On Friday, the stock price of PSU traded flat at 0.6 percent higher at 12.20 p.m., Rs 193.75 per share, from its previous close of Rs 192.60 per share, after the sale of a 2 percent stake in the company by the leading insurance company.
According to the filing of Bharat Heavy Electricals Ltd, the Life Insurance Corporation of India sold 7.2 lakh equity shares which is 2 percent of the company in the open market.
Following the sales the Life Insurance Corporation of India’s shareholding in Bharat Heavy Electricals Ltd will be decreased from 11.7 percent to 9.6 percent.
Looking at the financials of BHEL, their net revenue decreased by 1.4 percent year on year, from Rs 5,203 crore in Q2FY23 to Rs 5,125 crore in Q2FY24. Their revenue rose by 2.4 percent sequentially from Rs 5,003 crore in Q1FY24 to the current levels.
In addition, the net profit decreased by 2,083 percent year over year, from Rs 12 crore in Q2FY23 to a net loss of Rs 238 crore in Q2FY24. Their net loss decreased by 30 percent on a quarter-on-quarter basis from a net loss of Rs 344 crore in Q1FY24 to current levels.
Bharat Heavy Electricals Ltd has a low debt-to-equity ratio of 0.20, a dividend yield of 0.57 percent and a good current ratio of 1.2. However, the return on equity, return on capital employed and net profit margin remain low.
The share price of the large-cap company has risen 121 percent in the last six months and 141 percent in the year to date. For example, if an investor made a Rs 1 lakh investment a year ago, the current value would be Rs 2.41 lakh.
The company’s Promoters own 63.17 percent of the company; the General Public owns 13.6 percent, Foreign Institutional Investors own 7.23 percent, and Domestic Institutional Investors own 16 percent.
Bharat Heavy Electricals Ltd is a manufacturer of integrated power plant equipment that specializes in the design, engineering, manufacturing, erection, testing, commissioning, and servicing of a wide range of products and services for the economy’s core sectors, namely power generation and distribution.
Written by Sriram KV
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