HBL Engineering Share Price Jumps 5% on Securing Indian Railways’ Kavach Orders

Market Performance

HBL Engineering's share price surged 5.04% in early trade on Monday, touching ₹619.75 apiece on the BSE.

• At 10:00 AM, the stock was trading 1.90% higher at ₹601.20.
• Market capitalization stood at ₹16,662 Crore.

Over the years, HBL Engineering's share price has shown significant growth:

• 3-month gain: 45%
• 1-year gain: 26%
• 2-year return: 316%
• 5-year rally: 4,000%
• YTD performance: down 5%

Main News

HBL Engineering has bagged major contracts from South Central Railway for implementing and upgrading Kavach—a train collision avoidance system.

Key Highlights:

• Received letters of acceptance (LoA) for two major projects
• Projects involve the implementation and upgradation of Kavach across different railway sections

1. Kavach Implementation Contract

• Coverage: 48 stations, 446 kilometers of track, 10 locomotives
• Section: Vijayawada – Ballarshah
• Contract Value: ₹132.95 Crore (inclusive of 18% GST)
• Timeline: 18 months

2. Kavach Upgrade Contract

• Scope: Upgrade from Version 3.2 to 4.0
• Coverage: Mudkhed Section, 350 kilometers
• Contract Value: ₹30.67 Crore (inclusive of 18% GST)
• Timeline: 24 months

Company Details

HBL Engineering has established a strong foothold in the railway automation sector with a robust order pipeline.

• As of June 2024, the company reported an accumulated order book of ₹4,029.05 Crore.
• The company's strategic focus on rail safety solutions, like Kavach, continues to fuel investor interest.

Summary of the Article

• HBL Engineering's share price rose by 5% following the announcement of new contracts from Indian Railways.
• Two separate projects awarded by South Central Railway are valued at over ₹163 Crore combined.
• The stock has delivered 4,000% returns in five years, making it a standout multi-bagger.
• With a solid order book and strong historical performance, HBL Engineering's share price remains the focus of investors.