Nifty, Sensex In Red: Why Has This Multibagger Railway Stock Hit 5% Upper Circuit?

While Nifty 50 and BSE Sensex bourses both closed in red, railway stock Kernex Microsystems surged 5 per cent to hit upper circuit of Rs 1,300.75 on Friday, June 13, 2025.

The demand hike in Kernex Microsystems came after the railway company announced that Southern Railways has issued letters of acceptance to its Joint Venture for two projects.

In a regulatory filing on June 13, Kernex Microsystems India informed that the Southern Railways, Chennai has issued a Letters of Acceptances (LOA) to Kernex-VRRC consortium for two projects amounting to Rs 311.03 crore.

The first LoA is for the provision of Kavach (Train Collision Avoidance System), in three sections of Chennai Division in Southern Railway for Rs 173.11 crore, as per the exchange filing

Additionally, the second LoA is for the provision of Kavach along with Tower and 48 Fiber OFC as back bone network in Arakkonam - Jolarpettai Section of Chennai Division in Southern Railway for Rs 137.92 crore.

Kernex Microsystems said it is a partner of the mentioned Joint Venture with a share of 60 per cent. The accepted bid costs for the projects are Rs 311.03 crore, and the completion period is 730 days and 540 days from the date of LoA.

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Additionally, the consortium will provide Kavach along with a tower and 48 Fiber OFC backbone network between Arakkonam and Jolarpettai for Rs 137.92 crore.

Kernex Microsystems Share Price Performance

Kernex Microsystems share price has rallied 64 per cent in one month and over 88 per cent in the last three months. The railway stock has fallen 8 per cent on a year-to-date (YTD) basis, however has jumped by a staggering 246 per cent in one year.

The small-cap stock has delivered multibagger returns of 295 per cent in two years and nearly 8,000 per cent in the past five years.

The shares of Kernex Microsystems closed 5 per cent higher at Rs 1,300.75 apiece.