Rs 1,60,000 Crore Order Book: Power Company in JV with Hitachi Energy Received a Contract for Khavda to Nagpur HVDC project from Power Grid Corporation
The stock is up by over 70 per cent from its 52-week low of Rs 142.30 per share.
Bharat Heavy Electricals Limited (BHEL) has secured a significant contract from Power Grid Corporation of India Limited (POWERGRID) for the Khavda Nagpur HVDC project. This project involves the design and execution of a ±800 kV, 6,000 MW bi-pole and bi-directional High Voltage Direct Current (HVDC) link. This 1,200 km long link will facilitate the transmission of renewable energy from the Khavda Renewable Energy Zone in Gujarat to the industrial hub of Nagpur in Maharashtra.
This project marks a significant milestone in India's ambitious goal of achieving 500 GW of renewable energy evacuation and transmission. It is noteworthy that this is the first HVDC project in India to be awarded through a tariff-based competitive bidding process. BHEL, in collaboration with Hitachi Energy India Limited, will be responsible for the complete execution of the project. This includes the supply and installation of critical components such as converter transformers, AC/DC control and protection systems, gas-insulated high-voltage switchgear, thyristor valves, and 765 kV/400 kV substations.
The Khavda Nagpur HVDC project is strategically important as it will strengthen India's power grid and enable the seamless integration of large-scale renewable energy sources. By efficiently transmitting clean energy from the renewable-rich Khavda region to the energy-intensive Nagpur region, this project will contribute to India's efforts to reduce carbon emissions and achieve its renewable energy targets. The project is expected to be completed by the year 2029, and once operational, it will play a pivotal role in India's energy transition.
About the Company
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.
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Bharat Heavy Electricals Limited (BHEL) announced mixed sets of numbers in its Quarterly Results (Q2FY25) and half-yearly results (H1FY25). According to quarterly results, the net sales increased by 28.5 per cent to Rs 6,584.10 crore in Q2FY25 compared to Q2FY24. The company reported a net profit of Rs 89.53 crore in Q2FY25 compared to a net loss of Rs 74.96 crore in Q2FY24, an increase of 219.4 per cent. In its half-yearly results, the company reported net sales of Rs 12,069 crore and a net loss of Rs 136 crore in H2FY25 while in its annual results, the company reported net sales of Rs 23,893 crore and a net profit of Rs 218.24 crore in FY24.
The company has a market cap of over Rs 80,000 crore. The President of India’s portfolio owns 63.17 per cent and Life Insurance Corporation of India’s portfolio owns 6.72 per cent as of September 2024. Additionally, FIIs increased their stake to 9.48 per cent in September 2024 compared to 9.10 per cent in June 2024. Furthermore, the company’s order book stands at Rs 1,80,000 crore.
The company has been maintaining a healthy dividend payout of 27.8 per cent. The stock is up by over 70 per cent from its 52-week low of Rs 142.30 per share. Investors should keep an eye on this PSU stock.
Disclaimer: The article is for informational purposes only and not investment advice.