Kernex Microsystems shares surge after winning ₹475 crore order

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Shares of Kernex Microsystems (India) Ltd. gained on Wednesday, May 27, after the company said it has won a contract worth ₹475.21 crore from Chittaranjan Locomotive Works.

The order is for the supply, installation, testing and commissioning of on-board Kavach loco equipment, the company said in an exchange filing.

The same is to be completed in 12 months from the date of contract, Kernex Microsystems added.

Last month, the company entered a joint venture with Bharat Heavy Engineering Ltd. (BHEL) to develop advanced signaling solutions. These include a moving block system integrated with automatic train supervision (ATS) and automatic train operation (ATO) on the Kavach platform, along with centralized traffic control (CTC).

Kernex will have a 51% stake in the JV while BHEL will own the remaining 49%. The shareholding is subject to change based on the scope of the project.

Shares of Kernex Microsystems gained 8.1% to hit an intraday high of ₹1,607.1 apiece on Wednesday. The stock was trading 1.8% up at ₹1,513.2 apiece at 1.55pm. It has gained 13.1% in the past month and 25.2% this year, so far.

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