Bharat Heavy Electricals Ltd (BHEL) stock opened its trading hour today at Rs 72.10 and currently trades at Rs 71.95. The scrip has gained nearly 0.5 percent as compared to the previous closing levels of Rs 71.65. In the last five trading sessions, the stock has provided about 5.3 percent returns to its stakeholders.
In a recent filing with the exchange, the company announced that the consortium of BHEL and Titagarh Wagons Limited received an order from the Ministry of Railways. The order is pertaining to the supply of 80 sleeper class ‘Vande Bharat’ Trains at a rate of Rs 120 crores per train and undertaking comprehensive maintenance of the same for a period of 35 years.
Bharat Heavy Electricals Ltd, one of the largest engineering and manufacturing companies in the country, is an integrated power plant equipment manufacturer offering products and services to various sectors such as power, transportation, energy, oil and gas, defense, and other industrial markets.
Its product portfolio consists of heavy industrial equipment and components which include turbines, valves, pumps, boilers, and insulators. The majority of total revenue is derived from domestic sources, but, the company has been successful in tapping many other different regions.
Having a quick walkthrough of the financials, the revenues as well as net profits of the company have increased in the recent quarters. Revenues went up from Rs 5,203 crores in Q2 to Rs 5,263 crores in Q3. Moreover, net profits moved from Rs 2 crores in Q2 to Rs 23 crores in Q3.
Both the important profitability parameters such as ROE and ROCE transitioned from negative to positive numbers. ROE shifted from negative returns of 9.88 percent in FY20-21 to positive returns of 1.69 percent in FY21-22. Likewise, ROCE took a shift from negative returns of 9.71 percent in FY20-21 to positive returns of 2.96 percent in FY21-22.
The debt to equity ratio of the company improved by showing a reduction in numbers from 0.19 in FY20-21 to 0.18 in FY21-22.
As per the data available for the quarter ending December 2022, promoters hold a constant 63.17 percent stake in the company. Whereas, FIIs, having a positive outlook, increased their stake from 4.81 percent in Q2 to 8.48 percent in Q3.
Written by Amit Madnani
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