'Kavach' train system in spotlight: Kernex Microsystems, HBL Power Systems shares rally up to 10%

Shares of Kernex Microsystems and HBL Power Systems hit their respective upper circuit limits in Monday's trade amid the growing need of further adoption of collision-prevention system following the devastating train collision in Odisha. The railways has said that 'Kavach' was not available on the route where the accident occurred on Friday evening.

Kavach was developed by the Research Design and Standards Organisation under Indian Railways, along with HBL Power Systems, Kernex Microsystems and unlisted Medha Servo Drives.

About 280 people were killed and over 900 injured after three trains collided near Balasore. The horrific accident happened when the Shalimar-Chennai Central Coromandel Express, headed toward Chennai, derailed. It collided with a goods train on the adjacent track. The third train, Bengaluru-Howrah Superfast Express, coming from the opposite direction on the third track, rammed into the derailed coaches.

Railways on Saturday, said the Kavach system was not available on the route, which might have helped in stopping the fateful accident on Friday evening.  “The rescue operation has been completed, now we are starting the restoration work. Kawach was not available on this route,” said Amitabh Sharma, Railways Spokesperson.

Shares of HBL Power Systems climbed 10.32 per cent to Rs 123.90.  HBL Power Systems was the lead member of a consortium with Siemens that signed the first contract under Mission Raftar project last year, with Eastern Railway for deployment of Kavach over 260 kms of track and 120 locomotives, from Howrah to Pradhankhanta last year. The contract price was Rs 286.69 crore including taxes, of which HBL's work share was Rs 205.88 crore; the contract was scheduled to be completed in 700 days.

Shares of Kernex Microsystems jumped 5 per cent to Rs 297.55.

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