railway stock
Best Indian Railway Stocks: Placing the right bet at the right time in the stock market is the biggest key to success. In the last five years, one such company has completely changed the fortunes of investors, whose name is HBL Engineering. The company which once mainly manufactured industrial batteries, has today become an important part of Indian Railways’ most ambitious ‘Kavach’ project. This big change caused such a tremendous rise in the company’s shares that investors got a handsome return of more than 1385 percent. If you had expressed confidence in the shares of this company five years ago, today your invested amount would have increased manifold. But is it still wise to invest in this stock after such a huge surge?
The story of making batteries and becoming the pride of railways
When HBL Engineering was started in the year 1983, its main focus was to manufacture special types of batteries for railways, defence, telecom towers and power sectors. The scope of business increased with time. The company also entered the field of lithium batteries, defense batteries, aviation batteries as well as industrial electronics. However, all this was part of the general development of the company. The real game-changer proved to be the moment when the management turned its full attention towards the railway signaling business and specifically the ‘Kavach’ system. This precise decision took the company from being a simple battery manufacturer to one of the leading companies in the railway technology sector.
Indigenous security system proved to be the real engine of growth
Kavach is an indigenous technology developed by Indian Railways, which has been meticulously designed to prevent fatal train collisions. This system is installed directly in the railway track and train engine (locomotive). When a loco pilot accidentally crosses a red signal or due to some technical glitch two trains on the same track come within a dangerous distance, this modern technology automatically applies brakes. By this, big accidents are easily averted. In the coming time, Railways is working rapidly on the plan to implement this security cover on thousands of kilometers of rail routes across the country. Very few companies in the market have received approval to supply this special technology, one of which is HBL Engineering. Due to this monopoly like situation, the company is continuously getting big orders and Dalal Street’s eyes are fixed on it.
Investment opportunity amidst profits or big risk?
Financial year 2026 has proved to be historic for this company on every financial scale. According to the report of Financial Express, the consolidated revenue of the company jumped to Rs 3303 crore, while the net profit was recorded at a record level of Rs 814 crore.
If we look at the performance of the share, the share which was being sold for only around Rs 55 in July 2021, became worth around Rs 817 by July 7, 2026. Despite this huge jump, the stock is still priced at about 27 per cent cheaper than its all-time high of Rs 1122. Today i.e. on Thursday, during intra-day trading, it was seen trading at Rs 762 with an increase of 0.71 percent.
The biggest strength that the company has at present is its strong order book. It has received the largest ever onboard armor order of Rs 1710 crore in May 2026, which is to be completed within 18 to 24 months. The best part is that the company is almost debt free and has enough cash to expand its operations. However, market experts believe that investors should also understand the risks. A large part of the company’s earnings is now completely dependent on railways and armor projects. If there is any delay in receiving government orders or in implementing them, then its direct and negative impact can be seen on the company’s balance sheet and share prices.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
