Kernex Microsystems Share Price: Hits 5% Upper Circuit After Securing New Railway Order

Market Performance

Kernex Microsystems' share price reached ₹855.55 on Wednesday, April 2, 2025, after hitting the second day's 5% upper circuit limit. This follows a substantial increase in value over the years. The stock has surged by 6,243% over the past five years despite a 45% pullback from its all-time high of ₹1,584 in December 2024. It remains 250% higher over two years and 471% over three years.

Recent Developments

Kernex Microsystems announced a new project win on Tuesday. The company, as part of a consortium, received a Letter of Acceptance from North Central Railways for an ₹85 crore Kavach project. The order includes the provision of the Kavach Train Collision Avoidance System, tower infrastructure, and 4X48 fiber optic cable on the Shuteshwar–Dholpur section.

This new contract follows a prior order in February 2025, when the company secured a ₹325.33 crore contract from South Eastern Railways to supply, install, test, and commission the same safety system.

Company Background

Kernex Microsystems manufactures safety systems and provides software services for the railway sector. The company began operations in the railway safety domain in 1999, introducing and demonstrating a prototype of Anti-Collision Devices (ACDs) to Konkan Railway Corporation Limited and Railway Safety Board officials.

The company's focus has been on the development of railway safety technologies, with an emphasis on the Kavach system—an Automatic Train Protection (ATP) technology introduced in India in 2020. Kavach prevents collisions by automatically applying brakes when human error is detected.

In December 2024, Kernex Microsystems was also awarded a significant ₹2,041 crore order by Chittaranjan Locomotive Works, a unit under the Ministry of Railways.

Financial Highlights

While the article does not provide detailed financials such as revenue or profits, it does highlight the following contract wins in recent months:

• ₹85 crore (April 2025) – Kavach project from North Central Railways
• ₹325.33 crore (February 2025) – Kavach order from South Eastern Railways
• ₹2,041 crore (December 2024) – Order from Chittaranjan Locomotive Works

Conclusion

Kernex Microsystems' share price has risen strongly, driven largely by multiple significant contract wins related to the Kavach railway safety system. The company has remained active in enhancing rail safety technologies and continues to secure large-scale government projects.