Kernex Microsystems can move to Rs 150: SP Tulsian

Kernex Microsystems (India) can move to Rs 150 in a year time, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "There is interesting indications coming in from the Q4 results of Kernex Microsystems. The Q4 has contributed about 40% of the top-line. What the company has posted for whole of FY11 and the bottom-line is about 45% having posted alone in Q4. The indications given by the company that they will be executing the 1360 electronic gates projects for the Egyptian railway for that the inspection will be going to happen in the month of June. The team from Egypt will be coming for inspection and they should be able to execute that order in next 6 months time."
He further added, "The second is the company is aggressively working on restoration and maintenance on the North frontier railways where they have fixed the anti-collision devices, 2-3 years back as well as they are working with their technology partner that is Konkan Railway for finalization of version I and version II of ACD and both these things, restoration, maintenance work, the up-gradation of the anti-collision devices of version I and II all are likely to get completed by October this year. So it is expected then the railway order for anti-collision devices, which has been pending for quite some time, I would say for last couple of years will start flowing in from the month of October or maybe the year end which really be augmenting the top-line and bottom-line of the company over the next 3-5 years."
"Because that order size will be have about Rs 4,000-5,000 crore which will be spread over next 7 years. So once company starts getting this and looking to the EBITDA margin the company is enjoying to the extent of 40-45% with free status and all that can really be a big trigger for the company though investors have really lost a lot of money and there has been a lot of time lag in the receipt of this order. But I am hopeful that this two things Egypt electronic gate order and the anti-collision order expected to flow in from Indian Railway will take the share on a different trajectory and in one year