A major order win on Monday, December 16 caused HBL Power Systems, a major participant in the battery and power systems industry, to have its shares jump 6.5% in intraday trading to a new all-time high of ₹739.65 per share.
The business notified investors via an exchange filing on Saturday that it has obtained an order from Chittaranjan Locomotive Works for ₹1,522.40 crore.
The order is for the provision, setup, and commissioning of locomotives equipped with Train Collision Avoidance System (TCAS) (KAVACH) technology.
The Automatic Train Protection System (IRATPS) or Train Collision Avoidance System (TCAS) are other names for KAVACH, a cutting-edge safety technology intended to reduce train collisions and improve operating safety.
Specialized batteries and electronic solutions are designed, developed, and manufactured by the company. In addition, the business offers services associated with its goods. Batteries, electronics, and defence are its three main business verticals.
According to the company website, it is the only Indian firm with pure lead battery technology, the third-largest telecom battery maker in India, and the second-largest nickel-cadmium battery manufacturer in the world.
The company’s key products in the electronics business area include the Train Management System (TMS), which maximizes track use, and the TCAS, which improves safety.
The company is well-positioned to profit from the Government of India’s current emphasis on modernizing railways through significant infrastructure spending and rail safety. Making Indian Railways a world-class organization has been a top priority for the government.
The Railways have been allotted a record capital expenditure (Capex) of ₹2,62,200 crore for the 2024–25 fiscal year.
The company’s shares have soared from ₹360 per share to the current trading price of ₹708 per share during the last 12 months, representing an astounding 97% gain. With a remarkable return of 990% over the last three years and an incredible 4391% over the last five, long-term investors have seen even more amazing profits.
In CY20, CY21, CY22, and CY23, the stock recorded notable increases of 160%, 53%, 67%, and 312%, respectively, demonstrating its constant positive yearly returns.
The stock has continued to rise since the beginning of this year, rising 63% from 106 to its current value.
