HBL Power rallies 10%; hits new high after nearly 7% equity changes hands

Till 02:50 PM; a combined 19.2 million equity shares, representing 6.9 per cent of total equity of HBL Power, had changed hands on the NSE and BSE

Shares of HBL Power Systems (HBL) rallied 10 per cent to hit a record high of Rs 132.55 on the BSE in Tuesday’s weak intra-day trade on the back of heavy volumes. In the past two trading days, the stock of the auto components & equipments company has zoomed 18 per cent.

Till 02:50 PM; a combined 19.2 million equity shares, representing 6.9 per cent of the total equity of HBL Power, had changed hands on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.25 per cent at 62,615.

HBL specializes in developing and manufacturing products and solutions for telecom, industrial, railways and defence applications. The company has seven fully integrated facilities manufacture batteries, electronics and engineered products based on in-house developed technologies. 

Over the years, HBL has established itself as one of the leading players engaged in development and manufacturing of batteries, electronics and engineered products based on in-house developed technologies.

The company’s product portfolio mainly caters to niche sectors namely telecom, UPS, solar, defence and railways in India. The battery vertical is one of the major revenues spinners for the company followed by the electronics segment.

The company is one of the largest manufacturers of Ni-Cad batteries which have diverse industrial applications. HBL has also started focussing on electronic and engineering products for the defence and railways.

In the electronics vertical, the company’s Train Collision Avoidance System (TCAS) continued to gain traction. The company had won contract from the Eastern Railway for deploying TCAS over 260 km and 120 locomotives on Delhi Howrah route in FY23. Further, the team successfully installed the TCAS solution across 347 km of network in South Central Railway.

In 2021, Indian Railways announced the adoption of TCAS as India’s national Automatic Train Protection (ATP) System and re-christened it as Kavach.

This vertical is expected to emerge as the key business and profitability driver over the coming years. 

The government has also announced their plan to deploy Kavach over 34,368 km of track, covering high density and highly utilised routes, targeting the completion of this ambitious plan by 2026.

The other major opportunity for Kavach (TCAS) is Vande Bharat Trains (Train 18), another flagship project of the Indian Railways. The Railways has decided to equip all new Vande Bharat Trains being produced with TCAS on board in the railway factory itself.