Railway Kavach Company Bags New Order Worth Rs 325,33,00,000 From South Eastern Railway
The stock gave multibagger returns of 167 per cent from its 52-week low, 700 per cent in 3 years and a whopping 4,300 per cent in 5 years.
Kernex Microsystems (India) Ltd, as the lead member of the KERNEX-MRT CONSORTIUM, has received a Letter of Acceptance from South Eastern Railway for a significant domestic project involving the Supply, Installation, Testing, and Commissioning of Kavach, an automatic train protection system, on 688 Route Kilometers (RKM) of "GO & GO" routes within the Kharagpur and Chakradharpur divisions. This contract, valued at Rs. 325.33 Crores (including GST), is to be executed within 1000 days from the appointed date. The project encompasses associated works related to the Kavach implementation, aiming to enhance railway safety on these critical sections.
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.
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In its Quarterly Results, the net sales increased by 343 per cent to Rs 36.81 crore in Q3FY25 compared to Q3FY24. The company reported a turnaround net profit of Rs 7.13 crore in Q3FY25 compared to a net loss of Rs 8.57 crore in Q3FY24, an increase of 183 per cent. In its nine-month results, the net sales increased by 900 per cent to Rs 106.71 crore in 9MFY25 compared to 9MFY24. The company reported a turnaround net profit of Rs 17.52 crore in 9MFY25 compared to a net loss of Rs 14.04 crore in H1FY24, an increase of 225 per cent.
The company has a market cap of over Rs 1,400 crore. According to the shareholding of the company, the promoters own 29.08 per cent stake, FIIs own 1.16 per cent stake, DIIs own 0.73 per cent stake, the Government own 0.06 per cent stake and the rest of the stake is owned by the public i.e., 68.96 per cent. The stock gave multibagger returns of 167 per cent from its 52-week low, 700 per cent in 3 years and a whopping 4,300 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.