Kernex Microsystems, a manufacturer of safety systems for Indian Railways, is expected to attract investors’ interest in Thursday’s session, February 12, after the company secured a significant order.
In an exchange filing after-market hour today, the company informed that it has secured an order from Banaras Locomotive Works for the supply, installation, testing, and commissioning of 505 on-board KAVACH Loco Equipment units, worth ₹411.17 crore.
“…we are pleased to inform you that Banaras Locomotive Works, Varanasi (hereinafter referred to as ‘BLW’) has awarded an order valued at ₹411.17 crore (incl. GST) to the Company for the supply, installation, testing, and commissioning of 505 nos. of On-board KAVACH Loco Equipment as per RDSO Specification No. RDSO/SPN/196/2020, Version 4.0 or the latest,” the company said in its stock exchange filing.
Further, the company stated that the execution period for the contract is 12 months from the date of the purchase order.
This is the second major order for the company, as in mid-January it bagged a ₹2,466 crore order from Chittaranjan Locomotive Works. That order is also for the supply, installation, testing, and commissioning of 3,024 sets of on-board KAVACH Loco Equipment.
Both these orders have boosted the company’s revenue outlook and are also higher than its current market capitalization of ₹2,072 crore as of today. Meanwhile, the company is scheduled to announce its December quarter performance tomorrow.
Kernex Microsystems share price trend
Kernex Microsystems' share price has remained volatile in recent months after a sustained rally that placed it among the biggest wealth creators. So far this year, the shares are up just 1.35%.
Between 2020 and 2024, the stock witnessed a strong bull run, closing each of those years in positive territory and delivering multibagger returns in four of them. The biggest annual gain came in 2021, when the stock surged 326%, followed by a 133% rise in 2024.
Cumulatively, the stock has generated a massive return of 300% over the last three years and an exceptional 4,720% over the past five-year period.
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