Low PE, High ROCE Stock: Lithium Battery Manufacturer Secures Rs 1,714 Crore KAVACH Order; FII Stake Increases

On Friday, the Indian equity benchmarks opened lower, with the benchmark Nifty 50 index trading at 23,890.50, down 16.65 points or 0.07 per cent during the morning session. Railway and infrastructure stocks remained in focus amid fresh order announcements. In this segment, HBL Engineering share price was trading at Rs 830.25, up 1.56 per cent from the previous close of Rs 817.50 as of 9:45 AM on May 29, 2026.

HBL Engineering Secures Rs 1,714 Crore Railway Order

HBL Engineering Limited announced that it has received a Letter of Acceptance from Chittaranjan Locomotive Works (CLW) for the supply, installation, testing and commissioning of On-board KAVACH Loco Equipment (Version 4.0) worth Rs 1,714 crore, excluding 18 per cent GST.

The order has been awarded by Chittaranjan Locomotive Works, a domestic entity under Indian Railways, and is scheduled to be executed within a period of 12 months.

Order Strengthens Railway Safety Portfolio

The scope of the contract includes end-to-end delivery, installation, testing and commissioning of On-board KAVACH systems for locomotives. The project adds a significant railway safety order to the company's existing order book and further strengthens its presence in railway signalling and safety solutions.

KAVACH is an indigenous Train Collision Avoidance System being deployed by Indian Railways as part of its railway safety modernisation programme. The technology is designed to improve operational safety by preventing collisions and enhancing train movement monitoring across the rail network.

HBL Engineering Clarifies Transaction Details

HBL Engineering stated that none of its promoters, promoter group entities or group companies have any interest in the awarding entity. The company also clarified that the transaction does not fall under the related party transaction category.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Shareholding And Stock Performance

HBL Engineering was trading at Rs 830.25 on May 29, 2026, at 9:45 AM, compared with the previous close of Rs 817.50, reflecting a gain of 1.56 per cent during the session.

The stock has delivered returns of 43.50 per cent over the last one year, 60.11 per cent over two years and 675.62 per cent over three years. The stock's 52-week high and low stood at Rs 1,099.50 and Rs 557.50 respectively. Foreign institutional investor holding increased to 5.94 per cent from 5.87 per cent, while domestic institutional investor holding declined to 0.79 per cent from 0.82 per cent.

About HBL Engineering

HBL Engineering Ltd, formerly known as HBL Power Systems Limited, designs, develops and manufactures specialised batteries, electronics and engineering products for industrial, defence, aviation and railway applications. The company reported a Return on Capital Employed (ROCE) of 58.4 per cent and trades at a Price-to-Earnings (P/E) ratio of 27.5, reflecting strong profitability and efficient capital utilisation.

Headquartered in Hyderabad, the company has a significant presence in railway safety and signalling systems, including KAVACH and Train Management Systems, and serves customers across 59 countries through its subsidiaries and associates.

Do you think HBL Engineering's latest KAVACH order can strengthen its railway safety business? Share your views in the comments.
Disclaimer: This article is for informational purposes only and not investment advice.