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Kernex Microsystems India Ltd. (IN:KERNEX)
:KERNEX
India Market
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Kernex Microsystems India Ltd. (KERNEX) AI Stock Analysis

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IN:KERNEX

Kernex Microsystems India Ltd.

(KERNEX)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
₹1,459.00
▲(11.57% Upside)
Kernex Microsystems India Ltd. receives a score of 65, driven primarily by its strong financial performance and bullish technical indicators. The company's improved profitability and financial stability are significant strengths. However, the high P/E ratio and lack of dividend yield suggest valuation concerns. The absence of earnings call data and corporate events means these factors do not influence the score.

Kernex Microsystems India Ltd. (KERNEX) vs. iShares MSCI India ETF (INDA)

Kernex Microsystems India Ltd. Business Overview & Revenue Model

Company DescriptionKernex Microsystems (India) Limited, together with its subsidiaries, engages in conceptualizing, designing, developing, manufacturing, installing, and maintaining of level crossing protection systems and anti-collision systems for the railroad sector. The company offers LxGuard, a level crossing protection system; TrainSHIELD, a train collision avoidance system; SAFELx, a train actuated warning device; SENTINEX, a level crossing warning system; and CASRY, a collision avoidance system for yards and terminals. It also provides ACD, an anti-collision device; ATRW, an automatic timing (recording) device for railway wagons; KTPIS, a train passenger information system; and BCPS2440, a battery charger and power supply product. In addition, the company provides product development, electronic product design, embedded software design, electronic manufacturing, ESS testing, offshore development, quality control, and training services. Kernex Microsystems (India) Limited was incorporated in 1991 and is headquartered in Hyderabad, India.
How the Company Makes MoneyKernex Microsystems generates revenue through multiple streams, primarily from the sale of its railway signaling systems, train control solutions, and related software services. The company engages in contracts with government and private entities involved in rail infrastructure development, providing them with essential technology that enhances operational safety and efficiency. Additionally, KERNEX benefits from long-term service agreements and maintenance contracts, which provide ongoing revenue. The company has established significant partnerships with various railway authorities and organizations, which further bolster its market presence and contribute to its earnings. Their focus on innovation and the ability to adapt to evolving technology trends also play a crucial role in securing new contracts and maintaining existing ones.

Kernex Microsystems India Ltd. Financial Statement Overview

Summary
Kernex Microsystems India Ltd. shows significant progress in financial health with improved profitability and cost management. The balance sheet is solid with a strong equity base and manageable leverage. Positive free cash flow and improved cash conversion ratios are promising, though historical volatility in cash flows and revenue growth poses potential risks.
Income Statement
65
Positive
Kernex Microsystems India Ltd. has shown a remarkable turnaround in its income statement metrics. The most recent year recorded a significant increase in total revenue to 1,897.7 million with a positive net income of 502.4 million, indicating improved profitability. The gross profit margin improved considerably, reflecting better cost management and operational efficiency. However, the company experienced volatile revenue growth over the past few years, which could pose a risk to consistent financial performance.
Balance Sheet
70
Positive
The balance sheet of Kernex Microsystems India Ltd. presents a robust equity position with stockholders' equity at 1,579.1 million, contributing to a favorable equity ratio. The Debt-to-Equity ratio remains manageable, suggesting controlled leverage. The substantial increase in total assets and cash reserves strengthens the company's financial stability. Despite improvements, there remains a potential risk from liabilities, which have increased over the years.
Cash Flow
60
Neutral
The cash flow analysis shows a significant improvement in free cash flow, turning positive to 104.1 million, indicating better cash management and operational efficiency. The operating cash flow to net income ratio points towards improved cash conversion from earnings. However, past periods of negative free cash flow highlight potential cash flow volatility, and the company must ensure sustained positive cash flow to support future growth.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.17B1.90B195.98M40.40M66.52M183.23M
Gross Profit816.29M749.32M-13.45M12.18M30.17M142.12M
EBITDA492.61M408.06M-197.83M-160.34M-121.29M50.86M
Net Income540.82M502.37M-264.12M-198.15M-171.99M20.17M
Balance Sheet
Total Assets0.002.36B1.59B1.02B775.31M922.98M
Cash, Cash Equivalents and Short-Term Investments343.27M150.21M39.08M152.94M67.64M51.57M
Total Debt0.00403.23M279.92M107.02M180.54M202.46M
Total Liabilities-1.57B791.41M525.17M196.12M292.07M295.42M
Stockholders Equity1.57B1.58B1.07B821.51M482.33M626.52M
Cash Flow
Free Cash Flow0.00104.14M-764.44M-280.78M-47.71M25.80M
Operating Cash Flow0.00145.46M-716.30M-273.87M-46.14M32.75M
Investing Cash Flow0.00-88.44M-45.92M-6.27M62.92M9.83M
Financing Cash Flow0.0054.12M648.37M451.46M326.00K-14.56M

Kernex Microsystems India Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1307.75
Price Trends
50DMA
1111.98
Positive
100DMA
1138.38
Positive
200DMA
1052.52
Positive
Market Momentum
MACD
57.51
Negative
RSI
68.12
Neutral
STOCH
67.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KERNEX, the sentiment is Positive. The current price of 1307.75 is above the 20-day moving average (MA) of 1153.80, above the 50-day MA of 1111.98, and above the 200-day MA of 1052.52, indicating a bullish trend. The MACD of 57.51 indicates Negative momentum. The RSI at 68.12 is Neutral, neither overbought nor oversold. The STOCH value of 67.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:KERNEX.

Kernex Microsystems India Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
₹24.25B20.150.44%19.50%18.47%
65
Neutral
₹21.92B40.53358.71%
65
Neutral
₹19.91B464.490.11%-7.50%-79.50%
63
Neutral
₹20.85B50.052.77%62.55%-41.78%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
56
Neutral
₹16.14B72.430.48%4.89%-62.30%
54
Neutral
₹21.91B17.66%93.82%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:KERNEX
Kernex Microsystems India Ltd.
1,307.75
565.70
76.23%
IN:IKIO
IKIO Lighting Limited
208.90
-66.95
-24.27%
IN:NELCO
Nelco Limited
872.40
-87.74
-9.14%
IN:RAMCOSYS
Ramco Systems Limited
586.45
191.80
48.60%
IN:SAKSOFT
Saksoft Limited
182.95
-47.53
-20.62%
IN:SASKEN
Sasken Technologies Ltd
1,387.60
-309.47
-18.24%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 15, 2025