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Check Before You Invest : Kernex Microsystems (India) Ltd

BSE: 532686 NSE: KERNEX ISIN: INE202H01019
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electronics - Components

Snapshot

Q.1 Which industry/sub-sector does Kernex Microsystems (India) Ltd belong to?
Kernex Microsystems (India) Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.
Q.2 Is Kernex Microsystems (India) Ltd a good quality company?
Kernex Microsystems (India) Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Kernex Microsystems (India) Ltd undervalued or overvalued?
Kernex Microsystems (India) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Kernex Microsystems (India) Ltd a good buy now?
Kernex Microsystems (India) Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Kernex Microsystems (India) Ltd?
Kernex Microsystems (India) Ltd revenue growth is 882.6% for FY-2025 , which is above its 5 year CAGR of 67% , indicating faster growth.
Q.2 Gross Profit margin of Kernex Microsystems (India) Ltd?
Kernex Microsystems (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.1% for FY-2025 , which is above its 5 year median of -94.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Kernex Microsystems (India) Ltd?
Kernex Microsystems (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.51% for FY-2025 , which is above its 5 year median of -85.77% indicating increasing margins.
Q.4 Net Profit Margin of Kernex Microsystems (India) Ltd?
Kernex Microsystems (India) Ltd Net Profit Margin is 26.85% for FY-2025 , is above with its 5 year median of -105.74%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 19.1 -94.1
Operating Profit Margin 21.51 -85.77
Net Profit Margin 26.85 -105.74
Q.5 Return on Asset of Kernex Microsystems (India) Ltd?
Kernex Microsystems (India) Ltd Return on Asset is 25.43(x), which is above its 5 year historical median of -14.35(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Kernex Microsystems (India) Ltd?
Kernex Microsystems (India) Ltd Return on equity is 34.6% for FY-2025 , which is above its historical median of -19.06%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Kernex Microsystems (India) Ltd?
Kernex Microsystems (India) Ltd Return on capital employed is 22.32% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Kernex Microsystems (India) Ltd?
Kernex Microsystems (India) Ltd Cash conversion cycle is 86 , below its historical median of 789 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.95 0.14
ROE 34.6 -19.06
ROCE 22.32 -14.37
Cash Conversion Cycle 86 789
Q.9 Debt to Equity ratio of Kernex Microsystems (India) Ltd?
Kernex Microsystems (India) Ltd Debt-to-Equity ratio is 0.23 , which is lower with the industry average of 0.25 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Kernex Microsystems (India) Ltd?
Kernex Microsystems (India) Ltd Debt to cash flow from operations is 3.69 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kernex Microsystems (India) Ltd?
Promoters hold 28.85% of the Kernex Microsystems (India) Ltd, with 8.84% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kernex Microsystems (India) Ltd vs industry peers?
Kernex Microsystems (India) Ltd revenue CAGR is 66.96% , compared to the industry median CAGR of 3.89% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 189.7 41.9
Gross Profit 36.3 5.3
Operating Profit 41 5.2
Net Profit 51 2
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.95 0.79
ROE 34.6 7.33
ROCE 22.32 9.29
Cash Conversion Cycle 86.45 121

Valuation & price assessment

Q.1 Stock return of Kernex Microsystems (India) Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 42.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 42.8% 86.1% 70.8% 40%
Q.3 Valuation ratios of Kernex Microsystems (India) Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 40.34 3.63 44.31
Price to Book 10.22 0.46 4.02
Price to Sales 7.71 9.89 4.15
EV to EBITDA 34.33 2.11 23.98

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