Rs 1,25,000 crore order book & FIIs increase stake: LIC-backed multibagger heavy electrical equipment stock signs MoU with HIMA Group
From Rs 77.30 to Rs 318.15 per share, the stock gave multibagger returns of over 300 per cent to its investors.
Bharat Heavy Electricals Limited (BHEL), a major supplier of locomotives and electrical components for Indian Railways, has partnered with HIMA Middle East FZE, a subsidiary of the world's leading railway and process industry safety automation provider HIMA Paul Hildebrandt GmbH. This strategic alliance aims to strengthen BHEL's offerings in the railway signalling business by leveraging HIMA's expertise. By combining BHEL's existing portfolio of locomotives, electrics, and propulsion systems with HIMA's advanced safety-related automation solutions, the partnership intends to provide Indian Railways with a more comprehensive and technologically advanced railway signalling system.
Earlier, the company secured a significant domestic order worth approximately Rs 4,000 crore (excluding GST) from Adani Power Limited on March 27, 2024. This contract involves BHEL supplying equipment (boilers, turbines, generators) and supervising the erection and commissioning of a 2x800 MW supercritical thermal power plant at Raigarh Phase-II in Chhattisgarh. The boilers and turbine generators will be manufactured at BHEL's domestic facilities in Trichy and Haridwar, with a delivery timeline of 31 months for Unit 1 and 35 months for Unit 2.
On Friday, shares of BHEL gained 8.71 per cent to an intraday high of Rs 318.15 per share from its previous closing of Rs 292.65 per share. The stock also made a fresh new 52-week high of Rs 318.15 while its 52-week low is Rs 77.30 with a spurt in volume by more than 2.89 times on BSE.
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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 and its order book stands at over Rs 1,25,000 crore. 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 2023.
The company has reported a mixed set of numbers in its Quarterly Results (Q3FY24) and nine-month results (9MFY24). The company has been maintaining a healthy dividend payout of 20.1 per cent. From Rs 77.30 to Rs 318.15 per share, the stock gave multibagger returns of over 300 per cent to its investors.
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Disclaimer: The article is for informational purposes only and not investment advice.
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