Maharatna PSU engaged in the design, engineering, construction, testing, commissioning, and servicing of a wide range of products and services jumped upto 3 percent in the day’s trade upon receiving work orders worth Rs. 11,000 Crores from the Adani Group.
Price Action
With a market capitalization of Rs. 1,03,783 Crores, the shares of Bharat Heavy Electricals Limited were trading at Rs. 298 per equity share, up 0.62 percent from its previous day’s close price of Rs. 296.15. It has delivered a return of 172 percent in a year.
What Happened
Bharat Heavy Electricals Limited a Maharatna CPSE which is one of the largest engineering and manufacturing companies in India have signed a contract agreement with Adani Power Limited and its subsidiary Mahan Energen Limited upon receiving three work orders from the parties for a consideration of Rs. 11,000 Crores.
The said work order is for the Supply of equipment i.e., Boiler, Turbine, Generator, and associated auxiliaries along with control and instrumentation, Supervision of Erection & Commissioning for Three power projects each of 2×800 MW based on Supercritical Technology at Kawai (Phase-II) Rajasthan & Kawai (Phase-III) Rajasthan of Adani Power and Mahan (Phase-III), Madhya Pradesh of Mahan Energen Limited.
The supply and completion of projects is to be completed in 49 months for Kawai Phase-II, 52 months for Kawai Phase-III, and 55 months for Mahan Phase-III.
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About the Company
Bharat Heavy Electricals Limited (BHEL) is Maharatna CPSE and one of the largest engineering and manufacturing companies in India engaged in the design, engineering, construction, testing, commissioning, and servicing of a wide range of products and services for the core sectors of the economy like power, transmission, renewable energy, industry, and many more.
Financials and Ratios
Its revenue from operations grew by 10 percent from Rs. 5,003 Crores in Q1FY24 to Rs. 5,485 Crores in Q1FY25, accompanied by losses of Rs. 205 Crores to Rs.211 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 1.13 percent and a Return on capital employed (ROCE) of 3.37 percent. It has reported a debt-to-equity ratio of 0.36.
Written by: Bharath K.S
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