After Rs 7,000 crore orders from Adani Group, this heavy electrical equipment company likely to bags another huge order worth Rs 13,300 crore from Damodar Valley Corporation

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.

In line with the Indian government's goal to ensure the country's energy security, Bharat Heavy Electricals Ltd (BHEL) is likely to secure a Rs 13,300 crore contract to construct a 1600 MW thermal power plant in Koderma, Jharkhand. Awarded by the Damodar Valley Corporation (DVC), this project will be executed by BHEL on an engineering, procurement and construction (EPC) basis. The Koderma Thermal Power Station (2X800MW) is expected to be operational by 2030, significantly increasing DVC's installed thermal generation capacity to 8140 MW. This investment is also anticipated to bring substantial economic benefits to the region and its residents. The company has just placed a bid for the project and the order has not yet been confirmed by DVC as per excahnge filing). 

Earlier, BHEL secured two significant domestic orders exceeding Rs 7,000 crore each (excluding GST). One order from Mirzapur Thermal Energy (UP) Private Limited, a subsidiary of Adani Power Limited, involves supplying equipment (boilers, turbines, generators etc.) and supervising the erection & commissioning for a 2x800 MW thermal power project with Supercritical Technology at Mirzapur Phase I, Uttar Pradesh. The boilers will be manufactured at BHEL's Trichy plant and the turbine generators at Haridwar, with a staggered delivery schedule of 35 months for Unit-1 and 41 months for Unit-2. The other order from Adani Power Limited is for a similar 2x800 MW thermal power plant in Raipur, Chhattisgarh. The project scope includes similar equipment supply and supervision of erection & commissioning with manufacturing divided between the Trichy and Haridwar facilities. This project also follows a staggered delivery schedule with Unit-1 arriving in 35 months and Unit-2 in 41 months.

Also Read: Rs 85,000 crore order book: This multibagger railway infra company bags new orders worth Rs 229,20,48,323.26 from Ministry of Railways

Today, shares of BHEL gained 3.62 per cent to Rs 307.95 per share from its previous closing of Rs 297.20. The stock’s 52-week high is Rs 322.35 and its 52-week low is Rs 85.05.

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. Furthermore, the company’s order book stands at Rs 78,000 crore.

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 85.05 (52-week low) to Rs 307.95 per share, the stock gave multibagger returns of 262 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.