Kernex Microsystems
Kernex Microsystems
Information TechnologyKey Fundamentals
MicrocapIT Enabled ServicesInformation TechnologyTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
3- Company has delivered good profit growth of 116% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 26.1%
- Company's median sales growth is 15.8% of last 10 years
Weaknesses
4- Stock is trading at 11.7 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Promoter holding is low: 28.7%
- Company has high debtors of 268 days.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 69d agoKernex Microsystems is a small-cap company (market cap ₹4,074 Cr) in the services sector that has delivered exceptional recent growth with TTM sales up 127% and 5-year profit CAGR of 116%, but trades at elevated valuations of 45.3x PE and 16.1x book value with low promoter holding of 28.8% and zero dividend payout.
- Exceptional 5-year compounded profit growth of 116% CAGR indicates strong earnings momentum
- TTM sales growth of 127% shows robust revenue acceleration in the most recent period
- 3-year compounded sales growth of 374% reflects a significant scale-up in business operations
- Last year ROE of 44% demonstrates highly efficient capital utilization
- 3-year ROE of 26% shows sustained ability to generate returns well above cost of equity
- Stock has delivered 96% CAGR over 5 years, reflecting sustained investor confidence in growth trajectory
- Company is expected to deliver a good upcoming quarter based on order pipeline visibility
- 10-year median sales growth of 15.8% indicates long-term structural demand for the company's offerings
- Stock trades at 16.1x price-to-book value, significantly above typical small-cap peers, leaving limited margin of safety
- Promoter holding at only 28.8% is notably low, raising concerns about alignment and potential vulnerability to hostile actions
- Debtor days at 268 days signals severe working capital stress and potential collection risk
- PE ratio of 45.3x demands continued high growth execution to justify current valuation
- Zero dividend yield despite repeated profitability suggests either reinvestment needs or cash flow constraints from high receivables
- 10-year ROE of only 1% indicates the current profitability phase is relatively recent and historically inconsistent
- 10-year profit CAGR of 22% versus 5-year CAGR of 116% shows earnings were negligible for much of the prior decade
- 5-year sales CAGR of 88% drops sharply from the 3-year 374% figure, suggesting the growth base was very small and sustainability is uncertain
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 69d ago- Kavach 4.0 launched on 207 KM Jul 2
Kernex successfully deployed Kavach Version 4.0 on the 207 KM Tundla-Panki Dham section of North Central Railway, reinforcing its role in India's indigenous train collision avoidance technology expansion.
- Strong FY26 net profit ₹8,063 lakh Jun 29
Kernex reported a net profit of ₹8,062.52 lakh for FY26, disclosed alongside a postal ballot seeking approval for increased borrowing powers and managerial remuneration.
- 1,200 ESOP shares listed Jul 6
1,200 equity shares allotted under the Employee Stock Option Scheme 2023 were listed on BSE and NSE on July 7, 2026, with face value of Rs. 10 each.
- Postal ballot for borrowing powers Jun 29
Kernex called a postal ballot seeking shareholder approval to increase borrowing powers and revise managerial remuneration.
TL;DR: Kernex is executing well on its core Kavach railway safety mandate with the Version 4.0 deployment on a significant 207 KM stretch, and FY26 profitability looks healthy at over ₹80 crore net profit. No visible headwinds emerged this period, though the company is seeking higher borrowing limits which bears monitoring. The trend is positive as Kavach rollout accelerates across Indian Railways, positioning Kernex for continued order flow.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1 | 1 | 8 | 9 | 29 | 41 | 37 | 83 | 56 | 47 | 73 | 255 | 504 |
| Expenses | 1 | 5 | 13 | 21 | 24 | 31 | 28 | 66 | 43 | 33 | 56 | 149 | 341 |
| Operating Profit | 0 | -3 | -4 | -12 | 5 | 10 | 9 | 17 | 13 | 14 | 17 | 105 | 163 |
| OPM % | -52% | -242% | -54% | -139% | 17% | 25% | 23% | 21% | 22% | 30% | 23% | 41% | 32% |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 1 | 0 |
| Interest | 0 | 0 | 1 | 1 | 1 | 3 | 1 | 2 | 3 | 5 | 9 | 12 | 13 |
| Depreciation | 1 | 1 | 3 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 |
| PBT | -1 | -4 | -9 | -13 | 3 | 7 | 7 | 15 | 10 | 9 | 6 | 92 | 148 |
| Tax % | 9% | 10% | 1% | -5% | -4% | 0% | -1% | -114% | 22% | 28% | 3% | 26% | 26% |
| Net Profit | -1 | -5 | -9 | -13 | 4 | 7 | 7 | 33 | 7 | 7 | 6 | 68 | 110 |
| EPS in Rs | -0.57 | -2.85 | -5.07 | -7.53 | 2.16 | 4.09 | 4.28 | 19.45 | 4.45 | 3.92 | 3.59 | 40.63 | 65.37 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 18 | 12 | 12 | 13 | 8 | 15 | 18 | 7 | 4 | 20 | 190 | 430 | 878 |
| Expenses | 25 | 20 | 33 | 25 | 21 | 22 | 14 | 16 | 21 | 42 | 149 | 281 | 579 |
| Operating Profit | -7 | -9 | -21 | -12 | -13 | -7 | 4 | -9 | -17 | -23 | 41 | 149 | 299 |
| OPM % | -37% | -76% | -171% | -87% | -158% | -49% | 21% | -142% | -416% | -117% | 22% | 35% | 34% |
| Other Income | 2 | 2 | 25 | 1 | -4 | 18 | 1 | -3 | 1 | 1 | 1 | 2 | 2 |
| Interest | 3 | 6 | 4 | 2 | 2 | 6 | 1 | 3 | 1 | 3 | 7 | 28 | 39 |
| Depreciation | 4 | 3 | 3 | 2 | 2 | 2 | 2 | 1 | 2 | 2 | 3 | 6 | 7 |
| PBT | -13 | -16 | -2 | -15 | -22 | 3 | 2 | -17 | -20 | -27 | 32 | 117 | 256 |
| Tax % | -2% | -2% | 115% | -4% | -1% | -1% | 2% | 2% | 2% | 0% | -54% | 25% | — |
| Net Profit | -13 | -16 | -4 | -15 | -21 | 3 | 2 | -17 | -20 | -27 | 50 | 88 | 191 |
| EPS in Rs | -10.11 | -12.74 | -3.24 | -11.78 | -17.06 | 2.74 | 1.62 | -13.76 | -12.82 | -15.76 | 29.98 | 52.58 | 114 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 15 | 17 | 17 | 17 |
| Reserves | 101 | 84 | 75 | 64 | 43 | 46 | 50 | 36 | 67 | 90 | 141 | 231 |
| Borrowings | 28 | 33 | 24 | 26 | 21 | 11 | 20 | 18 | 11 | 28 | 40 | 162 |
| Other Liabilities | 20 | 27 | 21 | 19 | 16 | 16 | 12 | 14 | 11 | 27 | 42 | 509 |
| Total Liabilities | 162 | 157 | 133 | 121 | 93 | 85 | 95 | 80 | 104 | 161 | 240 | 919 |
| Fixed Assets | 53 | 50 | 55 | 54 | 43 | 33 | 32 | 25 | 24 | 24 | 25 | 34 |
| CWIP | 10 | 10 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 2 | 7 | 0 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Assets | 99 | 97 | 78 | 68 | 50 | 53 | 63 | 55 | 78 | 135 | 208 | 885 |
| Total Assets | 162 | 157 | 133 | 121 | 93 | 85 | 95 | 80 | 104 | 161 | 240 | 919 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -6 | -4 | -26 | 3 | -23 | -11 | 3 | -5 | -36 | -71 | 15 | -100 |
| Investing | 1 | 0 | 30 | 0 | 26 | 25 | -12 | -7 | -1 | -5 | -9 | -8 |
| Financing | -2 | 3 | -4 | -2 | -2 | -6 | -1 | 0 | 45 | 64 | 5 | 94 |
| Net Cash Flow | -8 | 0 | 0 | 1 | 1 | 7 | -10 | -11 | 9 | -11 | 11 | -14 |
| Free Cash Flow | -6 | -4 | 4 | 3 | 6 | 12 | 3 | 1 | -37 | -76 | 6 | -107 |
| CFO/OP | 83 | 40 | 122 | -26 | 176 | 153 | 86 | 49 | 214 | 311 | 36 | -65 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 1,043 | 1,643 | 1,236 | 996 | 674 | 316 | 239 | 596 | 0 | 94 | 45 | 268 |
| Inventory Days | — | 1,779 | 293 | 1,915 | 844 | 266 | 962 | 967 | 2,141 | 2,098 | 207 | 787 |
| Days Payable | — | 962 | 325 | 1,225 | 405 | 20 | 101 | 177 | 43 | 460 | 76 | 938 |
| Cash Conversion Cycle | 1,043 | 2,460 | 1,205 | 1,686 | 1,114 | 562 | 1,099 | 1,385 | 2,098 | 1,731 | 177 | 117 |
| Working Capital Days | 748 | 889 | 629 | 505 | 272 | 236 | 164 | 226 | 1,219 | 1,161 | 152 | 150 |
| ROCE % | -6% | -7% | -18% | -12% | -15% | -8% | 4% | -13% | -23% | -21% | 24% | 48% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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63 extracted metrics + investor summaries across FY11–FY26.
Documents
Frequently Asked Questions about Kernex Microsystems
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Company Information
Incorporated in 1991, Kernex Microsystems Ltd manufactures and sells Safety Systems and Software services for Railways[1]
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