Initially they are battery manufacturers.
Barclay’s took the majority stake and then transformation started.
Now it is almost a debt free company and entering in to new related spaces which diversifies their business.
Mainly three things can change the fortunes of the company (Small cap of 1400cr M.Cap)
Lithium Ion battery manufacturing plant
Electrical drive (power train) solutions
TCAS system (Only three approved companies) of huge opportunity (Approximately 22000cr -
40000cr opportunity for three companies in the upcoming years). In this if HBL is able to grab atleast 30% would result in to great opportunity.
Note:
1.This all will add the value to the existing business.
2. This is not for short term or medium term!! It’s only for long term investors.
Thank you for the summary, this looks good! I’ve also invested recently, holding long term, but the recent dip had me worried.
They look like an interesting company, I went through their website and liked the way they presented things, but not much hype about them yet.
@Stocks_To_Win@Summeer_Bajpai
Do you have any source regarding Barclays taking a stake in this company?
From the promoter share holding you can see that majority stake is a Barclay’s trust account for the Aluru family.
Came across this company while searching Screener for some good companies. Since it looked interesting I started reading about this company by going through their website and FY 21 Annual Report.
I think Barclays did not take a stake in the company. Barclays are acting as a trustee to manage the private trusts (Aluru family private trust and Mikkilineni private trust) created by the promotor’s family.
Read FY21 Annual report and the found that their debt became 0. And they have got contracts from Railways and expected to get more contracts from railways. Also their Electronics R and D division looks promising.
Started tracking and planning to invest in staggered manner.
Yes Barclay’s shown in promoter group but it has to be seen as trustee only.
After their take over company doing great but yet bottom line numbers not improved.
So far they are able to make the company aa debt free. Electronics division and Li battery divisions are seema to be the game changer for the company.
Dear shah- So far only three companies got approvals from authorities for TCAS(Kavach).
Medha (Not listed)
HBL Power
Kernex micro
Out of these three kernex is the other listed player but its valuations not looks promising.
HBL has some other business verticals which are adding more strength to its business like Electric drive train, Lithium Ion battery manufacturing plant etc.,
Do tenders for TCAS (Kavach) happen? And if yes then for how many kms? and how much did HBL get?
What will be the maintenance revenue that the company will be getting for the same because in the ETCS system Alstom use to get maintenance contracts for 20-30 years? so is there any opportunity there for HBL?
In the 2021 Annual report of HBL the management mentioned that 7500 crores have been allocated for 25000 km of TCAS, so the average cost comes out to be 30 lakhs and every report says the cost of TCAS per km is 50 lakh, so if you can provide any clarity on that part?
And what will be the useful life of TCAS? as ETCS useful life is around 20-30 years
About Lithium-ion batteries, what can be the potential of the company for the same and where company can position itself in that segment? What is the market of lithium-ion and what market share do HBL have the capability to capture, as I read from one of the credit rating reports that they are doing 110 crores Capex for Electric Drive (which includes Lithium-ion battery pack) which will be 80 cr debt-funded so knowing companies potential is very imp here
Also any latest update on the company, defense segment, or battery segment
Management of the company have private companies, so wanted to know what is the size of the company and what will be the turnover of the same
It would be great if anyone of you guys can answer these questions
TCAS already implemented in some sections of South Central Railway and others but they are still in trails only. Once they are finalised high speed lines are provided with TCAS system.
In past some tenders are given for five year maintenance.
The cost of the TCAS has to be finalised as it is still under trails. As per the latest announcement it would be around 50lak/km.
The AMC is 5 years but it’s codal life is about 20 years.
Lithium ion battery manufacturing plant commissioning is very important for HBL growth. Penetration of EV is very high in upcoming years and the major contribution of cost of EV is battery. You can go through any EV report for future guidance.
In defence and telecom sector also company is doing well.
Regarding turnover and parameters you can check in any website.
My points added further…
Most important parameter to select a stock is about the ability and fairness of the management along with bright outlook of the sector.
Electrical train drive, battery management system etc., are also the considerable areas which can improve it’s numbers.
HBL has reduced it’s debt considerably in last several years (that shows the quality of the management).
With thanks
Be and Make
Disc: Had holdings
It’s a good company that is slowly getting the hang of it’s research and development. Still a long way to go though.
Unless one converts the research and development to profits, it’s an expense. They have to be more aggressive on their profit margins being in niche segment and I have noticed these changes in last few quarters. So my hopes are intact with the company.
Needless to say, the stock is traders delight as well.
Thanks for posting Annual Report. This stock has reported huge volume on Friday, with number crossing 3 cr mark. This is a big positive, as market is weak amidst turmoil in World market. Recently it has won more orders from Railway, with more orders being processed. Also expecting orders from Defence segment. In recent times Indian market has shown resilience but with all round selling, it may succumb to pressure and go down. So this is the time for stocks playing to domestic demand. HBL is such a stock in a recession proof sector like defence, railway, infrastructure, EV, Auto, technology etc. So time to accumulate on every opportunity.
NB- Please note that my view may be biased as I am invested.This is not a buying recommendation. Please make your own due diligence.
Sanjeev Kumar Experience 16 Years at HBL
Sr. Manager SPV Sales & Projects at HBL Power Systesm Ltd.
Participation & effective execution of tender business mainly with state Nodal agencies.
Sales of SPGS to organisations & individual customers.
System design, Project planning, execution & ensuring timely payment collection.
Developing new application/ solutions severally & in partnership with like-minded organisations/ professionals. Organising field trials & getting approvals from competent authorities.
Updating HQ on latest developments related to policy matters especially released by MNRE & SECI.
Preparation of DPRs, arranging project approvals, channel partner status etc. with MNRE.
Marketing of OPEX based energy efficient solution in telecom.
Developing leads for new products- promotion of Li-ion & Tub Gel battery technologies.
Developing business partnership & consortium with like-minded organisations/ professionals.
Managing customer service on 24X7 basis for telcos & TSPs, to name a few like Bharti-Airtel, TTSL, Idea Cellular, Aircel, Ericsson, Nokia-Siemens, Zamil New Delhi, Tower Vision, IMIL, Motorola, Nutek, Alkatel-Lucent, GTL.
Handling AMCs for MSC batteries.
Installation & commissioning and ATE of batteries at BTS, BSC & MSC sites.
Field performance audits of old & newly installed batteries.
Conducting training for Customer O&M teams.
Carried out field trial for Tub Gel (new product developed by HBL) with telcos.
Executed work orders for revival of field return batteries.
Ensured quality delivery of battery consignments at customer point through creation of infrastructure of Field Quality Assurance (FQA).
Undertaken in-house training (multi-skilling) for supervisors & service engineers and conducting team motivational programs/ events.
Insulated seniors from day to day account operations and ensure issues are resolved on time.
A RATNA KISHORE Experience 22.5 Years
General Manager at HBL Power Systems Ltd.
Incharge For Execution Of Railway Signalling Projects All Over India Including Metro Rail Project
Responsible For Customer Service For Industrial Products For India And Overseas Market
Pabitra MishraExperience 15.7 Years
Metallurgist at HBL Power Systems Pvt ltd.
Successful commissioning of Battery Recycling Unit, Rotary Furnace Smelting Unit and Refining and Alloying unit.
Achieved Production target of 1,000 Metric Tons per month of refined lead and manufacture of different grades of Lead alloys suitable for 2Volt,12 Volt batteries, automotive, SLI (Spark Light Ignition).
Implementation of Quality Management System (ISO 9001), Environment Management System (ISO14001) and OHSAS (ISO 18001).
Research and Development for the process improvement for reduction in cycle time in refining processes.
