| Market Cap | ₹2,538.67 CrMid-range Performer |
|---|---|
| Revenue TTM | ₹258.71 CrOperating Revenue |
| ROE Annual | 31.81%Efficiency Metric |
| Order from | Chittaranjan Locomotive Works (CLW) |
| Execution period | 12 months from the date of contract |
| Deal value | ₹475.21 Cr |
| Share of market cap | 18.7% |
| Share of annual revenue | 183.7% |
Key highlights
- Order valued at ₹475.21 Crores for Supply, Installation, Testing, and Commissioning
- Client is Chittaranjan Locomotive Works (CLW) based in Barddhaman
- Project execution timeline is 12 months from the date of contract
- Equipment adheres to RDSO Specification No. RDSO/SPN/196/2020, Version 4.0
- Contract strengthens Kernex's revenue visibility in the transport related services sector
Project Scope and Timeline
Chittaranjan Locomotive Works (CLW) has awarded a contract worth ₹475.21 Crores to Kernex Microsystems for the comprehensive Supply, Installation, Testing, and Commissioning of On-board KAVACH loco equipment. The scope of work follows the Research Designs and Standards Organisation (RDSO) Specification No. RDSO/SPN/196/2020, Version 4.0 or the latest iterations.
This mandate must be executed within a strict 12-month window from the contract date, representing a major workload addition to the company's existing railway safety portfolio. The project is critical for the national rollout of indigenous safety systems.
Client Profile
Chittaranjan Locomotive Works (CLW) is a premier electric locomotive manufacturer under the Ministry of Railways, Government of India. Located in Chittaranjan, West Bengal, it is one of the largest locomotive producers in the world. CLW plays a critical role in the Indian Railways' modernization drive, specifically in the transition to indigenous safety systems like KAVACH.
Partnering with CLW underscores Kernex's technical competency and its ability to meet the stringent quality standards required by the national carrier's primary manufacturing units, further solidifying its presence in the railway equipment manufacturing ecosystem.
Strategic Business Impact
This strategic order significantly bolsters Kernex Microsystems' revenue pipeline, providing substantial visibility over the next fiscal year. By securing this contract, the company reinforces its market standing in the high-growth railway safety sector. The implementation of KAVACH, India's Automatic Train Protection (ATP) system, is a national priority aimed at achieving zero accidents on the rail network.
For Kernex, this large-scale deployment serves as a platform to scale its operational capabilities and demonstrate reliability in high-stakes safety-critical applications, potentially opening doors for more expansive government tenders in the future.
Financial Context and Performance
Kernex has demonstrated exceptional financial growth, with annual operating revenue surging by over 800% to ₹189.77 Crores in the previous fiscal year. The company's Trailing Twelve Months (TTM) revenue stands at ₹258.71 Crores, while net profit for the same period reached ₹52.67 Crores. With a high Return on Equity (ROE) of 31.81% and a Piotroski Score of 6, the firm maintains a healthy financial profile.
This new ₹475.21 crore order is nearly double the company's TTM revenue, suggesting a significant phase of expansion and operational scaling in the coming four quarters.
| Share price | ₹1510.9 |
|---|---|
| Market capitalisation | ₹2,538.67 Cr |
| Revenue (annual) | ₹189.77 Cr |
| Net profit (annual) | ₹50.24 Cr |
| Revenue (latest quarter) | ₹72.60 Cr+54.08% vs previous quarter |
| Net profit (latest quarter) | ₹6.04 Cr-8.11% vs previous quarter |
| P/E (TTM) | 48.2×Sector 36.46× |
| Promoter holding | 28.85%-0.05% QoQ |
| FII holding | 0.3%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Kernex Microsystems (India) Ltd announcing the receipt of a new order from Chittaranjan Locomotive Works. Market figures from a third-party data provider.
