This Leading Battery stock, which deals in the business of manufacturing and servicing different types of batteries, e-mobility, and other, is in focus after receiving LoA from West Central Railway for KAVACH worth ~Rs. 148 crore.
Share Price Movement
In Tuesday’s trading session, HBL Engineering‘s share price was up by 4.67 percent touching the day’s high of Rs. 444.40. The stock reiterated from the day’s high and was trading at Rs. 433.95 which is 2.21 percent higher from the previous close of Rs. 424.55 per share.
In the past year, the stock has delivered 31 percent negative returns and has underperformed the Nifty Index in the same period.
What Happened
The company’s stock is in focus after HBL Engineering filing revealed that they have received an Letter of Acceptance (LoA) from the Bhopal Division of West Central Railway in the name of HBL-Shivakriti Consortium for an order worth Rs. 148.44 crore for provision of KAVACH in Binaltarsi – Jujharpur section, BPL – SHRN section and UP and DN flyover track from Jujharpur to Powarkheda of Bhopal Divison over West Central Railway.
Financials
In its latest filing for the quarter ending December 2024, the company reported a 24.70 percent decline in revenue, reaching Rs. 451 crore compared to Rs. 599 crore in Q3FY24. During the same period, net profit declined by 17.72 percent to Rs. 65 crore in Q3FY25, compared to Rs. 79 crore in Q3FY24.
Business Segments
HBL Engineering earns around 74.73 percent from the Industrial Batteries followed by 12.02 percent from Defence & Aviation Batteries, 9.85 percent from Electronics and the remaining 3.38 percent from Others for the December 2024 quarter.
They earn the majority of their Operating Profit from Industrial Batteries, followed by Defence, Electronics segment, and the Others segment is under loss for Q3FY25.
Order Book
The company has an order book of Rs. 1,178.75 crore as of 31st August 2024. It comprises TCAS or TMS, Nickel-Cadmium and Sintered Batteries, Submarine, Silver Zinc, and Lithium Batteries, Railway Signalling works, and defence electronics as per Care Ratings report dated 03rd October 2024.
Market Leader
HBL stands 2nd in the industrial nickel batteries segment and 3rd in VRLA lead batteries segment in India.
Company Profile
HBL Engineering Ltd, formerly HBL Power Systems, is an India-based company specializing in manufacturing batteries, e-mobility products, and electronics. It serves sectors like defence, railways, and telecom, with a strong presence in India and international markets.
Written by Santhosh S
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