Upper Circuit Railway Stock: Anti-Collision Device Manufacturer Secures Rs 4.35 Crore Order for KAVACH System!

Rakesh Deshmukh
Upper Circuit Railway Stock: Anti-Collision Device Manufacturer Secures Rs 4.35 Crore Order for KAVACH System!

The company’s shares have delivered a multibagger return of over 2,700 per cent in the past 5 years.

This Small-Cap railway company that specializes in manufacturing and selling safety systems and software services for railways. The company focuses on anti-collision devices, railway safety, and signal systems, train collision avoidance systems, and automatic level-crossing gates. The company has bagged an order for its product.

Order Details

Rail Coach Factory, Kapurthala, has awarded the company an order valued at Rs 4.35 crore for the supply, installation, testing, and commissioning of the Train Collision Avoidance System (KAVACH) for their train set. The order is to be executed on or before August 30, 2025.

Share Performance

At the start of the day's trading session, the stock of Kernex Microsystems Ltd opened at Rs 750 per share, compared to the previous day's closing figure of Rs 750.95 per share on the BSE. Finally, the shares closed at Rs 788.45 per share. The stock has hit the upper circuit, reflecting strong demand in the market. The company's current market capitalization stands at Rs 1,321.40 crore, and the stock has generated an impressive multibagger return of over 2,700 per cent in the past 5 years.

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Financial Performance

As per the Quarterly Results, in Q1 FY25, Kernex Microsystems Ltd recorded a revenue of Rs 28.68 crore representing a gain of 2888 per cent YoY from Rs 0.96 crore. The operating profit for Q1 FY25 stood at Rs 4.85 crore with an operating profit margin of around 16.91 per cent. The net profit for Q1 FY25 was Rs 3.57 crore representing a gain of 480 per cent YoY compared to a loss of Rs 0.94 crore. Looking at the annual performance, the company generated a revenue of Rs 20 crore in FY24, compared to Rs 4 crore in FY23. The operating loss for FY24 was Rs 21 crore with a net loss of Rs 27 crore.

According to the shareholding pattern of Kernex Microsystems Ltd, promoters own a 29.14 per cent stake, while public investors hold 70.78 per cent. Government holds a 0.06 per cent stake in the company.

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

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