Kernex Microsystems Hits Upper Circuit as JV Clinches Rs 109.46 Crore Railway Order

2 Jan 2024 , 12:33 PM

Kernex Microsystems share price witnessed a 5% upper circuit lock on Tuesday, following a Rs 109.46 crore order secured by its joint venture (VRRC-KERNEX-CE-RVR JV) from South Central Railway.

The order is for the provision of an automatic block signaling system, and the JV will handle comprehensive signaling and telecommunication works in the Vemulapadu – Muddanuru section of Guntakal division.

Kernex Microsystems is a partner in the joint venture, and the specific share value will be determined later, according to the company’s exchange filing.

The company’s stock opened at an intraday high of Rs 609 on the BSE.

The South-Central Railway’s order execution timeline is expected to span 600 days, according to the company’s announcement.

Kernex Microsystems stands to benefit from the Indian Railways’ plan to implement Kavach across its 70,000-kilometer network, presenting an estimated Rs 35,000 crore opportunity for Kavach developers, including Kernex.

As of September 2023, the company reported a net loss of Rs 4.54 crore.

About Kernex Microsystems: Kernex Microsystems specializes in software development and the production of safety systems and anti-collision equipment for railways. The company initiated its work on railway safety systems in 1999, having successfully demonstrated an ACD prototype to relevant authorities.

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