Shares of this defence company jumped 2 percent in Thursday’s trading session after receiving an order from Adani Power worth Rs. 4,000 crores. The shares have delivered a multibagger return of 252 percent returns to its shareholders in one year.
With a market capitalization of Rs. 86,059 crores, the shares of Bharat Heavy Electricals Ltd (BHEL) started Thursday’s trading session on a higher note at Rs. 253.05, gaining around 2 percent compared to its previous close of Rs. 243.10 and are currently trading at Rs. 247 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had received a Letter of Award from Adani Power for the supply of equipment (Boiler, Turbine, Generator) and supervision of the Erection and Commissioning for a 2×800 MW power project based on supercritical technology at Raigarh Phase II, Chhattisgarh.
Moreover, the Boiler and Turbine Generator are to be manufactured at BHEL’s Trichy and Haridwar plants respectively. The supply of Unit-1 is to be executed in 31 months and Unit-2 in 35 months.
Earlier, BHEL signed two Memorandum of Understanding (MoUs) with NBCC (India). The MoUs were for the redevelopment of identified properties/facilities and the leasing of offices and residential units on a PAN India basis.
Coming onto the company’s financial statements, the revenue increased by 7 percent from Rs. 5,125 crores in the September quarter to Rs. 5,504 crores during the Decmber quarter. In addition, the company narrowed down the net losses from Rs. 238 crores to Rs. 149 crores during the same timeframe.
As of 30 Sept 2023, the company has an order book of Rs. 33,479 crores. Wherein, 72 percent of the orders were received from the power sectors and the remaining 28 percent of orders were received from exports and other industries.
Looking at the important financial ratios, the return on equity (RoE) decreased marginally from 1.56 percent during FY21-22 to 1.54 percent in FY22-23 and the return on capital employed (RoCE) increased from 2.19 percent to 2.44 percent during the same timeframe. On the other hand, the net profit margin decreased from 2.10 percent during FY21-22 to 2.04 percent in FY22-23.
Headquartered in New Delhi, Bharat Heavy Electricals was incorporated in 1964. The company is an integrated power plant equipment manufacturer engaged in the design, engineering, manufacture, erection, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. Power, transmission, Industry, transportation, renewable energy, Oil and Gas and Defence.
Written By Vaibhav Patil
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