2,500 per cent returns: This micro-cap company bags new order worth Rs 109,46,50,000 from South Central Railway; scrip hit upper circuit!

The stock gave multibagger returns of 120 per cent in just 1 year, 1,980 per cent in 3 years and a whopping 2,500 per cent in 5 years.

Kernex Microsystems (India) Ltd informed that the company has been awarded an order of Rs 109,46,50,000 in a joint venture of the company i.e. VRRC-KERNEX-CE-RVR JV, for comprehensive signalling and telecommunication works for the provision of automatic block signalling system in Vemulapadu - Muddanuru section of Guntakal division. The order is received from South Central Railway and will be completed within 600 days.

Today, shares of Kernex Microsystems (India) Ltd hit a 5 per cent upper circuit to Rs 609 per share from its previous closing of Rs 580 per share. At the closing bell, shares of the company were trading in the green, up 4.72 per cent to Rs 607.40 per share with a spurt in volume by more than 16.49 times on BSE.

Kernex Microsystems (India) Ltd manufactures, installs, and maintains anti-collision devices, and conceptualises, designs, and develops railway safety and signal systems. The company has a market cap of Rs 940 crore. According to the shareholding of the company, the promoters own 31.6 per cent stake, FIIs own 0.03 per cent stake, the Government own 0.07 per cent stake and the rest of the stake is owned by the public i.e., 68.3 per cent.

In its Quarterly Results (Q2FY24), the company reported net sales of Rs 1.41 crore and a net loss of Rs 4.53 crore and in its annual results (FY23), the company reported net sales of Rs 4 crore and a net loss of Rs 20 crore.

The stock gave multibagger returns of 120 per cent in just 1 year, 1,980 per cent in 3 years and a whopping 2,500 per cent in 5 years. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.