With a market capitalization of Rs 3,409 crores, the shares of HBL Power Systems Limited currently trades at Rs 123, zooming around 10 percent as compared to the previous closing price of Rs 112.30.
In the last five trading sessions itself, the stock has gained over 16 percent ranging from Rs 105.80 to the current levels.
Such sharp movements in stock prices are observed as markets discount that the stock will gain traction after the Government prioritizes contracts to deploy the ‘Kavach’ system after the tragic incident in Balasore district, Odisha.
This prioritization will prove to be a boost for the company as it is one of the major companies that provide transport-related equipment and services.
The ‘Kavach’ system is an Automatic Train Protection (ATP) system that is indigenously developed by the ‘Research Design and Standards Organisation’ (RDSO) in collaboration with the Indian industries. It is meant to provide protection by preventing trains from passing the signal at red and avoiding a collision.
HBL Power Systems Limited is engaged in the process of designing, developing, as well as manufacturing different types of batteries which include NiCad, Lithium, Railway & Defence Electronics, etc.
It has a global presence in regions such as Europe, America, and the Middle East. The company generates a majority of its revenue from the ‘Batteries’ segment within India.
As per the latest financial results for FY22-23, the company reported operating revenues of Rs 403 crores in Q4, showing an increase from Rs 332 crores of revenues in the previous quarter.
Moreover, the net profit numbers, during the same period, increased from Rs 23 crores to Rs 35 crores.
According to the March 2023 quarter, Promoters of the company hold a 59.08 percent stake, and Foreign Institutional Investors (FIIs) hold a 0.91 percent stake in the company.
Written by Amit Madnani
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