Shares of HBL Engineering, a battery maker and developer of train collision avoidance system, surged over 11.5 percent on April 1 after the company confirmed receiving Letters of Acceptance (LoA) for five contracts from the Central Railway to provide the Kavach system.
In an exchange filing, the company on March 31 announced that five contracts related to provision of Kavach systems have a total value of Rs 762.56 crore, and will encompass 413 stations, covering 3,900 km of land. Each of the contracts are scheduled to be completed in 18 months.
This takes the total value of all the Kavach contracts won by the company this year so far to Rs 3,618 crore. Earlier on March 28, HBL Engineering had announced that it has received two Letters of Acceptance for 'Kavach' provision in the name of HBL-Shivakriti Consortium for contracts cumulatively worth Rs 499.68 crore. These include a Rs 244.68 crore contract from Western Railway and Rs 255 crore contract from North central Railway.
Western Railway's contract encompasses the provision of Kavach systems in Viramgam - Rajkot - Okha section of Rajkot division. The other contract is for the provision of Kavach systems on Dholpur - Bina section of Jhansi division of North central Railway.
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HBL Engineering shares have made a strong recovery after hitting a 52-week low of Rs 405 apiece on March 17. The stock has so far surged over 23 percent in the last one month. The stock however is still significantly lower than its 52-week high of Rs 739.65 per share, which it had hit in December last year.
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