Where is this data? Any link for the same?
Next phase of Kavach implementation is planned as under:-
Project for equipping 10,000 Locomotives has been finalized.
Bids for track side Works of Kavach for approximately 15000 RKm have been invited, out of which Bids for about 9000Rkm have been opened. It covers all GQ, GD, HDN and Identified sections of Indian Railways.
The cost for provision of Track Side including Station equipment of Kavach is approximately Rs. 50 Lakhs/Km and cost for provision of Kavach equipment on locomotives is approximately Rs. 80 Lakh/Loco
3 Likes
Other than Kernex HBL CG and railtel did another company having or developing this TCAS or KAVCH technology??
With thanks
1 Like
Order wins of Kavach for every Locomotive is Approx in the range of Rs 65-70 lac along with 4 years AMC . Post that AMC for 11 years at approximate 2-3% of cost .
Medha engineering is another player . Doubt Railtel is in this tech
1 Like
Medha is not a listed firm.
Railtel recently acquired Punjab based company which has the Kavach vertical.
Concord Control is another listed company which has 26% stake in progota. This progota has conducted some trails on KAVACH. They are in final stages for getting approvals from RDSO.
Concord also planning to increase their stake in this company.
With thanks
1 Like
As per recent PIB press release wrt information given by Railway Minister Shri Ashwini Vaishnaw Ji in a written reply in Lok Sabha “Currently, 3 OEMs are approved for supply of Kavach System. To increase capacity and scale of implementation, trials and approval of more OEMs are at different stages.”
Kavach system is indigenously developed by DRDO in collaboration with Medha Servo Drives, Kernex Microsystems and HBL Power Systems.
GG Tronics, which is a subsidiary of CG Power now and recently secured Kavach order worth Rs.500 crore is also an approved/partially approved vendor for Kavach. In August 2024 concall CG Power management mentioned that GG Tronics is 1 of 4 approved vendors and later in Oct 2024 they mentioned that they have received developmental order worth Rs. 4 crore for Kavach.
CG Power management said in Oct 2024 “The Kavach, right now, we are at the development phase. So we get around 20% of the market share in Kavach. And we hope to get this Kavach qualified early next year. By January, we should be a full portion Kavach supplier.”
2 Likes
Agree . Medha engg group has controlling stakes in Olectra Greentech as one of the listed entities . They are one of the global leaders in Railway tech . I assume their Name appears as Medha Servo Drives and they are one of the 3 OEMs who are qualified to do Kavach tender Biddings . Other’s may qualify and bid in later rounds . But let’s account for time required to Qualify as a bidder .
Agree . They are moving towards developing these solutions . They are already RDSO approved vendor and may get fast approval if their solution is comparable . Can be huge positive for them
Dear - I think you are talking about Megha Engg.
Medha Servo drive is a PVT limited company.
As per my understanding Medha has no relationship in terms of ownership with Olectra
With thanks
Kernex has received an order for Rs 2041 Cr. This is for the 10k locomotives tender, out of which Kernex has bagged the order for 2500 sets. This comes out to Rs 81 lakh per set. https://www.bseindia.com/xml-data/corpfiling/AttachLive/e47780b8-1e11-4a3e-958d-07450cf2cb00.pdf
What a win this is for the company! Their TTM revenue is 87 Cr and now they have an order in hand of 2041 Cr. Order value is more than their current market cap.
9 Likes
3 Likes
Does the market doubt they will be able to execute this in a year? The circuit keeps opening due to huge selling (though it does get absorbed). But considering the order and pipeline, who in their right mind is selling and why?
1 Like
yes market cap should be lot more than double as per me in next 15 months as said by management in the above video.
2k mcap, loss making, received 2k order with 20% ebidta and 15% PAt. So around 300cr PAT in FY26. So forward PE would be 7. Expecting 1k orders more till Mar 25 in station tcas and loco tcas.
But main issue is execution delays as I have seen that they have received 2 huge order in Sept 2022 but they are not executed yet. Not sure if this delay is from Railway side or company or something else.
7 Likes
My channel checks suggest that they have learned their lessons and ramped up execution capacity significantly in expectation of these orders . Their last investor ppt indicates same . They have also started incentivising their team on performance now , indicated in ESOPs issued .
I see bigger challenge in railways being able to provide locomotives for installation of TCAS .
300 cr in FY26 looks reasonable and achievable
Sellers seem to be ones who have already made huge gains and booking partial profits in this rally
My strategy would be to watching and riding on this journey of Rs 300 cr , unless there is some major break in hypotheses.
Railways also seems to be releasing payments for every locomotive fitted and tested for TCAS in max 60-90 days , which takes our B2G business risk .
If Kernex doesn’t change orbit this time they definitely need to invent a Execution collision avoidance system for themselves to stay relevant
7 Likes
The circuit keeps on opening because there aren’t enough buyers. There is almost zero institutional holding in kernex. Already 70% of the shares are with retail investors. So its mainly the retail investors who are participating. So unless some big HNIs or institutions start buying, you will see ups and downs. However I think the general direction should be upwards only.
Even after HBL announced their 2200 locomotives order, there is hardly any reaction from the market. So this phenomenon is not Kernex specific. I think the orders are yet to sink in.
The 2k Cr order is just a very big turning point for the company. This will change their orbit.
Disc: invested in Kernex and HBL.
4 Likes
Dear fabregas - HBL is far superior than kernex in several aspects.
- HBL has the KAVACH approval along with two other vendors but the execution capabilities of HBL and Medha are very reliable.
- Kavach is the primary bread and butter for Kernex but for HBL, it’s just one vertical. They had their conventional battery business and they are investing in new technologies like FUZES and retro fitment of heavy vehicles in to EVs.
With thanks
6 Likes
Yes . Person who has sold acquired around 6.7 lac shares in 2017 and is a Political family from Haryana . Contested on AAP ticket and has a fraud case registered against him ( Courtesy Google ). Upper circuit in today’s market indicates that market is ready to absorb all big supplies and bullish on counter .
5 Likes
Hi Bharat,
Is it possible for you share the article? Thanks
CHANDIGARH: The Sonipat police on Wednesday booked a district BJP leader and his son as well as their associates for allegedly siphoning off Rs 12.76 crore from the accounts of a
New Delhi-based
company through fraudulent withdrawal from the bank. The main accused have been identified as Jai Singh and his son
Narendera Kumar
.