The Kavach system is an advanced train protection system developed by Indian Railways. It is designed to enhance railway safety by preventing collisions, ensuring train speed control, and reducing human errors.
Kavach system is India’s indigenous solution to improve the safety and efficiency of its extensive railway network, aligning with the country’s modernization goals for its transportation infrastructure. The Indian Railways aims to implement KAVACH across its extensive network, focusing on ensuring safety and enhancing operational efficiency as a top priority.
According to recent reports, Indian Railways has accelerated the adoption of the KAVACH Automatic Train Protection (ATP) system, planning to cover 10,000 km of its high-density and busy rail networks through a Rs. 5,000 crore mega tender.
Listed below are some of the stocks engaged in developing and deploying Kavach Systems over the Rail Infrastructure in India and overseas.
Kaynes Technology Limited
Kaynes Technologies India Limited is an end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturer. It has a strong customer base with major players like Hitachi, Siemens, Tonbo Imaging, and many more. As of Q1FY25, it has a strong order book of Rs. 5,038 Crores.
With a market capitalization of Rs.32,322 Crores, the shares of Kaynes Technology Limited closed at Rs. 5,049.55 per equity share, down 3.4 percent from its previous day’s close price of Rs. 5,227.45.
Recently Kaynes Holding Pte. Ltd a wholly-owned subsidiary of Kaynes Technology India Limited has executed a joint venture agreement with Sensonic GmbH and other existing shareholders of Sensonic Austria, for the proposed subscription of shares and acquisition of a 54 percent stake by Kaynes Singapore in Sensonic Austria, to expand its portfolio catering to railway sector.
Sensonic Austria is engaged in the development, manufacture, sale, and operation of Distributed Acoustic Sensing (“DAS”) for the rail industry and is in the business of providing information-as-a-service (IAAS) solutions for railway monitoring applications.
Distributed Acoustic Sensing(DAS) and information-as-a-service (IAAS) are used in railway systems for Track Monitoring, Safety & Security, Asset Protection, Operational Efficiency, and others.
Railtel Corporation of India
Railtel Corporation of India Limited is a Miniratna PSE engaged in providing neutral telecom infrastructure throughout India. It provides a range of telecom services like virtual private networks, internet leased in line, etc, and other project work services like national optic fiber network and other specific telecom and IT services.
With a market capitalization of Rs. 13,850 Crores, the shares of Railtel Corporation of India Limited closed at Rs. 431.55 per equity share, down 2.6 percent from its previous day’s close price of Rs. 443.10.
As of Q1FY25, it has a strong order book of Rs. 4,682 Crores, of which 75 percent of the orders were received through tenders, Government Nomination 22.4 percent, and Private 1.9 percent.
Railtel Corporation of India Limited has signed a memorandum of understanding (MoU) with Quadrant Future Tek Limited to implement KAVACH systems not only for Indian Railways but also for international railway networks.
Kernex Microsystems
Kernex Microsystems Limited is engaged in the business of manufacturing and selling Safety Systems, Software services, and other services for sectors like Railways, telecom, defence, water management, and many others.
With a market capitalization of Rs. at 1,234.75 Crores, the shares of Kernex Microsystems (India) Limited closed at Rs. 736.75 per equity share, down 1.15 percent from its previous day’s close price of Rs. 745.35.
It has a production capacity of 100 Kavach Units/Month and can scale up to 250 Units/Month, 10 Level Crossing Gates/Month with a scale-up of upto 25 Units/Month. Kernex has recently had contracts to supply and install KAVACH units from the Integral Coach Factory in Chennai.
Its Railway safety systems include the Train Collision Avoidance System Moving Blocks, Train Protection & Warning System, the European Train Control System, the Chinese Train Control System, Positive Train Control, and many more.
HBL Power Systems
HBL Power Systems is engaged in the business of design, development, manufacturing, and servicing different types of batteries, e-mobility, and other products. Its business segments include industrial batteries, electronics, defense, and aviation batteries.
With a market capitalization of Rs. 17,260 Crores, the shares of HBL Power Systems Limited closed at Rs. 622.70 per equity share, down 2.84 percent from its previous day’s close price of Rs. 640.90.
The company’s products have applications in telecom towers, rail & metro coaches, torpedoes, missiles, aircraft, submarines, train management systems, grenades, and many More.
HBL Power Systems Limited’s flagship products for the railway sectors inlcude, TCAS (Train Collison Avoidance System) for safety and TMS (Train Management System) for efficient track utilization.
HBL Power Systems Limited is one of the primary manufacturers of the KAVACH system, and has been involved in several projects with Indian Railways, including significant contracts for deploying the system across railway tracks and locomotives.
Written by: Bharath K.S
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