India, Oct. 21 -- HBL Engineering has been one of the major beneficiaries of India's railway safety modernisation programme, with its Kavach automatic train protection systems being a huge success for the company. But the huge jump in profits has raised a valuation question. While the company expects robust sales of Kavach through FY28, management has warned that intensifying competition could hurt revenue and profits from FY29 onwards.

With a market capitalization of Rs. 21,794.45 crore, the shares of HBL Engineering Ltd were trading at Rs. 786.25 per share, down 3.17 percent from its previous closing price of Rs. 811.95 apiece. The stock trades at a P/E of 40.6x on a consolidated basis.

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