**Kernex Microsystems - Investment Thesis** ***Company Focus:** Kavach (Train Collision Avoidance System) & Railway Signaling. **Recent Developments:** * Won a significant Rs. 2000cr order for Kavach. * Increased production capacity to 5500 locos/annum. * Entered on-station signaling market, expecting Rs. 800-1000cr orders. **Guidance:** * FY25 revenue target: Rs. 800cr. * FY26 revenue target: Rs. 2000cr. * Operational margin target: 20%. * Order pipeline: Rs. 10,000cr (if all expectations met). **Key Points:** * Strong growth potential with healthy margins. * Focus on advanced technologies for future growth. **Counter Thesis:** * Increased competition could impact margins. * Risk of government slowing down Kavach outlay. * Execution risk. **Technical Outlook:** * Stock bounced off support and is above 50EMA. **Valuation:** * Conservative estimate: FY25 net profit ~ Rs. 190cr. * Implied Mcap at 15-20x PE: Rs. 2800 - 3800 cr. * Current Mcap: ~Rs. 2000cr. *Disclaimer:** This is for informational purposes only and not investment advice. I hope this is helpful! **Note:** * Remember to always conduct thorough research and due diligence before making any investment decisions. * Consider consulting with a qualified financial advisor. PS: Used Gemeni AI to convert my writeup into a more whatsapp friendly version. Also attached the writeup in my non-formal style.