The shares of the safety system manufacturer for railways hit 5 percent upper circuit of Rs 788.45 per share after the company bagged a prestigious order for Kavach System worth Rs 4.35 crore.
Kernex Microsystems (India) Ltd has a market capitalization of Rs 1,321.40 crore, the shares were trading at Rs 788.45 per share, increasing around 5 percent as compared to the previous closing price of Rs 750.95 apiece.
Reason for Rise:-
The shares of the company have seen such a bullish movement after Kernex Microsystems (India) Ltd bagged a prestigious order from Rail Coach Factory, Kapurthala for the Supply, Installation, Testing, and Commissioning of Train Collision Avoidance System (KAVACH) for their train set. This order is valued at Rs 4.35 crore.
Financial Growth:-
Analysis of the company’s financial performance, revenue magnified multifold times by 2,887 percent from Rs 0.96 crore in Q1FY24 to Rs 28.68 crore in Q1FY25, however during the same time frame, net profit zoomed by 480 percent from Rs 0.94 crore loss to Rs 3.57 crore profit.
Capacity and Services Offered:-
It has a production capacity of 100 Kavach units per month and can be scaled up to 250 units per month, as well as 10 Level Crossing Gates per month with a scale-up of up to 25 units per month. Kernex has received contracts to supply and install KAVACH systems from the Integral Coach Factory in Chennai.
Its railway safety solutions include the Train Collision Avoidance System Moving Blocks, the Train Protection and Warning System, the European Train Control System, the Chinese Train Control System, Positive Train Control, and several more.
International & Ongoing Project:-
The company’s ongoing projects include NCR-A and NCR-B in North Central Railways, Prayagraj Division, covering 408.75 RKM and 342.47 RKM, respectively. Other projects include TCAS for 241 km of SCR’s Bidar-Parbhani section, Kavach for 39 Vande Bharat trains, and ABS implementation on 74 km of SCR.
The company has completed the installation and commissioning of 260 gates for Egyptian Railways, with the final handover in progress. For Sri Lanka Railways, it is executing an order for 200 Bell and Light Level Crossing Protection Systems but aims to exit the project through dialogue.
Order Book:-
The company boasts a robust order book, including three TCAS/Kavach projects worth Rs. 561 crore and one non-TCAS project valued at Rs. 40 crore. Additionally, Integral Coach Factory awarded an extra Rs. 8.26 crore order for TCAS on April 23, 2024, and Rs. 5.77 crore on May 4, 2024.
Company profile:-
Kernex Microsystems (India) Limited manufactures and sells railway safety solutions as well as software services. The company has a track record of supplying professional electronic solutions that can withstand tough weather conditions.
Written by:- Abhishek Singh
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