The shares of this company, which has its footprints on the manufacturing of batteries, surged over 10 percent after it obtained a key approval from the Research Designs and Standard Organization (RDSO).
With a market capitalization of Rs 15,412 crores, the shares of HBL Engineering Ltd are currently trading at Rs 556 per share, down by 24.8 percent from its 52-week high of Rs 664.45 per share. In the last one month, the stock has delivered a return of 6.69 percent.
About the announcement
On Wednesday, HBL Engineering announced that it had received the approval for Version 4.0 of the Kavach Systems, making it the first company to ever receive this key approval. It also mentioned that it can now begin the deliveries of Kavach System (Version 4.0) against a total accumulated order book of Rs. 3,763.83 Crores which shall be executed within 24 months.
HBL Engineering is one of the few companies engaged in the execution of Kavach orders of Indian Railways, along with others such as KEC International, Kernex Microsystems, RailTel, and Siemens. Kavach, which has been developed by RDSO in association with Indian industry, is a futuristic safety system that will prevent train accidents and enhance overall railway safety.
Financial Highlights
The company reported a revenue decline of 24.7 percent to Rs 451 crores in Q3 FY25 from Rs 599 crores in Q3 FY24. Additionally, its net profit also recorded a decline of 17.72 percent to Rs 65 crores in Q3 FY25 from Rs 79 crores in Q3 FY24.
It delivered an ROE and ROCE of 27.73 percent and 35.94 percent, respectively, and is currently trading at a P/E of 46.77x, much higher than its industry average of 24.82x.
About the company
HBL Engineering Limited produces batteries, power electronics, and spun concrete products for Indian and overseas markets. The company operates in Batteries and Electronics segments, distributing lead acid, nickel-cadmium, silver zinc, and lithium batteries. HBL Engineering also offers railway signaling systems, train safety systems such as Kavach, power supplies, and e-mobility parts. It caters to industries like transportation, telecom, oil & gas, and power.
Written by Satyajeet Mukherjee
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