Kernex Microsystems India Ltd. (KERNEX) AI Stock Analysis

• Market Cap: ₹21.34B
• Dividend Yield: N/A
• Average Volume (3M): 18.93K
• Price to Earnings (P/E): 39.5
• Beta (1Y): 0.82
• Revenue Growth: 155.87%
• EPS Growth: N/A
• Country: IN
• Employees: 228
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.92
• Shares Outstanding: 16,759,422
• 10 Day Avg. Volume: 35,381
• 30 Day Avg. Volume: 18,926
• PEG Ratio: -0.10
• Price to Book (P/B): 8.70
• Price to Sales (P/S): 7.24
• P/FCF Ratio: 131.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹1,231.00 ▲(12.35% Upside)

Kernex Microsystems India Ltd. shows a solid financial performance with improved profitability and financial stability, which is the most significant factor in the overall score. Technical analysis indicates mixed signals with short-term weakness but a longer-term uptrend. The high P/E ratio suggests the stock may be overvalued, impacting its attractiveness. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Kernex's substantial revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

Balance Sheet Health

A strong equity base and manageable leverage enhance financial stability, providing a solid foundation for future investments and growth.

Cash Flow Improvement

Positive free cash flow reflects improved cash management and operational efficiency, enabling Kernex to fund growth initiatives sustainably.

Negative Factors

Revenue Growth Volatility

Volatile revenue growth poses a risk to consistent financial performance, potentially impacting long-term planning and investor confidence.

Liabilities Increase

Rising liabilities can strain financial resources and limit flexibility, posing a challenge to maintaining financial health over time.

Cash Flow Volatility

Historical cash flow volatility could affect Kernex's ability to consistently fund operations and growth, impacting financial stability.

Kernex Microsystems India Ltd. Business Overview & Revenue Model

Company Description

Kernex Microsystems India Ltd. (KERNEX) is an Indian technology company specializing in the development and manufacturing of advanced electronic systems and products primarily for the railway and transportation sectors. The company focuses on providing innovative solutions such as train control systems, signaling solutions, and passenger information systems aimed at enhancing safety, efficiency, and reliability in rail operations. KERNEX is also involved in the design and deployment of telecommunication systems and software solutions tailored for the transportation industry.

How the Company Makes Money

Kernex 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. demonstrates significant progress in financial health. Improved profitability and cost management have strengthened the income statement. The balance sheet reflects a solid equity base and manageable leverage, enhancing financial stability. 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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.17B	1.90B	195.98M	40.40M	66.52M	183.23M
Gross Profit	816.29M	749.32M	-13.45M	12.18M	30.17M	142.12M
EBITDA	492.61M	422.53M	-197.83M	-160.34M	-121.29M	50.86M
Net Income	540.82M	502.37M	-264.12M	-198.15M	-171.99M	20.17M
Balance Sheet
Total Assets	0.00	2.36B	1.59B	1.02B	775.31M	922.98M
Cash, Cash Equivalents and Short-Term Investments	343.27M	150.21M	39.08M	152.94M	67.64M	51.57M
Total Debt	0.00	403.23M	279.92M	107.02M	180.54M	202.46M
Total Liabilities	-1.57B	791.41M	525.17M	196.12M	292.07M	295.42M
Stockholders Equity	1.57B	1.58B	1.07B	821.51M	482.33M	626.52M
Cash Flow
Free Cash Flow	0.00	104.14M	-764.44M	-280.78M	-47.71M	25.80M
Operating Cash Flow	0.00	145.46M	-716.30M	-273.87M	-46.14M	32.75M
Investing Cash Flow	0.00	-88.44M	-45.92M	-6.27M	62.92M	9.83M
Financing Cash Flow	0.00	54.12M	648.37M	451.46M	326.00K	-14.56M

Kernex Microsystems India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1095.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KERNEX, the sentiment is Negative. The current price of 1095.7 is below the 20-day moving average (MA) of 1248.75, below the 50-day MA of 1217.48, and above the 200-day MA of 1050.87, indicating a neutral trend. The MACD of -32.44 indicates Positive momentum. The RSI at 33.80 is Neutral, neither overbought nor oversold. The STOCH value of 4.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KERNEX.

Kernex Microsystems India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAKSOFT	72 Outperform	₹26.20B	21.76	―	0.42%	21.17%	27.66%
SASKEN	63 Neutral	₹20.77B	52.82	―	1.85%	77.13%	-39.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KERNEX	57 Neutral	₹21.34B	39.45	―	―	155.87%	―
IKIO	54 Neutral	₹16.08B	72.13	―	0.53%	11.73%	-64.05%
NELCO	54 Neutral	₹19.84B	462.97	―	0.12%	-7.50%	-79.50%
RAMCOSYS	52 Neutral	₹22.62B	-161.07	―	―	20.41%	―

Kernex Microsystems India Ltd. Corporate Events

Kernex Microsystems Appoints New President for Kavach Operations

Kernex Microsystems India Ltd. has announced the appointment of Mr. Ganesh Kumar Dwivedy as President of Kavach Operations and Related Projects, effective September 26, 2025. Mr. Dwivedy brings over 36 years of experience in railway signaling and safety, having held significant roles in Indian Railways and international railway systems. His expertise in program and project management, particularly in rail automation and safety systems, positions him as a valuable asset to Kernex Microsystems. This appointment is expected to enhance the company’s operational capabilities and strengthen its market position in the railway signaling and safety industry.