 "This smallcap has gained 103% within 2 months; zoomed over 300% in 6 months")
Kernex Microsystems hits new high: Shares of Kernex Microsystems hit a new high of Rs 1,385.80, as the scrip was locked in 5 per cent upper circuit on the BSE in Thursday’s intra-day trade amid heavy volumes on healthy outlook. The stock of Smallcap company is trading higher for the fifth straight day, surging 28 per cent during the period.
The up move in Kernex Microsystems stock price came after the company on December 6 announced that it has been awarded a contract worth Rs 2,041.04 crore by Chittaranjan Locomotive Works, Ministry of Railways, Government of India.
KAVACH, also known as Train Collision Avoidance System (TCAS) or Automatic Train Protection System (IRATPS), is a cutting-edge safety solution developed to prevent train collisions and enhance operational safety.
The average trading volumes on the counter jumped over four fold (4X) with a combined 1.02 million shares changing hands on the NSE and BSE till 09:42 AM.
Kernex Microsystems is engaged in the manufacture and sale of Safety Systems and Software services for Railways with plant location at Hyderabad and a branch in Cairo, Egypt.
Within two months, the market price of Kernex Microsystems has more than doubled or up 103 per cent from level of Rs 684.05 on October 28, 2024. It zoomed 315 per cent from its 52-week low of Rs 333.55 touched on June 12, 2024.
Meanwhile, for the July to September quarter (Q2FY25), Kernex Microsystems had reported robust earnings with its consolidated profit after tax stood at Rs 6.81 crore against Rs 3.57 crore in Q1FY25. The company had posted a loss of Rs 4.53 crore a year ago. Revenue from operations grew 43.7 per cent sequentially to Rs 412.19 crore from Rs 286.77 crore.
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The Indian Railways is undergoing a transformative phase, marked by significant investments and modernisation efforts to enhance its infrastructure, safety, and passenger experience. The record capital expenditure allocated during 2024-25 underscores the government's commitment to elevating Indian Railways to world-class standards. Key initiatives, such as the Amrit Bharat Station Scheme, modernisation of locomotives and coaching stock, and the implementation of advanced safety measures, are crucial steps towards achieving this vision.
With the Government of India's thrust now being in Modernizing Railways with large infrastructure spending and Rail safety, the Company is in a strong position to grab the opportunities that are expected to be available. After Budget announcements, Kernex is expected to maintain a healthy order book from the strategic sector and achieve rapid growth compared to previous years, Kernex Microsystems said in its FY24 annual report.