🔍Technical Analysis
HBL Engineering has showcased remarkable technical progression over the past 2+ years. The stock crossed ₹100 levels in June 2022 and embarked on an extraordinary journey, surging directly to ₹724 by August 2024 - representing a phenomenal 7.2x growth in just over 2 years.
The ₹724 all-time high level acted as formidable resistance multiple times, causing the stock to correct sharply to ₹400 levels. However, the game-changing moment arrived with the announcement of massive strong Q1 FY26 results, which triggered a powerful breakout.
The stock shot up decisively, breaking above the stubborn ₹724 resistance level and is now trading at ₹765. With bullish candlestick patterns emerging and the previous resistance potentially acting as new support, the technical setup appears highly favorable.
Entry Strategy: Enter on any dips toward ₹724-₹740 range, ensuring the old resistance holds as new support.
Targets:
🎯Target 1: ₹800
🎯Target 2: ₹850
🎯Target 3: ₹900
Stop Losses:
🚫Critical Stop: ₹724 (previous resistance, now key support)
If ₹724 resistance doesn't sustain as support, no more expectations on this stock.
💰Q1 FY26 Financial Highlights (vs Q4 FY25 & Q1 FY25)
HBL Engineering delivered record-breaking Q1 FY26 performance with PAT surging an exceptional 218% QoQ and 79% YoY to ₹143 crore, driven by strong Electronics division growth. The company posted record Q1 profits triggering a 14% stock price surge.
Market cap stands at ₹21,223 crore (up 19.8% in 1 year) with stable promoter holding of 59.1%. Annual revenue of ₹2,049 crore with profit of ₹340 crore demonstrates consistent business growth. Stock trades at 14.3 times book value indicating reasonable valuation.
The Electronics division has emerged as a key growth driver, contributing significantly to the exceptional quarterly performance. Company's mission-critical electronics systems and solutions business is well-positioned for sustained growth.
Operating profit margins expanded dramatically from 21% in Q1 FY25 to 32% in Q1 FY26, showcasing superior operational efficiency. The company gained 67% from March lows, indicating strong recovery momentum.
Cost management excellence reflected in flat expense growth while revenue surged 26% QoQ, demonstrating operational leverage benefits. Strong balance sheet fundamentals support the technical breakout thesis.
✅Conclusion
HBL Engineering's spectacular 218% QoQ PAT surge and successful breakout above ₹724 resistance creates a compelling technical and fundamental convergence. The record Q1 profits triggering 14% stock surge validates the breakout momentum. With Electronics division growth driving performance and strong operational leverage, the stock appears well-positioned for the ₹900 target zone. Critical support at ₹724 must hold for sustained bullish trajectory.
HBL Engineering has showcased remarkable technical progression over the past 2+ years. The stock crossed ₹100 levels in June 2022 and embarked on an extraordinary journey, surging directly to ₹724 by August 2024 - representing a phenomenal 7.2x growth in just over 2 years.
The ₹724 all-time high level acted as formidable resistance multiple times, causing the stock to correct sharply to ₹400 levels. However, the game-changing moment arrived with the announcement of massive strong Q1 FY26 results, which triggered a powerful breakout.
The stock shot up decisively, breaking above the stubborn ₹724 resistance level and is now trading at ₹765. With bullish candlestick patterns emerging and the previous resistance potentially acting as new support, the technical setup appears highly favorable.
Entry Strategy: Enter on any dips toward ₹724-₹740 range, ensuring the old resistance holds as new support.
Targets:
🎯Target 1: ₹800
🎯Target 2: ₹850
🎯Target 3: ₹900
Stop Losses:
🚫Critical Stop: ₹724 (previous resistance, now key support)
If ₹724 resistance doesn't sustain as support, no more expectations on this stock.
💰Q1 FY26 Financial Highlights (vs Q4 FY25 & Q1 FY25)
- Total Income: ₹602 Cr (↑ +26% QoQ from ₹476 Cr; ↑ +16% YoY from ₹520 Cr)
- Total Expenses: ₹410 Cr (↑ +4% QoQ from ₹396 Cr; ↑ +0% YoY from ₹410 Cr)
- Operating Profit: ₹192 Cr (↑ +143% QoQ from ₹79 Cr; ↑ +75% YoY from ₹110 Cr)
- Profit Before Tax: ₹191 Cr (↑ +169% QoQ from ₹71 Cr; ↑ +85% YoY from ₹103 Cr)
- Profit After Tax: ₹143 Cr (↑ +218% QoQ from ₹45 Cr; ↑ +79% YoY from ₹80 Cr)
- Diluted EPS: ₹5.17 (↑ +219% QoQ from ₹1.62; ↑ +79% YoY from ₹2.89)
HBL Engineering delivered record-breaking Q1 FY26 performance with PAT surging an exceptional 218% QoQ and 79% YoY to ₹143 crore, driven by strong Electronics division growth. The company posted record Q1 profits triggering a 14% stock price surge.
Market cap stands at ₹21,223 crore (up 19.8% in 1 year) with stable promoter holding of 59.1%. Annual revenue of ₹2,049 crore with profit of ₹340 crore demonstrates consistent business growth. Stock trades at 14.3 times book value indicating reasonable valuation.
The Electronics division has emerged as a key growth driver, contributing significantly to the exceptional quarterly performance. Company's mission-critical electronics systems and solutions business is well-positioned for sustained growth.
Operating profit margins expanded dramatically from 21% in Q1 FY25 to 32% in Q1 FY26, showcasing superior operational efficiency. The company gained 67% from March lows, indicating strong recovery momentum.
Cost management excellence reflected in flat expense growth while revenue surged 26% QoQ, demonstrating operational leverage benefits. Strong balance sheet fundamentals support the technical breakout thesis.
✅Conclusion
HBL Engineering's spectacular 218% QoQ PAT surge and successful breakout above ₹724 resistance creates a compelling technical and fundamental convergence. The record Q1 profits triggering 14% stock surge validates the breakout momentum. With Electronics division growth driving performance and strong operational leverage, the stock appears well-positioned for the ₹900 target zone. Critical support at ₹724 must hold for sustained bullish trajectory.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.