Micro Cap Stock Jumps 4% After Bagging Order For Railway 'KAVACH'

Shares of Kernex Microsystems jumped back in the green on Wednesday halting the three straight session losing streak.

What Happened: The company on Tuesday evening announced bagging an order from Integral Coach
Factory, Chennai. The order is for the supply, installation and commissioning of 12 extra Train
Collision Avoidance System (TCAS) (KAVACH). The order is worth around ₹8.26 crore and is scheduled to be completed by August 2024.

This order is in addition to an earlier KAVACH order given by Integral Coach Factory in 2022. The order was worth around ₹26 crore. The new order helped the stock jump up 4.6% to hit an intraday high of ₹562.80.

See Also: Tata Stock Crashing After Q4: Why Analyst Thinks The Worst Is Yet To Come

The KAVACH is an Automatic Train Protection (ATP) system developed indigenously by the Research Design and Standards Organisation (RDSO) in partnership with the Indian industry. Designed to enhance safety, it prevents trains from passing signals at Red and helps avoid collisions. If the train’s speed exceeds set limits, the KAVACH system automatically activates the braking system to maintain control and safety.

Price Action: Kernex Microsystem’s share price was up 2.07% to trade at ₹549 in early trade on Wednesday.

Read Next: Tata Stock Slumps 3% After Q4: What Are Brokerages Saying