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Kernex Microsystems India Ltd.
(KERNEX)
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Rating:58Neutral
Price Target:
₹1,979.00
▼(-10.53% Downside)
Action:Reiterated
Date:08/19/26
The score is primarily constrained by weak cash flow quality and higher financial risk from the 2026 cash outflow and increased debt, despite strong revenue growth and improved reported profitability. Technical indicators also point to bearish near-term momentum. Valuation is a partial offset with a reasonable P/E, but it does not fully counterbalance the cash flow and trend risks.
Positive Factors
Revenue Scale-Up
Revenue growth of roughly 93% in 2026 demonstrates substantial recent scale-up in the core project business. If execution converts this expanded activity into cash, the larger revenue base can support operating leverage and broader railway deployments.
Negative Factors
Weak Cash Conversion
Deeply negative operating and free cash flow despite reported profits signals weak earnings quality. Working-capital demands, collection delays, or investment needs could persist, limiting self-funding capacity and increasing reliance on external liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Scale-Up
Revenue growth of roughly 93% in 2026 demonstrates substantial recent scale-up in the core project business. If execution converts this expanded activity into cash, the larger revenue base can support operating leverage and broader railway deployments.
Read all positive factors
Kernex Microsystems India Ltd. (KERNEX) vs. iShares MSCI India ETF (INDA)
Market Cap
₹28.72B
Dividend Yield1.94%
Average Volume (3M)29.82K
Price to Earnings (P/E)13.8
Beta (1Y)1.58
Revenue Growth304.50%
EPS Growth251.76%
CountryIN
Employees228
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)125.55
Shares Outstanding16,803,621
10 Day Avg. Volume22,644
30 Day Avg. Volume29,819
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)7.50
Price to Sales (P/S)4.32
P/FCF Ratio-13.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kernex Microsystems India Ltd. Business Overview & Revenue Model
Company Description
Kernex Microsystems (India) Limited, along with its associated companies, offers end-to-end solutions for the railway sector, spanning from initial concept and design through manufacturing, installation, and ongoing maintenance. Their primary expe...
How the Company Makes Money
Kernex primarily makes money by designing, supplying, and implementing railway safety and automation projects for rail operators and government-linked railway entities. Its core revenue stream is project/contract revenue from the sale and deployme...
Kernex Microsystems India Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
63
Positive
Cash Flow
35
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Jun 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.78B | 4.30B | 1.90B | 195.98M | 40.40M | 66.52M |
| Gross Profit | 3.61B | 1.69B | 749.32M | -13.45M | 12.18M | 30.17M |
| EBITDA | 3.00B | 1.51B | 422.53M | -197.83M | -160.34M | -121.29M |
| Net Income | 1.91B | 883.36M | 502.37M | -264.12M | -198.15M | -171.99M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 9.19B | 2.36B | 1.59B | 1.02B | 775.31M |
| Cash, Cash Equivalents and Short-Term Investments | 270.02M | 270.02M | 150.21M | 39.08M | 152.94M | 67.64M |
| Total Debt | 0.00 | 1.62B | 403.23M | 279.92M | 107.02M | 180.54M |
| Total Liabilities | -2.47B | 6.72B | 791.41M | 525.17M | 196.12M | 292.07M |
| Stockholders Equity | 2.47B | 2.48B | 1.58B | 1.07B | 821.51M | 482.33M |
Cash Flow | ||||||
| Free Cash Flow | -467.20M | -1.42B | 104.14M | -764.44M | -280.78M | -47.71M |
| Operating Cash Flow | -439.94M | -1.28B | 145.46M | -716.30M | -273.87M | -46.14M |
| Investing Cash Flow | -42.28M | -75.69M | -88.44M | -45.92M | -6.27M | 62.92M |
| Financing Cash Flow | 413.10M | 1.22B | 54.12M | 648.37M | 451.46M | 326.00K |
Kernex Microsystems India Ltd. Technical Analysis
Negative
2212.00
Price Trends
2074.99
Negative
1872.85
Negative
1497.70
Positive
Market Momentum
-107.33
Positive
39.31
Neutral
38.82
Neutral
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 2212 is above the 20-day moving average (MA) of 1811.13, above the 50-day MA of 2074.99, and above the 200-day MA of 1497.70, indicating a neutral trend. The MACD of -107.33 indicates Positive momentum. The RSI at 39.31 is Neutral, neither overbought nor oversold. The STOCH value of 38.82 is Neutral, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹51.44B | 36.86 | ― | 0.38% | 1.83% | -12.91% | |
70 Outperform | ₹212.32B | 32.19 | ― | 2.22% | 5.19% | -12.17% | |
60 Neutral | ₹7.14B | 8.25 | ― | 0.46% | 9.34% | 2.71% | |
58 Neutral | ₹28.72B | 13.80 | ― | 1.94% | 304.50% | 251.76% | |
56 Neutral | ₹22.92B | 53.56 | ― | ― | 15.71% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ₹132.39B | 60.99 | ― | 0.13% | 12.20% | 2.98% |
* General Sector Average
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Kernex Microsystems India Ltd. Corporate Events
Kernex Wins Rs 66.62-Crore KAVACH Order from Integral Coach Factory
Aug 2, 2026
Kernex Microsystems India Ltd., a rail safety and signalling technology provider, specializes in delivering on-board train protection systems and associated installation, testing, and maintenance services for electric multiple units within India&#...
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.