The annual report has information on these contracts. Looks like these contracts had 4 milestones and the company has only completed 1 milestone for both the projects. The AR was released in Sep 2024.
The project delays find a mention in the independent auditor’s report as well. The company says that these contracts would “most likely” be extended because the delays are at Railways-end. As someone who works at a company which works with govt. depts. / PSUs, I know that projects are released with aggressive / unrealistic timelines and that delays generally happen at the PSU end, after which the project timelines are extended.
Hi fabregas, can we make any rough idea of Q3 25 based on available data? Since NCR projects are in limbo and ICF one is quite small order, could post Q3 result be a better period to buy?
They explained this in AGM the delay was due to some customers asked them to do Kavach 4.0 instead of Kavach3.2 and This year they will do 230 crores this is excluding Kavach, so they already did 70 crores, I am expecting they will do 80 crores in revenue in q3. Thoughts?
Can we expect the result on 1st Jan? Also can we infer something from the enthusiasm to publish result so early this time considering Q2 result was on 17th Nov?
Nitin … Closure of Trading Window is only for Employees and KMPs , no relation to date of declaration of results . We should expect results around same dates of last year , unless company has decided otherwise
Hansmukh bhai how listing of a new player could lead to rerating of exiting stock? I am new and would b very grateful if you could explain. And If so then derating could also happen in certain cases?
Quadrant IPO valuation is 1160 Cr and current GMP is 72% so it will list around 2000 cr mcap. So if we compare the valuation.
Kernex : Mcap 2200 cr, Order book - 2500 cr
Quardrant - Mcap post listing 2000 cr, Order book - 978 Cr (Although they have cable business and other railway business as well but revenues are not sizable from them at present)
and as per the management guidance, Kernex about to get more order worth of 900 cr in next 2-3 months. So kernex looks very cheap compare to quardrant so valuation of kernex might catch up.
Parliamentary Standing Committee points out slow pace of Kavach installation. Since govt is saying prob is not on their part, they might give RDSO approvals to more OEMs to push the pace. More competition, reduction in margins, all calculations change. Why Kavach train protection moving at a slow pace? - BusinessToday
Also, QFT in their partnership with Railtel for Kavach implementation are likely to get lesser revenue share compared to Kernex. This also makes Kernex look a better value bet.
Both the major sellers are surprisingly Politically connected . One in Haryana other one in Andhra . But quite intriguing to understand why they cashed out their stakes post Kernex getting such handsome orders . Is it partial profit booking ? Or something that is still known to investors. Hope Kernex doesn’t miss this golden opportunity by messing on execution or some other governance issue
@NitinJ Where did you get this video link. I think it is not there in the screener or is there any way to find this for all stocks where concalls are happening.
Short answer to your question is that locomotive KAVACH should not require a consortium partner and I think Kernex will solely execute this order.
KAVACH equipment is broadly of 2 types:
Station & Wayside KAVACH - this involve erection of towers for communication antenna and installation of RFID tags on the track, laying of cables between stations and signals.
Locomotive KAVACH - Installation of equipment inside the rail engine. This requires some cutting/welding work inside the engine to make space for the KAVACH equipment like 5G & GPS antennas on the roof, interface units with the locomotive pilot’s console and brakes etc.
For loco KAVACH if at all there is a consortium partner then their role would be limited to the cutting/welding work. Supply, installation and testing of the Loco KAVACH equipment would be in Kernex’s scope only.
For station and wayside KAVACH there is an element of civil work (erection of towers, laying of cables etc) and that requires a consortium partner for the EPC work.
bhai how listing of a new player could lead to rerating of exiting stock? I am new and would b very grateful if you could explain. And If so then derating could also happen in certain cases?
