Synopsis: Shares of leading battery solutions provider rose 5% after securing an Rs. 800 crore Kavach contract from Banaras Locomotive Works for the supply, testing, and commissioning of indigenous train protection systems, to be executed within 12 months.
The shares of this company are engaged in the first OEM to demonstrate and later certify the advanced Kavach v4.0 system, designed to protect trains running at speeds, which are now in the spotlight after it rose by 5% following securing a major order.
With a market capitalisation of Rs. 22,293 cr, the shares of HBL Engineering Ltd were trading at Rs. 803 per share, jumping 5% in today’s market session, making a high of Rs. 817.25, up from its previous close of Rs. 779 per share.
The stock has gained 66% over the past year, though it is down 13% on a year-to-date basis. Over the last six months, it has risen by 17%, while in the past month it has declined by 7%.
About the order
HBL Engineering Limited has informed about the receipt of a significant order from Banaras Locomotive Works (BLW), Varanasi, where BLW has issued a Letter of Acceptance to HBL Engineering Limited for the supply, testing, and commissioning of On-board Kavach equipment (Version 4.0). The total value of the contract is Rs. 800.36 crore, and it is to be executed within a period of 12 months.
Recently, HBL Engineering Limited has secured a Rs. 575 crore order from Integral Coach Factory, Chennai, for the supply, testing, and commissioning of onboard Kavach version 4.0 equipment. The domestic contract is to be executed within 12 months.
Additionally, Cochin Shipyard Limited has approved a proposal to form a domestic joint venture with HBL, in which HBL will hold 60% and CSL 40%. The JV will focus on developing electric mobility technology and energy storage solutions for the marine sector, targeting both domestic and global markets.
HBL Engineering Limited is an Indian engineering company engaged in the design, manufacture, and supply of advanced engineering products and solutions, with a strong presence in sectors such as defence, railways, power, and industrial electronics. HBL is particularly known for its expertise in batteries, power electronics, and safety-critical systems.
It shows strong financial strength with an ROCE of 27.3% and an ROE of 20.6%. It has a debt-to-equity of 0.04 and has further reduced its debt. With a PEG ratio of 0.57 and profit growth of 64.6% CAGR over the last five years, the company reflects healthy growth and efficiency.
On a year-on-year basis, the company has delivered strong financial growth. Sales increased by 94%, rising to Rs. 874 crore in Q3FY26 from Rs. 451 crore in Q3FY25. EBITDA saw a sharp growth of 223% to Rs. 302 crore compared to Rs. 93.6 crore a year ago. Net profit surged by 240% to Rs. 220 crore from Rs. 64.7 crore, while EPS also grew by 242% to Rs. 7.96 from Rs. 2.33, reflecting robust operational and earnings performance.
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