HBL Power Systems stock jumps over 10% to 6-week high on securing ₹762 crore Kavach orders

Stock market today: HBL Power Systems, a leading player in the battery and power systems sector, saw its shares surge by 10.3% in intraday trade on Tuesday, April 01, reaching a six-week high of ₹520.65 per share following multiple orders from Central Railway.

On Monday, the company informed investors through an exchange filing that it had secured five Letters of Acceptance for the provision of Kavach across 413 stations, covering 3,900 kilometers. Each contract should be completed within 18 months, with the total value of all five contracts amounting to ₹762.56 crore (inclusive of 18% GST), as per the filing.

This was the company's third order win in March. On Friday, the company stated that the HBL-Shivakriti Consortium had received two Letters of Acceptance from Western and North Central Railway.

The first order was for the provision of Kavach in the Viramgam – Rajkot – Okha Section of Rajkot Division, Western Railway, while the second was for the Dholpur – Bina Section of Jhansi Division, North Central Railway. Both projects are expected to be completed in over 700 days, with a combined value of ₹500 crore.

Earlier in March, the consortium received a Letter of Acceptance from the Bhopal Division for an order worth ₹148.44 crore (inclusive of 18% GST) for the provision of Kavach in the Bina-Itarsi-Jujharpur section, BPL-SHRN section, and the UP and DN flyover track from Jujharpur to Powarkheda of the Bhopal Division, West Central Railway.

In mid-December, the company had won a similar order from Chittaranjan Locomotive Works, valued at ₹1,522.40 crore.

KAVACH, also known as the Train Collision Avoidance System (TCAS) or Automatic Train Protection System (IRATPS), is an advanced safety solution designed to prevent train collisions and enhance operational safety

Stellar performer

Despite a sharp pullback from recent highs, the stock has delivered an impressive 441% gain over the last two years and 741% over the last three years. Looking at its annual performance, the stock has consistently generated positive returns, recording significant gains of 160% in CY20, 53% in CY21, 67% in CY22, 312% in CY23 and 43% in CY24.

However, amid a broader market sell-off, the stock has faced heavy profit booking this year, causing it to trade 30% below its recent high of ₹739.45 per share.

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