Achieving consistent performance in the stock market is a daunting task as stock price volatility can lead to fluctuations on any given day. However, there are some stocks that have managed to deliver steady returns to their shareholders over an extended period of time.
These stocks weather the storm of market uncertainties, economic downturns and industry disruptions, maintaining lower volatility and a consistent upward trajectory. Kernex Microsystems is one such stock that has proven its durability and stability in the stock markets.
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The company’s stock has shown a steady upward trend over the past four years, rising from approx ₹20.25 per to the current value of ₹629 per, resulting in an impressive return of 3006%.
Remarkably, the stock has achieved multibagger returns in three of the last four years. In CY21, it increased by 345%, followed by a 126% accumulation in CY22. Additionally, in the latest CY23, it ended the year with a gain of 105%.
As for the current year, it has seen an increase of 10.19% so far. On February 01, the stock reached an all-time high of ₹718 per share.
Kernex Microsystems is engaged in the manufacture and sale of safety and anti-collision systems for railways, together with software services.
The company started developing railway safety systems in 1999 and successfully developed and demonstrated prototype ACDs to Konkan Railway Corporation Limited and members of the Railway Safety Board, as its website shows.
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With the Government of India’s thrust now on modernizing railways with large infrastructure expenditures and rail safety, the company is in a strong position to seize the opportunities.
The security measures taken in recent years have yielded results. To further enhance this effort, high-density networks and highly utilized network routes will be provided with an indigenously designed automatic train collision system that eliminates train collisions due to human error.
In the recent interim budget 2024–25, the government allocated more than ₹557 crore for the installation of the anti-collision device of the railways, “Kavach”, Railway Minister Ashwini Vaishnaw informed the Rajya Sabha on February 09.
“Kavach was adopted as a national automatic train protection (ATP) system in July 2020, and it has so far been deployed on 1,465 route kilometers and 139 locomotives (including electric multi-unit rakes) on the South-Central Railway,” the minister said. .
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The Kavach system acts as a safeguard or armor for trains, ensuring enhanced safety and preventing accidents.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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Published: 12 Feb 2024, 17:00 IST