Multibagger stock: Kernex Microsystems delivered over 100% return for 3 straight years

Achieving consistent returns in the equity market is a daunting task, as share price volatility can lead to fluctuations on any given day. However, there are a few 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 demonstrated its resilience and stability in the equity markets.

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The company's shares have shown a steady growth trend over the past four years, increasing from approximately ₹20.25 apiece to the current value of ₹629 apiece, resulting in a stunning return of 3006%.

Remarkably, the stock has achieved multibagger returns in three of the last four years. In CY21, it surged by 345%, followed by a 126% rally in CY22. Additionally, in the latest CY23, it concluded the year with a gain of 105%.

As for the current year, it has seen an increase of 10.19% thus far. On February 01, the stock reached an all-time high of ₹718 per share.

Kernex Microsystems is engaged in the manufacturing and sale of safety systems and anti-collision devices for railways, along with software services.

The company started developing railway safety systems in 1999 and successfully developed and demonstrated a prototype of 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 being on modernising railways with large infrastructure spending and rail safety, the company is in a strong position to grab the opportunities.

The safety measures taken in the last few years have yielded results. To further strengthen this effort, high-density networks and highly utilised 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 has allocated more than ₹557 crore for the installation of the railways' anti-collision device, '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 kilometres and 139 locomotives (including electric multiple 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.