News

Published: August 23, 2023
Updated: August 23, 2023

BHEL Shares Skyrocket 12% to Reach New 52-Week High Following ₹4,000 Crore Order Win:

Bharat Heavy Electricals Ltd (BHEL) experienced a remarkable uptick of 12% in its share price, propelling it to achieve a new peak for the year. This substantial surge was triggered by a lucrative order worth ₹4,000 crore secured from Mahan Energen Ltd, a subsidiary of Adani Power. The contract encompasses the supply of essential equipment for a significant two-phase 800 MW supercritical power project located in Bandhaura, Madhya Pradesh.

Impressive Market Performance:

BHEL's stock exhibited impressive resilience and momentum in the market, closing at ₹110.80 apiece on the NSE, reflecting a 9.76% increase. This substantial gain was largely attributed to the substantial order win and positive market sentiment. The trading session saw the stock open at ₹101.50 apiece, with intraday highs and lows at ₹112.85 and ₹101.05 respectively, indicating strong market engagement and fluidity.

Key Details of the Order:

The comprehensive order acquired from Mahan Energen Ltd encompasses the supply of boiler, turbine, and generator equipment, accompanied by diligent supervision for the erection and commissioning of the power project in Bandhaura. Notably, the historical entity Mahan Energen Ltd was previously identified as Essar Power MP Ltd. The project's execution is divided into two stages, with Unit 2 expected to be completed within 35 months, and Unit 1 within 31 months.

Exemplary Growth Trajectory:

Over the past year, BHEL's shares have witnessed an astounding growth of 105.2%, significantly outperforming its sector by a substantial margin of 37.1%. This remarkable accomplishment is attributed to the escalating demand for Public Sector Undertakings (PSU) stocks, with BHEL emerging as a distinguished player due to its strategic orders and consistent financial performance.

Robust Financial Insights:

Despite inherent challenges, BHEL's consolidated revenue for Q1FY24 displayed a robust growth rate of 7.1%, surging to ₹5,003.4 crore. This commendable growth was observed across both the power and industry segments, with the power segment's revenue reaching ₹999.21 crore and the industry segment's revenue soaring to ₹4,818.37 crore.

Analyzing the Market:

Market analysts emphasize that BHEL's recent stock surge is emblematic of its capability to secure pivotal contracts and deliver commendable financial results. The substantial order from Mahan Energen Ltd, coupled with BHEL's steadfast growth trajectory and the optimistic market sentiment, contribute to an encouraging outlook for the company's future ventures.

The recent ascent in BHEL's share price underscores its agility in securing strategic contracts and attaining remarkable financial milestones. The company's achievement of a substantial order from Mahan Energen Ltd, coupled with its consistent growth and positive market sentiment, positions BHEL favourably for its upcoming undertakings.