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Kernex Microsystems shares rise over 2% after bagging Rs 151 crore KAVACH order from West Central Railway
By Aditya Bhagchandani Published on August 19, 2025, 10:44 IST
Shares of Kernex Microsystems (India) Ltd gained over 2% in Monday's trade after the company announced a fresh order win for the Indian Railways' indigenous KAVACH Automatic Train Protection (ATP) system.
At 10:43 am, the stock was trading at ₹1,076 apiece on the NSE, up 2.31% (₹24.30) from the previous close of ₹1,051.70. During the session, the stock touched a high of ₹1,079.70 and a low of ₹999.20. Kernex currently commands a market capitalisation of ₹18.10 billion and has delivered sharp gains from its 52-week low of ₹621.55, though still off its high of ₹1,580.
The company, through its Kernex–KEC Consortium, secured an order worth ₹151.41 crore (including GST) from West Central Railway, Bhopal Division. The scope of work involves deployment of the KAVACH ATP system on the UHF backbone along with optical fibre cable (OFC) and route diversity. The project will be completed in 600 days across sections including Itarsi–Khandwa and Bina–Ruthiyai .
With this contract, Kernex's cumulative KAVACH order book since April 2024 has risen to ₹3,136.53 crore, underscoring strong momentum in the rail safety modernisation drive.
Kernex, a niche player in railway safety and signalling solutions, continues to benefit from the government's aggressive push towards rail safety. Analysts say the company's expanding execution pipeline could further support stock performance, though valuations remain on the higher side with a P/E ratio of 36.03.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
