New Delhi: The stock price of Kernex Microsystems (India) Ltd turned volatile since its CEO, K Satyanarayana Raju, resigned just days before the end of the current financial year. After falling for the past five consecutive trading sessions, Kernex Microsystems managed to rise by 5% to close at Rs 237.10 on Tuesday and opened in green on Wednesday.
The volatile stock has been sailing in choppy waters on account of losses during the past three quarters and now the abrupt exit of the CEO before the end of the financial year-end. The board of directors relieved Raju on the same day as his resignation, on March 20, ‘due to his personal reasons’. The company’s disclosure on the stock market on March 20 did not reveal its future plans or the interim arrangement. This lack of clarity has puzzled the investors about the future of this loss-making entity.
While Kernex Microsystems bagged orders worth close to Rs 500 crore in consortium with KEC International Limited during the current fiscal, it has failed to report a profit in the past nine months with no sign of turning green in the current fiscal. In the previous financial year too, Kernex Microsystems had reported a net loss of Rs 16.5 crore.
On Monday, its stock price had touched the lower circuit of Rs 222.25 before closing at 229.95 on NSE. Kernex Microsystems’ share price has corrected by over 15% in the past five trading sessions till Monday before hitting the upper circuit on Tuesday.
In the past 52 weeks, the share price of Kernex Microsystems witnessed a low of Rs 140 and a high of Rs 389.90 following the orders the company bagged.