Stock in Focus: Kernex Microsystems (India) Ltd, associated with the railway sector, has received a big order worth Rs 411.17 crore (including GST). This order has been placed by Banaras Locomotive Works (BLW), Varanasi.
Supply of 505 Kavach Loco Equipment
This contract is for supply, installation, testing and commissioning of 505 On Board Kavach Loco Equipment Units. The work will be carried out as per RDSO/SPN/196/2020, version 4.0 or its latest specifications.
This order must be completed within 12 months from the date of purchase order. The total contract value is Rs 411.17 crore, inclusive of GST.
Order for armor upgrade was received earlier also
Last year, Kernex Microsystems had said that it had received a Letter of Acceptance (LoA) from South Central Railway, Secunderabad to upgrade the armor protection system.
This order was worth Rs 21.03 crore (including GST). The Kernex VRRC joint venture is to upgrade the Automatic Train Protection (ATP) technology ‘Kavach’ from version 3.2 to version 4.0.
On which routes will the work be done?
The Railway Infrastructure Company will upgrade the route from Sadashivpet Road to Parbhani station. However, stations are not part of this project.
This work will cover Bidar and Parli Vaijnath route under South Central Railway.
Status of Kernex shares
Shares of Kernex Microsystems closed 3.05% higher at Rs 1,233.15 on Wednesday. The stock is up 12.93% in the last 1 month. It has given a return of 19.01% in 1 year. It has given multibagger returns of 4,783% in 5 years. The market cap of the company is Rs 2.08 thousand crore.
What is the business of Kernex?
Kernex Microsystems (India) Ltd is a railway safety and signaling technology company. It deals with supply, installation, testing and commissioning of on-board equipment of Automatic Train Protection (ATP) system for Railways. Especially the indigenous ‘Kavach’ security system.
The company works on train collision prevention technology, signaling solutions and safety upgrade projects of the rail network. Its business is mainly based on government railway orders.
IRCON Q3 Results: Government Railway Company declares profit of ₹ 100 crore, dividend
Disclaimer: The information provided here is being given for information only. It is important to mention here that investing in the market is subject to market risks. As an investor, always consult an expert before investing money. Moneycontrol never advises anyone to invest money here.