President of India & LIC-backed multibagger heavy electrical equipment company enters into a joint venture agreement with Coal India Ltd; details inside!

From Rs 81.80 to Rs 298.95 per share, the stock gave multibagger returns of 265 per cent to its investors.

Bharat Heavy Electricals Ltd (BHEL) joined forces with Coal India Ltd (CIL) to enter a new frontier: the coal-to-chemicals industry. This collaboration resulted in the incorporation of a joint venture company named Bharat Coal Gasification and Chemicals Limited (BCGCL) on May 21, 2024. Structured as a private limited company, BCGCL has a capital structure where CIL holds the majority stake at 51 per cent (contributing Rs 51,000) while BHEL holds the remaining 49 per cent (contributing Rs. 49,000). The total authorized capital for this venture is Rs 11 crore. BCGL's core objective is to leverage coal gasification technology. This process will convert coal into syngas, which will then be utilized to produce ammonia and nitric acid as intermediate products. Finally, the end product will be ammonium nitrate. To ensure a smooth launch, the formation of this joint venture received the necessary clearances from both NITI Aayog and DIPAM.

Earlier, BHEL entered into a technology transfer agreement (TTA) with Bhabha Atomic Research Centre (BARC) for a 50 kW alkaline electrolyser system for Hydrogen production. The well-proven technology offered by BARC is indigenously developed and has high local material content. The agreement was signed in the presence of Mr Jai Prakash Srivastava, Director (Engineering, Research & Development), BHEL by Mr K. Ravishankar, Executive Director (Corporate Technology Management and Corp R&D), BHEL and Dr S. Adhikari, Associate Director (Knowledge Management Group), BARC. BHEL through this collaboration with BARC intends to scale up Indigenous Alkaline Electrolyser Technology and commercialise it for application in sectors such as refineries, fertiliser, steel, transportation, etc. This will be a step further in BHEL’s contribution to the ‘National Green Hydrogen Mission’ and ‘Aatma Nirbhar Bharat Abhiyan’.

On Friday, shares of BHEL gained 2.80 per cent to Rs 298.95 per share from its previous closing of Rs 290.80 with an intraday high of Rs 300.50 and an intraday low of Rs 288.60. The stock’s 52-week high is Rs 322.35 and its 52-week low is Rs 81.80.

Also Read: Vijay Kedia gains Rs 12,06,05,760 from this multibagger engineering stock in just 1 day as the company reports a 197 per cent jump in net profit

BHEL, a leading public sector enterprise under the Ministry of Heavy Industries and Public Enterprises, has been at the forefront of India's power sector for over six decades. With a strong track record in the design, engineering, and manufacturing of a wide range of power generation equipment, BHEL has played a pivotal role in powering the nation's economic growth.

BHEL Limited manufactures various power plant equipment. The company has a market cap of over Rs 1,00,000. The President of India’s portfolio owns 63.17 per cent and Life Insurance Corporation of India’s portfolio owns 8.18 per cent as of March 2024. Additionally, FIIs increased their stake to 8.76 per cent in March 2024 compared to 7.04 per cent in December 2024.

The company has reported a positive set of numbers in its Quarterly Results (Q4FY24) and annual results (FY24). The company has been maintaining a healthy dividend payout of 30.4 per cent. From Rs 81.80 to Rs 298.95 per share, the stock gave multibagger returns of 265 per cent to its investors.

Do you own shares of Bharat Heavy Electricals Limited’s into your portfolio? Do let us know in the comment below

Disclaimer: The article is for informational purposes only and not investment advice.