The shares of prominent battery and power systems manufacturers gained up to 12 percent after the company secured a prestigious work order from the Central Railways for Rs 762.56 crores.
Price Movement
With a market capitalization of Rs 14,522.24 crore, the shares of HBL Engineering Ltd were trading at Rs 526.30 per share, increasing around 11 percent as compared to the previous closing price of Rs 472.15 apiece.
Reason for Rise
The shares of HBL Engineering Ltd have seen positive movement after securing five letters of acceptance from Central Railway for the provision of the Kavach across 413 stations covering 3,900 Kms. The total value of all 5 five contracts is Rs 762.56 crore.
Previous Order
Recently, HBL Engineering Ltd received two Letters of Acceptance (LOAs) for providing KAVACH systems, which a safety systems for trains, in a section of Western Railway (Viramgam-Rajkot-Okha) and in a section of North Central Railway (Dholpur-Bina).
The combined value of both projects is Rs 499.68 Crores, with Rs 244.68 Crores for the Western Railway project and Rs 255 Crores for the North Central Railway project. The Western Railway project is to be completed within 730 days, and the North Central Railway project is to be completed within 700 days. HBL Engineering Ltd has received these LOAs in association with Shivakriti International, where HBL is the lead member of a consortium.
Also read: Avantel Ltd jumps over 4% after receiving ₹11 Cr supply order from Goa Shipyard
Financials
The company reported a decline of 24.8 percent YoY in revenue from operations from Rs 599 Crore in Q3FY24 to Rs 451 Crore in Q3FY25. Their Net profits also declined by 20 percent YoY from Rs 79 Crore to Rs 65 crore over the same period.
Ratio analysis
The company’s critical ratios show that the return on equity increased from 10.36 percent in FY22-23 to 23.01 percent in FY23-24, while the return on capital employed increased from 13.25 percent to 31.80 percent. The net profit margin (NPM) for fiscal year 23-24 is 11.76 percent.
Company Profile
HBL Power Systems is the pioneer in the design, development, and manufacture of specialized batteries and DC systems in India. The product range of the company includes Batteries – Nickel Cadmium, Lead Acid, Lithium, and Silver Zinc. Electronics – Railway Electronics, Defence Electronics, and Thyristor control Rectifiers.Others – Anti Infra Red Coating.
Written by Abhishek Singh
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