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Kernex Microsystems India Ltd.
(KERNEX)
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Rating:58Neutral
Price Target:
₹1,710.00
▼(-22.69% 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 Acceleration
The sharp 2026 revenue increase indicates meaningful scale-up and stronger execution of the company’s railway technology projects. If deployments continue, higher operating scale can support greater customer reach, strengthen delivery capabilities, and provide a broader base for future service revenue.
Negative Factors
Weak Cash Conversion
The sharp reversal from positive 2025 cash flow to substantial 2026 operating and free-cash outflows weakens earnings quality. Persistent cash conversion problems could constrain project execution, increase reliance on financing, and reduce the company’s ability to fund growth without additional liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Acceleration
The sharp 2026 revenue increase indicates meaningful scale-up and stronger execution of the company’s railway technology projects. If deployments continue, higher operating scale can support greater customer reach, strengthen delivery capabilities, and provide a broader base for future service revenue.
Read all positive factors
Kernex Microsystems India Ltd. (KERNEX) vs. iShares MSCI India ETF (INDA)
Market Cap
₹29.12B
Dividend Yield1.94%
Average Volume (3M)29.11K
Price to Earnings (P/E)13.8
Beta (1Y)1.59
Revenue Growth304.50%
EPS Growth251.76%
CountryIN
Employees609
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)125.55
Shares Outstanding16,803,621
10 Day Avg. Volume14,972
30 Day Avg. Volume29,108
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
Neutral
2212.00
Price Trends
2021.89
Negative
1894.62
Negative
1509.11
Positive
Market Momentum
-90.93
Negative
43.44
Neutral
39.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KERNEX, the sentiment is Neutral. The current price of 2212 is above the 20-day moving average (MA) of 1766.03, above the 50-day MA of 2021.89, and above the 200-day MA of 1509.11, indicating a neutral trend. The MACD of -90.93 indicates Negative momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 39.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | ₹49.26B | 35.80 | ― | 0.39% | 1.83% | -12.91% | |
70 Outperform | ₹208.10B | 31.09 | ― | 2.25% | 5.19% | -12.17% | |
60 Neutral | ₹7.22B | 8.15 | ― | 0.46% | 9.34% | 2.71% | |
58 Neutral | ₹29.12B | 13.80 | ― | 1.94% | 304.50% | 251.76% | |
56 Neutral | ₹21.26B | 51.10 | ― | ― | 15.71% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ₹142.11B | 61.02 | ― | 0.13% | 12.20% | 2.98% |
* General Sector Average
IN:KERNEX
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1,732.90
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58.02%
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Kernex Microsystems India Ltd. Corporate Events
Kernex Microsystems Sets 34th AGM, Tables FY26 Accounts and Board Reappointments
Sep 8, 2026
Kernex Microsystems (India) Ltd. has convened its 34th Annual General Meeting for 30 September 2026 at 11:00 a.m. IST, to be conducted via two-way video conferencing and other audio-visual means from its registered office. The AGM notice, which fo...
Kernex Microsystems Sets Record Date and Book Closure for 2026 AGM
Sep 8, 2026
Kernex Microsystems (India) Ltd. has scheduled its 34th Annual General Meeting for September 30, 2026, at 11:00 a.m. IST, to be conducted via video conferencing or other audio-visual means in line with guidance from corporate and securities regula...
Kernex Highlights KAVACH-Focused Growth Strategy in New Investor Presentation
Sep 4, 2026
Kernex Microsystems India Ltd. has released an investor presentation outlining its business profile, the KAVACH opportunity, current order book, manufacturing capabilities, and recent financial performance. The document also highlights new busines...
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.