Rail stock nearly doubles in one month on safety push

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Railway stock gains 85 per cent amid Rail’s Kawach push

By S Jha

New Delhi, August 26: Union Minister for Railways Ashwini Vaishnaw on day of unveiling of Union Budget had spoken of a big push for the rail safety. Vaishnaw had stated that the Union Budget has allocated ₹1.11 lakh crore for the railway safety.

The principal push in the rail safety has come for the anti-collision device, Kawach. Vaishnaw subsequently announced that the Railways has approved Kawach 4.0.

The Ministry of Railways has laid out an ambitious plan for the installation of Kawach in the rail networks. The Railways plans to scale up the Kawach coverage of rail routes and train substantially in the next few years.

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On the day of the unveiling of the Union Budget, the share of Kernex Microsystem was trading at ₹525. In the next month, the share price of Kernex Microsystem went past ₹1000.

The share of Kernex Microsystem on Monday closed at ₹990. During the day, it was locked in the upper circuit with gain of five per cent.

Kernex Microsystem along with a few more firms are said to be the principal beneficiary of the rail safety push. The rail officials claim that only few companies currently are working on Kawach.

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In just one month, the share price of Kernex Microsystem has risen by almost 85 per cent. The market capitalisation of Kernex Microsystem is now ₹1600 crores.

Screener.in says that describes the Kernex Microsystems Ltd was incorporated in 1991. “It manufactures and sells Safety Systems and Software services for Railways,” states Screener.in.

The face value of the share of Kernex Microsystems Ltd is ₹10. It posted a modest profit in the June quarter.

The Kernex Microsystems Ltd reported profit of ₹4.85 crores in the June quarter. Since 2021, the June quarter was the only occasion when Kernex Microsystems Ltd reported profit.

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The earning per share of Kernex Microsystems Ltd in the June quarter was ₹2.16. The rail company had negative earning per share during all quarters since June, 2021.

Almost 71 per cent shares of Kernex Microsystems Ltd are held by the public. The promoters of Kernex Microsystems Ltd own just 29 per cent of the shares.

Domestic and foreign institutional investors have zero stakes in the Kernex Microsystems Ltd.

Disclaimer: This article makes no recommendation for bur or sell of shares of any company.

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