In a remarkable turn of events, Kernex Microsystems Ltd has emerged as a multibagger stock in the railway sector, delivering an astounding 200% return in just 6 months. The company’s growth trajectory has been fueled by securing a massive contract worth Rs 2,041.40 crore from Chittaranjan Locomotive Works for the supply, installation, testing, and commissioning of 2,500 sets of KAVACH onboard anti-collision devices.
Massive Growth Potential in Railway Stock
The Indian government’s focus on railway modernization and safety has opened doors for companies like Kernex Microsystems. The newly bagged order is set to be completed by December 2025, further bolstering the company’s revenue streams.
The stock, which opened at Rs 1,125 in today’s trading session, is currently trading at Rs 1,140.15 per share on the BSE, hitting the upper circuit due to strong investor demand. With a current market capitalization of Rs 1,910.83 crore, Kernex Microsystems has demonstrated exponential growth, delivering a 5,150% return over the past 5 years.
Strong Financial Turnaround
The company’s Q2 FY25 financial performance reflects its solid growth trajectory:
Revenue: Rs 41.22 crore, a staggering 2,823% YoY increase from Rs 1.41 crore.
Operating Profit: Rs 10.25 crore, with an operating profit margin of 24.87%.
Net Profit: Rs 6.82 crore, compared to a loss of Rs 4.53 crore in Q2 FY24.
On an annual basis, Kernex Microsystems reported a revenue of Rs 20 crore for FY24, up from Rs 4 crore in FY23, marking a significant recovery despite past losses.
Institutional and Promoter Interest Boosts Investor Confidence
The company’s shareholding pattern reveals:
- Promoters: 29.14% stake.
- Public Investors: 70.26% stake.
- FIIs and DIIs: Recently acquired stakes of 0.49% and 0.04%, respectively.
This increased interest from foreign institutional investors (FIIs) and domestic institutional investors (DIIs) underscores Kernex Microsystems’ potential to capitalize on India’s booming railway infrastructure projects.
Disclaimer -- This article does not provide any recommendation, investors are requested to consult there financial advisor before investment