The shares of India’s largest engineering and manufacturing enterprise in the energy and infrastructure sector gained around 5.5 percent to hit a 52-week high price of Rs 164.60 per share on Wednesday after the company received an order of Rs 2,956 crore from the Ministry of Defence.
At 11:36 a.m., Bharat Heavy Electricals Ltd shares were quoted at Rs 163.60 per share, up 4.77 percent from the previous close price. The company has a market capitalization of Rs 56,966 crore.
As per the report, The Ministry of Defence has signed a contract with M/s Bharat Heavy Electricals Limited (BHEL), Haridwar on 28th November 2023, for the procurement of 16 Upgraded Super Rapid Gun Mount (SRGM) along with associated equipment/ accessories for Indian Navy under Buy (Indian) category at a total cost of Rs 2,956.89 crore.
The upgraded SRGM is a medium-caliber anti-missile/anti-aircraft point defense weapon system that provides a sustained rate of fire and high accuracy. The upgraded SRGMs will be installed on newly built ships by Mazagaon Dock and Shipbuilders Ltd and Garden Reach Shipbuilders & Engineers.
The project will generate employment of two and a half lakh man-days over a period of five years and it will encourage Indian industries including MSME to participate.
According to the company’s filing, Bharat Heavy Electricals Limited (BHEL) has signed a Memorandum of Cooperation (MoC) with Electricité de France S.A., France (EDF), a French state-owned company and largest nuclear operator worldwide.
Through the above-mentioned collaboration, it helps the company explore the opportunity to maximize the local content of the Jaitapur Nuclear Power Plant Project (6×1650 MWe) in India.
Further, BHEL and EDF will help to explore larger collaboration for the European Pressurized Reactors (EPRs) and the NUWARD SMR (Small Modular Reactor).
Bharat Heavy Electricals shares have delivered a return of 92 percent in the last six months and 96 in a year.
BHEL has a total outstanding order of Rs 1,14,425 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 1 crore to a loss of Rs 250 crore.
Bharat Heavy Electricals Limited (BHEL) is the largest engineering and manufacturing public sector firm in India. The company 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
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
