Kavach Contracts of Rs 3,618 Crore: Railway Kavach Company Bags 5 Orders Worth Rs 762,56,00,000 In Just 1 Day From Central Railway

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Kavach Contracts of Rs 3,618 Crore: Railway Kavach Company Bags 5 Orders Worth Rs 762,56,00,000 In Just 1 Day From Central Railway

The stock gave multibagger returns of 640 per cent in 3 years and a whopping 4,200 per cent in 5 years.

HBL Engineering Limited, formerly known as HBL Power Systems Limited, has been awarded five significant contracts by the Central Railway for the provision of the Kavach system. The total value of these contracts, inclusive of 18 per cent GST, amounts to Rs 762.56 crore. The contracts cover 413 stations and span 3,900 kilometers, with each contract expected to be completed within 18 months. This development brings the total value of Kavach contracts secured by the company during the year to Rs. 3,618 crores. The company has confirmed that none of its promoters have any interest in the awarded contracts, and these transactions do not fall under the category of related party transactions. This strategic win is expected to enhance HBL Engineering Limited's position in the railway electronics segment, contributing to its growth trajectory.

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 provides 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.

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The company has a market cap of over Rs 13,000 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 640 per cent in 3 years and a whopping 4,200 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. 

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