Kernex Microsystems (India) LtdNSE:KERNEX
Current view Q1 2027
Supplies Kavach, the anti-collision braking system, to Indian Railways as one of only three RDSO-approved makers, on an ₹4,150 cr order book worth ten years of sales. The reported numbers look good but the balance sheet does not: operating cash flow is negative and widening, debtor days keep rising, and interest has gone from ₹3 cr to ₹13 cr. Whatever profit it earns is not converting to cash. The 45x peak multiple has at least corrected to 15x.
Latest exchange filings last 5 · 5 after Q1 2027
- 9 Sep ’26Newspaper publication about the 34th Annual General Meeting of the Company ↗
- 8 Sep ’2634th AGM on 30 Sep 2026 via VC/OAVM; approves FY26 accounts and director reappointments. ↗
- 8 Sep ’2634th AGM on 30 Sep 2026; FY26 annual report, director reappointments, and financial statement adoption. ↗
- 8 Sep ’2634th AGM on 30 September 2026; cutoff 23 September, book closure 24-30 September. ↗
- 8 Sep ’26Newspaper Publication 8 Sep ↗
Exchange filings, with the company's own one-line summary, read off the same page as the figures. Screener publishes only the most recent few, so this is the last 5 — not everything filed since your note, and a quiet-looking list is not proof of a quiet quarter. A filing is marked new when it is dated after the end of the quarter your note covers. Not scored, and not a judgement — a routine repayment notice and a takeover sit in the same list.
How this view changed
AI concall report · Q1 2027
The full earnings-call read behind this view — what management promised, what they delivered, and the earning trigger.
Growth Q1 2027
| Metric | This year vs lastYoY · vs Q1 2026 | vs the quarter beforeQoQ, sequential · vs Q4 2026 | 3-year yearly average3Y CAGR · compounded | 5-year yearly average5Y CAGR · compounded |
|---|---|---|---|---|
| Sales | ▲ +800.0% | +97.7% | +375.5% | +88.6% |
| Operating profit | ▲ +1153.8% | +55.2% | +127.0% | +97.7% |
| EPS | ▲ +1369.0% | +60.9% | +79.0% | +100.6% |
| PAT | ▲ +1471.4% | +61.8% | — | — |
Tinted rows drive the Tier. Tier = the weaker of YoY Sales and YoY PAT growth. Here the weaker is Sales at +800.0%, which is ≥ 20% → Tier 1.
QoQ is sequential, not a trend. For most Indian companies the March quarter is seasonally the largest, so a June-quarter fall against it is a calendar effect. Only the YoY column feeds the Tier.
Multibagger potential
Strong86/100
⚠ Your own view on this company is Concern. Read the note above first — this score reads the figures, and it has not read the concall.
Cheap, and growing fast. Profit per share grew 60% a year, while the price-tag on its earnings actually got smaller. That gap — real growth nobody has paid up for — is exactly what this score looks for.
₹1,714 → ₹3,428 needs the P/E at 7.4× — it is 15× today, and has ranged 17× to 245× over the last 5 years. The rest would come from earnings growing as they have.
What you pay for its profitlog scale · 5-year range
Tripling needs 11× — below anything it traded at in 5 years.
At ₹4,574 the price-tag on its earnings reaches the 40× it is being projected toward — the point where being cheap against that yardstick is used up.
Earnings delivered, market hasn't paid yet. The pre-re-rate zone — read the concall.
How this is calculated
This is arithmetic, not a forecast — Return = ΔEPS × ΔMultiple. It says what would have to be true, not how likely it is, and "earnings keep growing at this rate for three more years" is the assumption doing the most work. This is a small-cap at ₹2,754 cr, so the odds of a re-rate are not fighting its own size.
Growth rate used: 60.0% — the weakest of EPS / Sales / Op-profit from 3-year EPS CAGR, capped at 60%. Latest quarter reads 60%.
How it compares with its rivals Railways · 2 shown
It earns 48% on its capital, more than any of them — the next best earns 13%, and it is the cheapest of those shown.
| Company | Price | P/E | Size | ROCE | Profitlast qtr | Saleslast qtr |
|---|---|---|---|---|---|---|
| Kernex Microsys. | ₹1,726 | 15.2× | ₹2,900 Cr | 47.8% | +1372.5% | +800.4% |
| Blackbuck | ₹637 | 67.6× | ₹11,602 Cr | 12.8% | +25.1% | +42.2% |
Screener's own peer group, from the request already made for the industry P/E. It serves the industry's largest names by market cap, not companies of a similar size, so treat this as context rather than a like-for-like table; this company is always shown. On a phone the price, size and sales columns are dropped rather than pushed off the edge. Not part of the score.
Business quality to Jun 2026
| Are the margins widening? | wider, but it has moved around a lot | operating margin -52% → 32% over 3 years |
|---|---|---|
| Did the profit turn into cash? | most of it arrived as cash | -65% last year, 94% over three · free cash flow −₹107 cr, positive in 2 of 5 years |
| Is the growth borrowed? | borrowed about as much as it owns | ₹162 cr — 0.65× its own equity (was 0.25×) |
| Is it being collected? | customers are taking longer to pay | 268 days to collect, up 223 in a year · cash cycle 117 days |
| Who has been buying? | the promoters have held steady | promoters 28.7% (−0.2 in a year), 31.6% → 28.7% over 2.8 years · FIIs 2.5% (+2.0) · DIIs 0.1% (−1.1) · shareholders 14,660 → 41,803 |
| What does it earn on its capital? | earns a high return on the capital it employs | ROCE 47.8% · ROE 43.5% |
Fetched from the filings, not typed — and deliberately not part of the score. These are the questions the score cannot ask: it reads growth, price and trend, so a company can score well while its profit never becomes cash. Weigh these beside the note, not against the number.
Screener's own checklist not mine, not the score
In its favour
- Company has delivered good profit growth of 116% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 26.1%
- Company's median sales growth is 15.8% of last 10 years
Against it
- Stock is trading at 11.5 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Promoter holding is low: 28.7%
- Company has high debtors of 268 days.
Generated by screener.in from a fixed checklist — not written by me and not an input to the score. It is here as a second machine opinion to weigh against the note; where it disagrees with the view above, the note is the considered one.