HBL Power Shares In Focus After Securing Rs 15 Bn KAVACH Order
18 Dec 2024 CW Team
HBL Power Systems shares will remain in focus after the company announced an order worth Rs 1,522.40 crore from Chittaranjan Locomotive Works (CLW) for the supply, installation, and commissioning of the KAVACH Train Collision Avoidance System (TCAS) equipment in locomotives.
The company stated in its filing, "We would like to inform you that an order worth Rs 1,522.40 crore (plus applicable taxes) has been received from Chittaranjan Locomotive Works for the supply, installation, and commissioning of on-board TCAS (KAVACH) equipment in locomotives."
The order includes the installation of KAVACH systems on 2,200 locomotives and is expected to be completed within 12 months from the date of the purchase order.
HBL Power Systems reported a 27.1% year-on-year increase in consolidated net profit for Q2 FY25, reaching Rs 8.7 billion compared to Rs 686.7 millionin Q2 FY24. However, revenue from operations declined by 6.4% to Rs 5.20 billion for the quarter ended 30 September 2024.
On Friday, HBL Power Systems shares closed at Rs 695.3, up 3.5% on the BSE, while the benchmark Sensex surged 1.04%. The stock has gained 59%so far in 2024 and 540% over the past two years, with the company’s market capitalization now at Rs 192 billion. Technically, the stock's relative strength index (RSI) is at 72.6. According to Trendlyne, RSI above 70 is considered overbought. This implies that stock may show pullback. Additionally, the MACD is at 22, which is above its center and signal Line, this is a bullish indicator.The stock is trading below its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs) while trading above SMAs