2400% return in 4 years; how this battery stock has powered investor portfolios

Shares of HBL Power Systems have made investors richer with 2400 per cent returns in a span of just 4 years. But the gains have come off after a period of 15 years, before which the stock remained rather muted, i.e., from 2004 to 2019.
 
But after this period, the stock between December 2019 and December 2023 has delivered a 24-time return to its investors. The stock, which was quoting at Rs 16 in December 2019, is now trading around Rs 390.
 
As of Thursday's session (December 7), the stock traded with a gain of over 1 per cent at Rs 394.8. On December 4, the stock logged its all-time high of Rs 409.45 per share, while its all-time low was Rs 5.75 on July 31, 2013.
 
With a m-cap of Rs 10,864 crore, HBL Power Systems is a small-cap stock. The company, with a focus on engineered products and services, is engaged in the design, development, and manufacturing of specialised batteries and direct current systems in India and other engineering products.

Talking about its financials, net income at the company over the last 5 years has grown at a yearly rate of 25.55 per cent, versus the industry average of 4.78 per cent. In the September quarter, net profit at the battery firm more than trebled on a year-on-year basis.

Going ahead, technicals also hint at a bullish outlook for the counter. Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox, stated that the breakout above the 350 mark has sparked fresh upside in the counter, implying a bullish outlook for the month ahead. Now, if the counter succeeds in crossing the 410 level, the price action could realise a flashy move towards the 440 mark. The trend remains favourable towards a long bias, the analyst added.