Shares of HBL Engineering Ltd. rallied nearly 6%, reaching a day’s high of Rs 739.65 on 16th December, after the company announced it had bagged an order from Chittaranjan Locomotive Works.

HBL Engineering announced in an exchange filing that it secured an order to supply, install, and commission the onboard Train Collision Avoidance System (TCAS), also known as KAVACH.

The order involves installing the system in 2,200 locomotives and must be completed within 12 months of the purchase order date.

The order is valued at Rs 1,522.4 crore, excluding applicable taxes.

HBL Engineering is among the few railway companies working on KAVACH projects for Indian Railways, alongside firms like KEC International, Kernex Microsystems, RailTel, and Siemens.

Kernex Microsystems recently won a KAVACH order exceeding Rs 2,000 crore, which is more than its entire market capitalisation.

The estimated opportunity for KAVACH and LTE orders is Rs 30,000 crore.

So far in 2024, HBL Engg’s shares have risen significantly by nearly 63%. Currently, the company’s market capitalisation stands at around Rs 19,833 crore.

At 11:11 AM, the shares of HBL Engineering were trading 2.96% higher at Rs 715.60 on NSE.

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