Shares of HBL Engineering Ltd., earlier known as HBL Power Systems Ltd. gained as much as 6% on Monday, December 16 after it bagged an order from the Chittaranjan Locomotive Works.

In an exchange filing, HBL Engineering said it won an order for the supply, installation and commissioning of on-board Train Collision Avoidance System (TCAS) also known as KAVACH.

The order pertains to the installation of this system in 2,200 locomotives and has to be completed within 12 months from the date of issue of the purchase order.

Value of the order is ₹1,522.4 crore, excluding applicable taxes.

HBL Engineering is one among the few railway companies involved in the KAVACH orders for the Indian Railways, with other companies like KEC International, Kernex Microsystems, RailTel, and Siemens also in the fray.

In fact, Kernex Microsystems was awarded a KAVACH order last week worth over ₹2,000 crore, which was greater than its overall market capitalisation.

The total estimated order opportunity for KAVACH and LTE combined is worth ₹30,000 crore.

HBL Engineering shares have no analyst coverage currently.

Shares of HBL Engineering are up 3.7% on Monday at ₹720.55. The stock is trading at a record high. The stock is up 66% so far in 2024, having gained 313% in 2023. The stock has delivered positive annual returns every single year since 2020.