Shares of Kernex Microsystems India, a prominent player in the development of safety systems and software services for the railway sector, have soared to new heights. On Wednesday, April 2, the stock hit the 5% upper circuit limit for the second consecutive day, reaching ₹855.55 per share. This surge follows the company’s recent announcement of securing a substantial Kavach order from North Central Railways, signaling a promising trajectory for their business.

Major Order Secured

In an official exchange filing on Tuesday, Kernex Microsystems revealed that it is part of a consortium awarded a significant project worth ₹85 crore for the installation of the Kavach (Train Collision Avoidance System). The project entails the provision of critical safety infrastructure including a 4X48 fiber optic cable backbone on the Shuteshwar (Incl.)–Dholpur (Incl.) section of the railway line.

• Key Details of the Order:
  • Consortium: KERNEX-KEC
  • Project: Kavach system implementation
  • Value: ₹85 crore
  • Tender No: NCR-SnTEPCKAVACHBTSR-DHO

This latest contract builds on Kernex’s strong track record, following a previous order in late February valued at ₹325.33 crore for the supply, installation, and testing of the Kavach system for South Eastern Railways.

Rising Demand for Railway Safety Solutions

The Indian government’s emphasis on railway safety has propelled the demand for advanced systems like Kavach, which is designed to prevent collisions and enhance overall operational safety. This innovative safety solution, launched in 2020, automatically applies brakes when a locomotive pilot fails to respond in time.

Notably, Kernex Microsystems secured a landmark order worth ₹2,041 crore from Chittaranjan Locomotive Works in December, further cementing its position as a leader in railway safety technologies.

Stock Performance Insights

Although the stock experienced some profit booking after reaching a record high of ₹1,584 in December, it has regained momentum this month. Currently, despite a 45% decline from its peak, it still boasts impressive returns:

• 250% increase over the past two years
• 471% increase over the last three years
• 6,243% increase over the past five years

From February 2021 to December 2024, Kernex’s stock price skyrocketed from ₹29 to ₹1,584, providing shareholders with an astonishing return of 5,362%.

About Kernex Microsystems

Founded in 1999, Kernex Microsystems is dedicated to manufacturing advanced safety systems and anti-collision devices for the railway sector. The company has made significant strides in developing cutting-edge technology, having previously showcased prototypes of their Anti-Collision Devices to key stakeholders in the railway industry.

With a commitment to enhancing railway safety through innovative solutions, Kernex Microsystems continues to position itself as a vital contributor to India’s railway infrastructure development.

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