Kernex Microsystems Secures ₹325 Crore Kavach Safety System Contract from South Eastern Railway

Kernex Microsystems (India) Ltd announced on Thursday (February 27) that South Eastern Railway has issued a Letter of Acceptance (LoA) to the KERNEX-MRT consortium for the supply, installation, testing, and commissioning of the Kavach safety system on “GO & GO” routes spanning 688 Route Kilometer (RKM) in the Kharagpur and Chakradharpur divisions.

In a regulatory filing, Kernex Microsystems stated, “We would like to inform you that the ‘South Eastern Railways, Kolkata’ has issued a Letter of Acceptance (LoA) to KERNEX-MRT CONSORTIUM for the project viz, Supply, Installation, Testing & Commissioning of Kavach on GO & GO routes (688 RKM), including associated works on sections of Kharagpur & Chakradharpur divisions of South Eastern Railway.”

Contract Details and Execution Timeline

The contract is valued at ₹325.33 crore, inclusive of GST, and has a completion timeline of 1,000 days from the appointed date. Kernex Microsystems is the lead member of the consortium responsible for executing the project.

Kavach: Enhancing Railway Safety

Kavach is an advanced Train Collision Avoidance System (TCAS) designed to significantly enhance railway safety by preventing incidents such as:

• Signal Passing at Danger (SPAD)
• Over-speeding
• Train collisions

By deploying Kavach, Indian Railways aims to strengthen safety measures across key railway corridors, reducing the risk of accidents and improving operational efficiency.

Stock Performance 

On February 28, 2025, Kernex Microsystems share price traded 2.28% higher at ₹872 at 9:34 AM (IST). Kernex Microsystems’s share price reached a 52-week high of ₹1,584 and a 52-week low of ₹333.55. As per BSE, the total traded volume for the stock stood at 6403 shares with a turnover of ₹56.47 lakhs.

At the current price, Kernex Microsystems shares are trading at a price-to-earnings (P/E) ratio of 215.83x, based on its trailing 12-month earnings per share (EPS) of ₹3.96, and a price-to-book (P/B) ratio of 10.77, according to exchange data.

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