Multibagger Stock: Shares of Kernex Microsystems India were locked in the 5% upper circuit for the fifth consecutive trading session on Thursday, December 12, reaching a fresh all-time high of ₹1,385 apiece. The stock’s cumulative five-day gain now stands at 21.5%.
The recent rally began after the company secured a significant order worth ₹2,041 crore on December 8 from Chittaranjan Locomotive Works, a unit of the Ministry of Railways, Government of India.
The order entails the supply, installation, testing, and commissioning of 2,500 onboard KAVACH equipment sets, aligned with ROSa Specification No. RDSO/SPN/196/2020, Version 4.0 or the latest. This project, seen as a vital step towards enhancing railway safety and modernisation, is expected to be completed within 12 months.
This latest order builds on the company’s earlier project in mid-October when it secured an order worth ₹4.35 crore for the supply, installation, testing, and commissioning of the Train Collision Avoidance System (KAVACH) for train sets.
KAVACH, also known as the Train Collision Avoidance System (TCAS) or Automatic Train Protection System (IRATPS), is an advanced safety solution designed to prevent train collisions and improve operational safety.
Kernex Microsystems is engaged in the manufacturing and sale of safety systems and anti-collision devices for railways, along with software services.
The company began its journey in railway safety systems in 1999, successfully developing and demonstrating a prototype of Anti-Collision Devices (ACDs) to the Konkan Railway Corporation Limited and members of the Railway Safety Board, according to the company’s website.
Stock advances 6,195% in 4 years
The company’s shares have soared by 250% in less than six months, continuing a robust upward trajectory. The stock has climbed from ₹397 per share at the beginning of July to its current trading price of ₹1,385 per share.
Over the past four years, the stock has delivered an extraordinary return of 6,195%, underscoring substantial value creation for its shareholders.
With the Government of India emphasising the modernisation of railways through large-scale infrastructure investments and enhanced safety measures, the company stands to gain from these opportunities. The government has prioritised transforming Indian Railways into a world-class entity, with a record capital expenditure (Capex) of ₹2,62,200 crore allocated for 2024-25.
The Gross Budgetary Support for Railways in the same period is set at ₹2,52,200 crore, reflecting a significant increase from ₹2,40,200 crore in 2023-24 and a remarkable jump from ₹28,174 crore in 2013-14. This enhanced allocation is driven by a strong focus on improving safety measures.
One of the pivotal safety measures is Kavach, an indigenously developed Automatic Train Protection (ATP) system. Kavach enhances operational safety by automatically applying brakes if the loco pilot fails to do so, ensuring secure train operations even under adverse weather conditions.
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