Heavy buying: Back-to-back upper circuit in this micro-cap multibagger stock; gains over 2,000 per cent!

Shares of the company have gained more than 35 per cent in the last six months.

Shares of Kernex Microsystems (India) Limited were locked in the upper circuit on Friday, gaining 5.00 per cent. The stock has gained about 35 per cent in the last six months.

The company has a strong order book position of Rs 563 crores. All the orders were received in FY23 and this achievement would result in an assured revenue stream for the company.

The company through its consortium with KEC, has also received multiple letters of acceptance from North Central Railway, during September 2022. The orders book accounts for over Rs 537 crore and is expected to be executed over the next 650 days.

The company has also received a Letter of Award from Integral Coach Factory (ICF), Chennai for Rs 26.74 crore for the supply, installation, and commissioning of a Train Collision Avoidance System (TCAS) for 39 units which was expected to be completed by 31st July 2023.

As reported by many analysts, it is expected that the government and the Indian railways are all set to float a tender to procure the train collision avoidance system, which is the KAVACH system. The tender is expected to be around Rs 350 crores. And Kernex Microsystems (India) Limited can be one of the companies to win the tender.

Kernex Microsystems (India) Limited has also delivered multibagger returns to its shareholders in the last three years. During this period, the company’s share price jumped from Rs 18.05 on August 14, 2020, to Rs 392.60 on August 11, 2023, an increase of about 2,000 per cent in three year holding period.

Kernex Microsystems (India) Ltd manufactures, installs, and maintains anti-collision devices, and conceptualizes, designs, and develops railway safety and signal systems.

The stock has shown tremendous growth, and investors should keep a close eye on this stock.

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