Rs 3,136 Crore Order Book: Railway Kavach company receives order worth Rs 151.41 Crore from West Central Railway, Bhopal
DSIJ Intelligence-2 / 19 Aug 2025/ Categories: Mindshare, Trending
The stock price has given 77 per cent returns from its 52-week low of Rs 621.55.
Kernex Microsystems (India) Ltd., a Small-Cap manufacturer of safety systems and software services for Railways, hit the 5 per cent upper circuit after securing a new KAVACH order. The stock price also bounced from the 200-day EMA, signalling strong investor interest.
Kernex-KEC Consortium received a Letter of Acceptance (LOA) from West Central Railway, Bhopal, for the implementation of KAVACH, India’s indigenous Automatic Train Protection (ATP) system. The contract is valued at Rs 151.41 crore (including 18 per cent GST).
The project involves deploying KAVACH on a UHF backbone with Optical Fibre Cable (OFC) and route diversity. The scope covers sections including Itarsi (excluding) – Khandwa (excluding), Bina (excluding) – Ruthiyai, and other associated stretches under the Bhopal Division of West Central Railway. The contract is expected to be executed within 600 days from the LOA date.
DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, download the service details here.
With this order, Kernex has further strengthened its KAVACH portfolio. The company’s cumulative order book for KAVACH projects – including consortium and partner-led contracts – now stands at Rs 3,136.53 crore (inclusive of GST) from April 1, 2024, to date.
KAVACH, developed indigenously, is a modern ATP system aimed at improving railway safety and operational efficiency across the Indian Railways network.
Kernex Microsystems has been actively participating in Indian Railways’ modernisation projects. Investors have been closely tracking its Quarterly Results and contract wins, with hopes that the stock could potentially deliver multibagger returns if execution remains strong.
Advertisement:
Incorporated in 1991, Kernex Microsystems Ltd manufactures and sells Safety Systems and Software services for Railways. KML, an ISO 9001:2015 certified, 100 per cent Export Oriented Unit, provides turnkey electronic systems and technical support. It specialises in anti-collision devices, railway safety and signal systems, train collision avoidance systems, and automatic level crossing gates. The stock price has given 77 per cent returns from its 52-week low of Rs 621.55.
Disclaimer: The article is for informational purposes only and not investment advice.