Kernex Microsystems witnessed a 5% surge in share price during Tuesday’s trade, propelled by its joint venture’s success in securing an order worth ₹109.46 crore from South Central Railway. The awarded contract encompasses the provision of an automatic block signalling system, making it a comprehensive signalling and telecommunication project. The company, a partner in the joint venture named VRRC-KERNEX-CE-RVR JV, clarified in an exchange filing that the share value will be determined at a later stage.
As of 11:03, the shares demonstrated a 4% uptick, trading at ₹604.90.
The company, in its filing, conveyed, “We would like to inform you that the South-Central Railway has awarded an Order of ₹109.465 crore to a Joint Venture of the Company i.e. VRRC-KERNEX-CE-RVR JV, for comprehensive signalling and telecommunication works for the provision of an automatic block signalling system in Vemulapadu – Muddanuru section of Guntakal division in South Central Railway.” The execution timeline for the order is expected to span 600 days.
Additionally, Kernex finds itself in a favorable position as the Indian Railways plans to implement Kavach across its extensive infrastructure. Covering a vast 70,000-kilometer network, the Indian Railways aims to integrate Kavach into all facets of its infrastructure. This initiative, with the potential to generate opportunities worth ₹35,000 crore, presents a substantial growth avenue for Kavach developers, including Kernex.
