Railway Kavach Company Receives Order of Rs 2,465.71 Crore; More Than Its Current Market Cap

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Railway Kavach Company Receives Order of Rs 2,465.71 Crore; More Than Its Current Market Cap

The stock has given multibagger returns of over 100 per cent from its 52-week low of Rs 625.55 per share and a whopping 4,160 per cent in 5 years. 

Kernex Microsystems (India) Limited has achieved a major milestone in the Railway safety sector by securing a massive domestic order from Chittaranjan Locomotive Works (CLW) valued at Rs 2,465.71 crore. This contract involves the supply, installation, testing, and commissioning of 3,024 sets of On-board KAVACH Loco Equipment, strictly adhering to the RDSO Specification No. RDSO/SPN/196/2020, Version 4.0 or latest. Remarkably, the total value of this single order exceeds the company’s current market capitalisation of Rs 2,105 crore, representing a transformative moment for the firm's financial trajectory and cementing its leadership in the specialised niche of Indian railway protection systems.

The strategic nature of this project is emphasised by a strict execution timeline, with the company expected to complete the entire scope of work within 12 months from the date of the purchase order. This domestic contract not only significantly enhances Kernex’s revenue visibility for the upcoming fiscal year but also reinforces its role as a key contributor to India's mission of automating rail safety through KAVACH technology. By successfully securing such a high-value tender, Kernex has demonstrated its technical capacity and operational readiness to deliver critical safety infrastructure at scale, further strengthening its market position against competitors in the infrastructure and engineering domains.

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About the Company

Kernex Microsystems (India) Ltd, established in 1991, is a leading provider of safety systems and software services for the railway industry. The company, an ISO 9001:2015 certified export-oriented unit, specialises in delivering turnkey electronic systems and technical support. Their product and service offerings encompass a wide range of solutions, including anti-collision devices, train collision avoidance systems, automatic level crossing gates, signalling systems, headway improvement technologies, and water management solutions. Kernex Microsystems leverages its expertise in wireless front-end, satellite communication, embedded systems, signal processing, network management, and software development to provide innovative and reliable solutions to the railway industry.

The company has a market cap of Rs 2,105 crore and its Order Book as of October 14, 2025, stands at Rs 3,349.95 crore. According to the shareholding of the company, the promoters own 28.97 per cent stake, FIIs own 0.54 per cent stake, DIIs own 0.39 per cent stake, the Government own 0.06 per cent stake and the rest of the stake is owned by the public i.e., 70.04 per cent. The stock has given multibagger returns of over 100 per cent from its 52-week low of Rs 625.55 per share and a whopping 4,160 per cent in 5 years. 

Disclaimer: The article is for informational purposes only and not investment advice.