Kernex has won 2 orders worth 311 crores and 182 crores (incl GST @ 18%) under JV share of 60% and 70% respectively to be executed within 2 years.
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e8be6aff-2429-4a09-973f-3eeab8f642b1.pdf (916.7 KB)
Are they doing a concall for the Q4 results…
Is there a way to track the execution, going forward, apart from the exch disclosures by the company…
They haven’t announced any concall for Q4. Previously they have done only one concall in a year. No way to track execution of orders without disclosures. Any disclosures made by other listed players HBL and Quadrant Future Tek should be monitored closely. HBL is likely to conduct a concall post AGM, which is likely to be held in September. I guess we will get updates about Loco KAVACH tender only then.
Quadrant Future Tek, who have prototype level approval for KAVACH and who have got an order of Rs 500-600 Cr for the Loco TCAS tender, has a conference call today at 5:30 PM. Out of the 10k locomotives 20% was reserved for companies with prototype/development level approval. Quadrant and GG Tronics are the 2 companies in this category and together they bagged orders for TCAS installation in 2k locomotives. We will get some info on the Loco TCAS tender in this concall. I may not be able to attend due to office timings. Would be great if someone can attend and post notes here. Concall details are in this link.
Red Flags in the Business:
1. Some significant red flags regarding Kernex business practices, totalling approximately ₹53 crore in write-offs and impairments, which represents a substantial erosion of the company’s balance sheet:
A. FY19 Konkan Railways Trade Receivable Write-offs and Settlements (₹25 Crore)
In Fiscal Year 2019, Kernex reported a series of significant write-offs and settlements:
B. Recurring Write-offs and Impairments (FY17-FY19 Totalling ₹18 Crore)
C. FY22 Write-off of Receivable from Sale of Asset (₹4.4 Crore)
D. FY24 Related Party Trade Receivable impairment (₹4.1 Crore)
Most recently, in FY24, Kernex wrote off ₹4.1 crore in trade receivables from a related party**, Comptex Computer System Pvt. Ltd**. A write-off of this magnitude from a related party raises questions about the legitimacy of the transactions, the recoverability of dues from connected entities, and potential conflicts of interest.
Overall Impact: Significant Balance Sheet Erosion
Cumulatively, these write-offs and impairments amount to approximately ₹53 crore. When compared to the total assets of ₹236 crore in FY25, this represents a significant 23% erosion of the company’s balance sheet .
This level of erosion is a major red flag, indicating substantial losses, poor asset quality, and potentially weak financial management. Investors should carefully consider the implications of these recurring issues and casts doubt on the integrity and transparency of Kernex management.
3. Political Person – Narendra Kumar
The appointment of Narendra Kumar, reportedly from a political family in Haryana, as a Non-Executive Director in 2022 at Kernex Microsystems warrants significant scrutiny from investors. This appointment appears coincident with the company receiving orders worth ₹550 crore in the same year, raising questions about potential influence.
Adding to these concerns, it is reported that Narendra Kumar and his father, Jai Singh, a BJP associate, were implicated in a fraud case involving ₹12 crore in 2017. (link)
His subsequent sale of all stakes in December 2024 further raises serious questions of potential insider trading and questionable governance. Investors should view these events as major red flags regarding management integrity and the company’s ethical conduct.
Below is my understanding as per Quadrant concall today, Quadrant are still awaiting Kavach 4.0(my guess ) approvals, field trials are about to start and mostly likely they may get approvals by August end OR Mid Sep 2025.
Regarding execution of Loco Orders, they need to get a Loco from a shed and then need 24 hrs for installation and verification is just 1 hr maximum
In case of not completing all Locos TCAS on time as per contract,it will go to Retendering route
Quadrant has 15 teams ready for Loco TCAS installation and they may outsource more(if required) and they have planned 300 Locos installation in a month
Rupesh Tatiya, can add more as he had more technical understanding of whole process based on this questions during the call
Disc : Invested in Kernex from a year and HBL few months back
Mangement also told that one of the company got approval for kavach 4.0 eight days back
Is it Kernex or medha??
As per intimation filed by the company con call audio has been uploaded on website but I could not find it there . It is not available on screener as well . Where can we get concall for Quadrant
Going by the timing, Kernex announced on 23rd July, roughly 8 days before Quadrant’s concall, that they have received an order worth Rs 21 Cr to upgrade a section in South Central Railway from KAVACH v3.2 to v4.0. So this indicates that Kernex might be the one which has received KAVACH 4.0 approval.
Respect for connecting the dots logically but going by the norms it is unlikely that they held the press release for V 4.0 for this long. Also the accompanying price action, before disclosure of material developments, is missing.
On a side note, I can now appreciate better the use of “only” (wrt 4.0 approved) in the HBL press release. I was wondering then why they are highlighting this trivial detail when every other vendor is going to get the same soon 
.
Govt official Loco Kavach Installation notes
Kavach installed on Locos 1107 as of 30th July,2025
Read details in below link
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2150296
I think these installations are as per v3.2 done in the past 2-3 years. The Loco KAVACH tender is for v4.0.
