HBL Engineering stock jumps to its lifetime high after 1,522 cr order win

Shares of HBL Engineering hit their all time high level at Rs 738.65 per share on the BSE, surging as much as 6.22 per cent in Monday’s intraday deals. This came after the company said that it has secured an order worth Rs 1,522 crore. 

 

“We would like to inform you that an order worth Rs.1,522.40 Crores (plus applicable taxes extra) has been received from "Chittaranjan Locomotive Works" for supply, Installation and Commissioning of on-Board Train Collision Avoidance System (TCAS) (KAVACH) equipment in locomotives,” the company said in an exchange filing on Saturday.

 

The company said that the order will be completed within 12 months from the date of issue of the purchase order. 

 

HBL Engineering operates its business through three primary verticals: battery, electronics, and defence. Within the electronics business vertical, there are further sub-divisions into railway electronics and electric mobility.

 

HBL Engineering reported a revenue of Rs 533.38 crore for second quarter of the financial year 2024-25 (Q2FY25), compared to Rs 525.59 crore in first quarter of 2024, reflecting a growth of 1.48 per cent. The company's earnings before interest, tax, depreciation and amortisation (Ebitda) for September 2024 stood at Rs 120.97 crore, up from Rs 115.9 crore in June 2024, marking a growth of 4.37 per cent. Net profit for the company in September 2024 was Rs 76.01 crore, slightly up from Rs 75.85 crore in June 2024, showing a modest growth of 0.21 per cent.

 

Meanwhile, on the equities side, HBL Engineering’s stock has underperformed the market year to date as it has surged 48 per cent, while rising 51 per cent in the last one year. In comparison BSE Sensex has risen 6 per cent year to date and 14 per cent in a year. 

 

The company has a total market capitalization of Rs 19,682.23 crore. Its shares are trading at a price to earnings multiple of 62.26 times and at an earning per share of Rs 10.88. 

 

At 10:10 AM; the shares of the company were trading 1.82 per cent lower at Rs 708 a piece. By comparison, the BSE Sensex was trading 0.18 per cent lower at 81,981.67 level.