Leading the future of national defense and electric vehicle innovation

In today’s world, we are constantly surrounded by a symphony of technologies. From the quiet hum of a laptop to the dazzling display of a smartphone, these wonders depend on a hidden partnership between batteries and electronic solutions. Batteries and electronics are the unsung heroes of the modern world.

Their seamless partnership is so ingrained in our daily lives that we often take it for granted. But as technology continues to advance, their role will become increasingly important in shaping the future. HBL Power Systems plays a prominent role in battery and electronic component manufacturing in India and plays a pivotal role in building a better future.

With its commitment to providing quality products, HBL has emerged as a trusted name and the rise in HBL Power Systems stock price to a 52-week high of Rs 612 as compared to a 52-week low of Rs 97.30 has boosted investors’ confidence. It made a huge profit of 628% in just one year. Will it continue to rise? Let’s take a closer look at the performance of the HBL power system.

HBL Power System Business Overview

HBL power system It is headquartered in Hyderabad, India. HBL NIFE Power Systems Limited (formerly Sab Nife Power Systems) is a well-known manufacturer of batteries and power systems. HBL Power Systems was formed in 1999 through the merger of SAB Nife Power Systems Ltd, established in 1986, and Hyderabad Batteries Limited (HBL), established in 1977. The company is identifying and filling technology gaps in India through indigenous efforts. They have manufacturing facilities in Telangana and Andhra Pradesh regions.

HBL has presence in the United States, Europe, and the Middle East. Most of its revenue comes from battery sales in India. We serve a wide range of industries including defence, rail, telecommunications, power and even the emerging electric vehicle market. HBL became a public limited company and was listed on the stock exchange on January 4, 2007.

HBL primarily operates in three major segments: Industrial batteries, defense and aviation, electronics. Among these segments, HBL was created. 69% Defense and aviation sectors account for industrial battery revenues 17% Electronics take over. 11%

Product Overview HBL power system

telecom tower battery

Most telecommunication batteries today are Valve Regulated Lead Acid (VRLA). These batteries are known for their reliability, long service life and deep discharge capability, making them ideal for backup power in remote location communications towers. HBL currently ranks third by market capitalization and the sector is dominated by Amara raja batteries and Exide industries.

Railway and metro coach/loco batteries

HBL manufactures batteries for rail and metro buses. The batteries are made in the form of lead-acid or nickel cadmium alkaline batteries. Globally, HBL is the second largest producer of industrial nickel cadmium batteries.

Batteries for oil and gas, utility industries

HBL Power Systems supplies batteries in the form of nickel cadmium pocket plates to the oil and gas industry. These batteries are used in this industry because of their reliability and safety. Reliance Industries is one of the customers of HBL batteries.

DC power backup system

The company produces pure lead tin batteries to provide high output for a shorter period of time. It is used in stationary engine starts, tanks and military trucks operating at -30 degrees Celsius. HBL is the only manufacturer in India that has developed such battery manufacturing technology in-house.

torpedo battery

HBL is one of two suppliers in India that supplies torpedo propulsion batteries to the Indian Navy. A torpedo battery is a special battery designed to power underwater weapons fired from torpedoes, submarines or surface ships. HBL has also signed two contracts with DRDO/NSTL for development of AI AgO torpedo batteries.

missile battery

HBL manufactures, designs and develops missile batteries. Missile batteries provide electrical energy for various onboard systems within a missile, including guidance systems, communications equipment, and detonation mechanisms. They also export missile batteries to Israel and the UAE.

aircraft battery

Almost all batteries used by the Indian Air Force are sourced from HBL. Clearance certificates for product launch of PILATUS, P8-I and V5 aircraft were also issued to the company. The FAA and EASA have certified HBL batteries, stating that they can be used on Boeing 737 and Airbus 320 series aircraft.

KAVACH Train Collision Avoidance System (TCAS)

HBL has signed a contract with the railway company to supply TCAS. TCAS acts as an additional layer of safety by continuously monitoring the train’s location and surrounding environment. We utilize a variety of sensors and communication technologies to detect potential hazards.

TMS (Train Management System)

The train management system is a master control center with a large display panel that displays the status of all trains in the area. HBL is the only Indian company to be approved and certified for SIL – 2 by Bureau Veritas Spain.

Grenade with electronic fuze

This is a type of grenade that utilizes electronic circuits to detonate explosives. HBL is the only Indian company supplying grenades with electronic fuzes approved by the Home Ministry for use by paramilitary forces.

submarine battery

HBL and Exide Industries supply batteries for submarines. HBL exports these batteries overseas as there are only 10 companies producing these batteries worldwide.

Electronic fuzes for guns, rockets and bombs

HBL has developed 100% in-house technology for the development of fuzes and other ammunition, including artillery guns.

HBL in defense electronics

HBL manufactures digital control harnesses, integrated platform management systems and steering consoles for submarines. Since the market is not large, HBL took the opportunity by being the only supplier.

Finance of HBL Power System

In FY23, HBL Power Systems recorded significant revenue of $1,349.75 million, up 10.5% compared to $1,221.5 million in FY22. An analysis of three years from fiscal year 2021 to fiscal year 2023 shows that the company has shown good compound annual growth. The CAGR is 7.81%.

HBL Power Systems’ net profit margin in FY23 increased 6.71% to $955.44 billion compared to $89.44 billion in FY22.

This increase in revenue and net profit was driven by increased demand for the telecommunications sector and growing focus on modernizing the country’s defense. The company also hit an all-time high. Nickel Cadmium FY23 pocket plate (NCPP) sales

In FY23, HBL maintained favorable financial metrics with return on equity (ROE) of 10.45% and return on invested capital (ROCE) of 13.43%.

HBL Power System’s future plans

Capitalizing on a Growing Sector – Defense Modernization

India’s growing defense budget translates into potential opportunities for HBL’s electronic solutions such as fuses and railway signaling systems.

The Indian government is promoting self-reliance in defense equipment. Policies such as “Make in India” encourage domestic companies to produce defense products within their companies. HBL, an Indian company, can benefit from these initiatives by securing contracts.

EV (electric vehicle) boom

As demand for EVs grows, advanced battery technology is needed. To meet this market, HBL is investing in new facilities to manufacture lithium-ion batteries and electric drivetrains (EDTs).

HBL is actively developing and integrating lithium-ion batteries into its product portfolio, while also planning to expand its manufacturing units.

The company’s board of directors announced a total capital expenditure of Rs 17.5 billion for FY25. Out of Rs 17.5 billion, they have allocated Rs 6 billion for lithium-ion production plants.

conclusion

HBL Power Systems has a strong foundation for future success. By focusing on innovation, optimizing operations and diversifying our customer base, we can solidify our leadership position and contribute significantly to India’s technological advancement.

However, navigating competition and reducing operating cycles will be critical to their journey. What do you think about HBL’s performance going forward? Please share your thoughts in the comments below.

Written by Pavunkumar VM

By leveraging the Stock Screener, Stock Heatmap, Portfolio Backtesting and Stock Comparison tools on the Trade Brains portal, investors have access to comprehensive tools to identify the best stocks, stay updated and informed with stock market news. invest.