HBL Power Systems has reached a new milestone after securing a ₹1,522 crore Kavach order from Indian Railways. This achievement has propelled its stock to an all-time high, delivering an impressive 63.95% return in 2024 so far, as per BSE data.
What is the Kavach Order?
Order Details
- Awarded by: Chittaranjan Locomotive Works.
- Value: ₹1,522.40 crore (excluding taxes).
- Scope: Supply, installation, and commissioning of Train Collision Avoidance System (TCAS) equipment, also known as Kavach, for 2,200 locomotives.
- Timeline: The order will be completed within 12 months from the date of the purchase order.
Stock Market Impact
Performance Highlights
- On the NSE, HBL Power Systems’ stock rose 6.42%, reaching a 52-week and all-time high of ₹739.65 per share.
- On the BSE, it hit a 52-week high of ₹738.65 per share.
- The stock opened today with a 4.32% gain, continuing its upward trend from the last two trading sessions.
What is Kavach?
Kavach is a cutting-edge Train Collision Avoidance System (TCAS) developed to prevent train accidents and ensure passenger safety. It is part of Indian Railways’ modernization initiatives and functions as an Automatic Train Protection System (IRATPS).
Kavach Implementation Plan
- Railway Minister Ashwini Vaishnaw announced plans to equip 10,000 locomotives with Kavach in the next phase.
- Funds Utilization:
- ₹1,547 crore spent on Kavach so far.
- ₹1,112.57 crore allocated for the fiscal year 2024-25.
- In August 2024, Indian Railways floated tenders worth ₹2,700 crore to expand the Kavach system further.
HBL Power Systems’ Growth in 2024
HBL Power Systems has been a star performer in 2024, with its shares delivering 63.95% returns year-to-date. This success is driven by strategic wins like the Kavach order and its focus on providing advanced railway safety solutions.
Peers Gaining Momentum
HBL’s competitor, Kernex Microsystems, also hit a 52-week high of ₹1,524.75 per share on the NSE. The stock has been on a seven-day rally, gaining 40.69% in this period.
A Promising Future for Railway Safety
The Kavach order highlights HBL Power Systems’ critical role in Indian Railways’ safety modernization efforts. As the government accelerates its initiatives for safer railways, HBL Power Systems is well-positioned for continued growth.
Stay tuned for more updates on HBL Power Systems and its journey to transform India’s railway infrastructure!
