Turnaround Story: Railway Kavach Multibagger Stock Hit Upper Circuit After Reported Stellar Results In Q2FY25 & H1FY25

The stock gave multibagger returns of 163 per cent from its 52-week low, 900 per cent in 3 years and a whopping 4,100 per cent in 5 years.

On Monday, shares of Kernex Microsystems (India) Ltd hit a 5 per cent upper circuit to Rs 909.65 per share from its previous closing of Rs 866.35 per share. The stock’s 52-week high is Rs 1,011 while its 52-week low is Rs 333.55. At the closing bell, shares of the company were trading at Rs 876.10 per share, up 1.13 per cent with a spurt in volume by more than 2.55 times on BSE.

Kernex Microsystems (India) Ltd., established in 1991, is a leading provider of safety systems and software services for the railway industry. The company, an ISO 9001:2015 certified export-oriented unit, specializes in delivering turnkey electronic systems and technical support. Their product and service offerings encompass a wide range of solutions, including anti-collision devices, train collision avoidance systems, automatic level crossing gates, signaling systems, headway improvement technologies, and water management solutions. Kernex Microsystems leverages its expertise in wireless front-end, satellite communication, embedded systems, signal processing, network management, and software development to provide innovative and reliable solutions to the railway industry.

The company has a market cap of over Rs 1,400 crore. According to the shareholding of the company, the promoters own 29.14 per cent stake, FIIs own 0.49 per cent stake, DIIs own 0.04 per cent stake, the Government own 0.06 per cent stake and the rest of the stake is owned by the public i.e., 70.27 per cent.

In its Quarterly Results, the net sales increased by 2,828 per cent to Rs 41.22 crore in Q2FY25 compared to Q2FY24. The company reported a turnaround net profit of Rs 6.85 crore in Q2FY25 compared to a net loss of Rs 4.41 crore in Q2FY24, an increase of 255 per cent. In its half-yearly results, the net sales increased by 2,848 per cent to Rs 69.90 crore in H1FY25 compared to H1FY24. The company reported a turnaround net profit of Rs 10.47 crore in H1FY25 compared to a net loss of Rs 5.29 crore in H1FY24, an increase of 298 per cent.

The stock gave multibagger returns of 163 per cent from its 52-week low, 900 per cent in 3 years and a whopping 4,100 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.