collision Avoidance Systems’ in Indian Railways and installation of automatic as well as semi-automatic ‘Railway Gates’.
Written by Amit Madnani
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