The shares of the leading power equipment manufacturer gained around 5.7 percent to hit a 52-week high price of Rs 204.65 per share on Monday after the company received an order of Rs 19,422 crore to build a thermal power plant.
At 11:50 a.m., Bharat Heavy Electricals Ltd(BHEL) shares were quoted at Rs 200.40 per share, up 3.59 percent from the previous close price. The company has a market capitalization of Rs 70,093 crore.
According to reports, BHEL has emerged as the lowest bidder for a Rs 19,422-crore turnkey contract for building a thermal power plant for NLC India at Talabira, Odisha, quoting a better price than L&T-MHI.
BHEL would build three ultra-supercritical units of 800 MW each for NLC India at Talabira. This is a big order for BHEL, which will load its plants at Haridwar (turbine-generator), Tiruchi (boilers), and Hyderabad (various other components such as pulverizer mills).
The power plant would be fed with coal from NLC’s Talabira mines. NLC will produce 14.5 million tonnes of coal from Talabira this year but has plans to raise production to 20 million tonnes in a few years, as per the report.
Bharat Heavy Electricals shares have delivered a multibagger return of 128 percent in the last six months and 158 in a year. A shareholder investment of Rs 1 lakh in the company would be worth Rs 2.58 lakhs in a year.
BHEL has a total order book of Rs 33,479 crore as of September 2023 in which the business has a 4 percent export order worth Rs 3,942 crore. Similarly, the company’s power sector division has an outstanding order of Rs 82,673 crore, accounting for 72% of the total order.
BHEL revenue has declined by 1.4 percent year on year, from Rs 5,202 crore in Q2FY23 to Rs 5,125 crore in Q2FY24. During the same period, Net profit has drastically declined from Rs 12 crore to a loss of Rs 238 crore.
Bharat Heavy Electricals Limited (BHEL) is the largest engineering and manufacturing public sector company. Which is engaged in the business of
production of integrated power plant equipment and weapons. The company serves domestic as well as international clients.
Written By Omkar Chitnis
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