2,900 Per Cent Returns: Railway KAVACH Company Bags Order Worth Rs 148,44,00,000 from West Central Railway

The stock gave multibagger returns of 650 per cent in 3 years and a whopping 2,900 per cent in 5 years.

HBL Engineering Limited, formerly HBL Power Systems Limited, has announced the receipt of a Letter of Acceptance from the Bhopal Division of West Central Railway, awarding the HBL-Shivakriti Consortium, with HBL as the lead member, a domestic order valued at Rs 148.44 crore (inclusive of 18 per cent GST). This contract entails the provision of KAVACH, an automatic train protection system, across the Bina-Itarsi-Jujharpur section, the BPL-SHRN section, and the UP and DN flyover track from Jujharpur to Powarkheda within the Bhopal Division of West Central Railway. The project is slated for completion within 540 days.

Earlier, the Ahmedabad Division of Western Railway has awarded a Letter of Acceptance for Rs 410.42 crore (inclusive of GST) to the HBLShivakriti Consortium, with HBL Power Systems Limited (now HBL Engineering Limited) as the lead, partnered with Shivakriti International, for the domestic supply and installation of way-side Kavach across 402 kilometers of the Ahmedabad-Palanpur and Ahmedabad-Samakhiyali sections. This project, which involves significant technical implementation, is to be completed within 730 days from the issuance of the purchase order, representing a substantial commercial undertaking.

About the Company

HBL Engineering Ltd., established in 1983, has cemented its position as a leading innovator in the power systems industry, achieving significant global market share, notably holding the second position in industrial nickel batteries and the third in India's VRLA lead batteries, while uniquely manufacturing PLT lead batteries in the nation. The company's diversified portfolio spans industrial batteries, powering sectors like telecom and oil and gas, with products utilized in Vande Bharat trains and by global entities such as Siemens and Hitachi. Further, their defense and aviation segment provide critical power solutions for military applications, and the electronics division develops cutting-edge technologies like TCAS and TMS, alongside their push into electric mobility with drive trains for heavy-duty trucks, demonstrating a commitment to both technological advancement and sustainable solutions.

The company has a market cap of over Rs 12,000 crore and has delivered a good profit growth of 66.1 per cent CAGR over the last 5 years. The stock gave multibagger returns of 650 per cent in 3 years and a whopping 2,900 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.