HBL Power shares continue to rally, gain 6% amid surge in power stocks

Shares of HBL Power Systems were trading at Rs 263.65, around 5 percent higher at open on the NSE. By mid-day, the stock was trading at Rs 266.30, up by over 6 percent. Other power stocks including NTPC, NLC India, NHPC, and others were also trading higher by up to 4-5 percent.

Earlier this month, HBL management during an analyst meet said that it was on track to achieve its revenue and margin guidance for the year. Over the last six months, the stock has gained over 183.15 percent.

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According to analysts at InCred, HBL Power will benefit from defence sector indigenization, but will continue to prioritise investment in the railway business. HBL was recently awarded orders over Rs 2,000 crore for a Train Collision Avoidance System (TCAS), covering 3,000 km.

For the quarter ending June 2023, HBL power reported net sales of  Rs 467.43 crore, up by 46.21 percent from June 2022. Net profit also grew 158.24 percent Rs. 51.73 for the same period. Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the June quarter stood at Rs. 80.64 crore, up by 110.6 percent from Rs. 37.54 crore in June 2022.

HBL Power systems provides battery and engineering solutions and services to “system integrators, EPC’s, railway, aviation and defense companies”. It also partners with the Indian Airforce, Indian Navy and Indian Railways.

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