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- This Smallcap Has 4x In Last 6 Months!
This Smallcap Has 4x In Last 6 Months!
Tale of the Tape
Hiya everyone!
Nifty (-0.4%) and Sensex (-0.3%) ended firmly in the red after a couple of flat sessions due to heavyweight selling. Midcaps (-0.5%) and Smallcaps (-1%) also took a beating. 363 stocks in the NSE 500 ended lower.
Except IT (+0.8%) and Metals (+0.3%), all other sectors ended in the red. FMCG (-1.1%) and Oil & Gas (-0.9%) were the top losers.
Kernex Microsystems has been locked in an upper circuit for the last 5 trading sessions. Read our top story to understand WTF is going on here!
It’s not all doom and gloom. Mutual funds are buying amidst a FII firesale. More details below on the top stocks snapped up and sold in November.
IT stocks held their ground despite a broader selloff. Sai Life Sciences IPO is open for subscription. More details below.
Vedanta (+1%) will consider its fourth interim dividend on December 16.
Concor fell -4% after Goldman slashed its target price, projecting a -13% downside from current levels!
Block deal reactions. Nuvama Wealth (-5%) fell after 30 lakh shares (8.4% stake) changed hands; reports say Edelweiss was the likely seller. Neuland Labs also cracked -6% after 4.9 lakh shares (3.8% equity) was traded; reports say Smallcap World Fund was the seller.
Gopal Snacks cracked -7% after a major fire broke out at its Rajkot manufacturing plant.
GHCL gained +5% after the GOI granted environmental clearance for its soda ash project in Gujarat.
Here are the closing prints:
Nifty | 24,549 | -0.4% |
Sensex | 81,290 | -0.3% |
Bank Nifty | 53,216 | -0.3% |
Stock
Full Steam Ahead!
Kernex Microsystems has been on FIRE! The stock is up +4x in the last six months alone. We don’t blame you if you’ve never heard of it. The company has come out of nowhere with a strong Railways story. Here’s what you need to know.
FYI - Kernex makes & maintains anti-collision devices. For most of the last decade, it’s not been doing too well. In fact: its reported losses for the last three straight years! This is mostly because the company’s secret sauce is railway safety & signal systems. India has flirted with this idea of making its trains a lot safer, but didn’t really take solid steps until last year after a series of accidents.
ICYMI - the GOI spent only ~500 cr on the ‘Kavach’ safety system in 2023. In FY25, the budget has more than doubled to Rs 1,112 cr. Luckily for Kernex, it's one of three vendors for Kavach. In fact, the firm has been pivotal in helping build the underlying tech behind how it works! So, just how big is the opportunity here? Well, if the GOI rolls Kavach out completely, the total cost will be Rs 45,000 cr!
We’re starting to see Kernex reap the benefits. ICYMI - last week it won a MASSIVE order for supplying & installing 2,500 sets of kavach equipment. The order size was a whopping Rs 2,041 cr, which at the time was higher than Kernex’s market cap lol.
The company is also scaling up big time to meet this demand. Its production capacity has jumped from 1,200 units per year to 5,500 units. PS - Kernex’s management recently said its also bid for orders worth Rs 900 - 1,000 cr in station equipment tenders and expects to know whether it wins them or not by March 2025!
What’s your view on the stock? |
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