During Tuesday’s trading session, the shares of a company engaged in the manufacturing and sale of safety systems and software services for Indian railways hit a 5 percent upper circuit, after the company announced securing an order worth nearly Rs. 85 crores from North Central Railway
Price Movement
With a market capitalisation of Rs. 1,365.8 crores, the shares of Kernex Microsystems (India) Limited hit a 5 percent upper circuit at Rs. 814.95, as against its previous closing price of Rs. 776.15. The stock has delivered positive returns of over 42 percent in one year, while about 4.2 percent of negative returns in one month.
What’s the News
According to recent regulatory filings with the stock exchanges, North Central Railways, Prayagraj, has issued a Letter of Acceptance (LOA) to the KERNEX-KEC Consortium for a new project. The contract is valued at Rs. 85.14 crores, with a completion timeline of 500 days from the date of LOA. Kernex Microsystems is the lead partner in the consortium.
The project includes the implementation of KAVACH (Train Collision Avoidance System), along with the installation of towers and 4X48 fibre OFC as a backbone on the Bhuteshwar– Dholpur section of North Central Railway. The total value of all KAVACH contracts awarded so far (from April 2024 to date) amounts to Rs. 2,470.25 crores.
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Previous Orders
27th February: South Eastern Railways, Kolkata, awarded a contract to the KERNEX-MRT Consortium for the supply, installation, testing, and commissioning of KAVACH on GO & GO routes (688 RKM), covering sections of the Kharagpur and Chakradharpur divisions of South Eastern Railway. The contract value is Rs. 325.33 crores.
Financials & Order Book
Kernex Microsystems reported a significant growth in the revenue from operations, experiencing a rise of nearly 343.4 percent YoY, increasing from Rs. 8.3 crores in Q3 FY24 to Rs. 36.8 crores in Q3 FY25.
Similarly, the company turned its net loss of Rs. 8.6 crores to a profit of Rs. 7.2 crores, during the same period. As of Q3 FY25, Kernex Microsystems holds a total order book valued at Rs. 2,124.16 crores. This includes the company’s order book of Rs. 1,735.38 crores, while the Consortium/JV order book accounts for Rs. 388.78 crores.
About the Company
Kernex Microsystems (India) Limited is engaged in the business of manufacturing and sale of Safety Systems and Software services for Railways with a plant location at Hyderabad and a branch in Cairo, Egypt. The company is in the sectors of Railway Safety Systems Design & Development, Telecom & Defence, Turnkey Project Execution, Embedded & IOT, and Product design, development services.
Written by Shivani Singh
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