Kavach stock has attracted attention following the company’s increasing capacity and expanding order book. The latest developments highlight the company’s efforts to strengthen its position in the market, with a growing value of orders, including significant contracts for train collision avoidance systems and other projects.
Share Price Movement
In Friday’s trading session, HBL Engineering Ltd’s share price rose by 3.5 percent, hitting an intra-day high of Rs.633.55 per share, up from the previous close of Rs.626.75 per share. The shares have since retreated and closed at Rs.625.85 per share. Over the past five years, the stock has delivered over 4,000 percent returns.
Order Book
As of December 2024, HBL Engineering Limited’s total order book stands at Rs.2,701.15 crore. This includes Rs.1,178.75 crore from various projects such as batteries, railway signaling, and defence electronics, along with a significant Rs.1,522.40 crore contract for the supply and installation of On-Board Train Collision Avoidance System (TCAS) (KAVACH) equipment for 2,200 locomotives.
Sector Development
HBL Engineering is among the select railway companies engaged in the KAVACH orders for Indian Railways, alongside other firms like KEC International, Kernex Microsystems, RailTel, and Siemens. The combined estimated value of the KAVACH and LTE orders stands at Rs.30,000 crore.
Capacity Expansion
HBL is investing approximately Rs.100 crore ($12 million) in FY25 to develop high energy density lithium-ion cells in-house, focusing primarily on defense applications in line with India’s growing defense budget and self-reliance initiatives.
Additionally, the company is enhancing its manufacturing capacity for electronic systems and implementing lean manufacturing strategies to boost productivity. These efforts also include increasing inventories of electronic components to address supply chain challenges.
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Financials
According to its recent financial updates, HBL Engineering Ltd reported consolidated revenue of Rs.521 crores in Q2 FY25, marking a 7 percent decrease from Rs.557 crores in Q2 FY24. In addition, the company saw its net profit rise 30 percent to Rs.87 crores, compared to Rs.68 crores in the same period last year.
Shareholding Pattern
As per the shareholding pattern for September 2024, the promoters of HBL Engineering Ltd hold a 59.10 percent stake, while Foreign Institutional Investors (FIIs) own 4.91 percent. Domestic Institutional Investors hold 0.96 percent and Retail investors hold 29.37 percent of the company’s shares.
About the Company
HBL Engineering Ltd, formerly HBL Power Systems, is a prominent manufacturer of specialized batteries and power systems headquartered in Hyderabad, India.
The company was formed in 1999 through the merger of Hyderabad Batteries Ltd and SAB Nife Power Systems Ltd. Since then, it has become a key player in the battery and power electronics industry, catering to sectors such as telecom, railways, and defense.
Written by – Siddesh S Raskar
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