Kernex Microsystems India Ltd. (KERNEX) AI Stock Analysis

• Market Cap: ₹18.42B
• Dividend Yield: N/A
• Average Volume (3M): 13.17K
• Price to Earnings (P/E): 34.1
• Beta (1Y): 0.76
• Revenue Growth: 358.71%
• EPS Growth: N/A
• Country: IN
• Employees: 228
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 4.45
• Shares Outstanding: 16,759,422
• 10 Day Avg. Volume: 11,676
• 30 Day Avg. Volume: 13,169
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,160.00
• Price Target Upside: 2.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ₹1,160.00 ▲(2.64% Upside)

Kernex Microsystems India Ltd. demonstrates strong financial performance with improved profitability and a solid balance sheet. However, technical indicators suggest potential short-term weakness, and the stock's high P/E ratio indicates it may be overvalued. The absence of a dividend yield further limits its appeal. The overall score reflects these mixed factors, with financial performance being the most significant contributor.

Kernex Microsystems India Ltd. Business Overview & Revenue Model

Company Description

Kernex Microsystems India Ltd. (KERNEX) is a technology and engineering company specializing in providing safety and signaling solutions for railways and other transportation sectors. The company is known for developing advanced safety systems and products such as Automatic Train Protection (ATP) systems, collision avoidance systems, and other related software and hardware solutions. Kernex operates primarily in the rail transportation sector, offering cutting-edge technology to enhance safety and efficiency in train operations.

How the Company Makes Money

Kernex Microsystems India Ltd. generates revenue through the sale and maintenance of its safety and signaling solutions for the rail transportation industry. The company earns money by entering into contracts with government and private railway operators for the deployment of its Automatic Train Protection systems and related technologies. Additionally, Kernex offers after-sales services, maintenance contracts, and software updates, which provide ongoing revenue streams. The company may also engage in strategic partnerships or collaborations with other technology firms or government agencies to enhance its product offerings and expand its market reach.

Kernex Microsystems India Ltd. Financial Statement Overview

Summary

Kernex Microsystems India Ltd. has shown significant improvement in profitability and cost management, with a positive net income and improved gross profit margin. The balance sheet is strong with a robust equity position and manageable leverage. However, there are risks due to volatile revenue growth and historical cash flow volatility.

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 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90B	1.90B	40.40M	195.98M	66.52M	183.23M
Gross Profit	779.12M	749.32M	12.18M	-13.45M	30.17M	142.12M
EBITDA	414.08M	408.06M	-160.34M	-197.83M	-121.29M	50.86M
Net Income	502.37M	502.37M	-198.15M	-264.12M	-171.99M	20.17M
Balance Sheet
Total Assets	2.36B	2.36B	1.02B	1.59B	775.31M	922.98M
Cash, Cash Equivalents and Short-Term Investments	343.27M	343.27M	326.15M	39.08M	67.64M	51.57M
Total Debt	403.23M	403.23M	107.02M	279.92M	180.54M	202.46M
Total Liabilities	791.41M	791.41M	196.12M	525.17M	292.07M	295.42M
Stockholders Equity	1.58B	1.58B	821.51M	1.07B	482.33M	626.52M
Cash Flow
Free Cash Flow	0.00	104.14M	-280.78M	-764.44M	-47.71M	25.80M
Operating Cash Flow	0.00	145.46M	-273.87M	-716.30M	-46.14M	32.75M
Investing Cash Flow	0.00	-88.44M	-6.91M	-45.92M	62.92M	9.83M
Financing Cash Flow	0.00	54.12M	412.78M	648.37M	326.00K	-14.56M

Kernex Microsystems India Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1130.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1130.2 is above the 20-day moving average (MA) of 1074.91, above the 50-day MA of 1109.25, and above the 200-day MA of 1060.82, indicating a neutral trend. The MACD of -7.03 indicates Negative momentum. The RSI at 52.78 is Neutral, neither overbought nor oversold. The STOCH value of 82.06 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAKSOFT	68 Neutral	₹27.88B	23.16		0.38%	19.50%	18.47%
SASKEN	64 Neutral	₹21.44B	51.47		2.58%	62.55%	-41.78%
IKIO	63 Neutral	₹16.27B	73.00		0.47%	4.89%	-62.30%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
KERNEX	60 Neutral	₹18.42B	34.07		―	358.71%	―
RAMCOSYS	54 Neutral	₹15.73B	―		―	17.66%	93.82%
NELCO	48 Neutral	₹18.57B	279.27		0.12%	-3.17%	-69.93%