Rs 1,35,000 crore order book: President of India-backed heavy electrical equipment company bags new orders worth Rs 11,000 crore from Adani Group

The President of India’s portfolio owns 63.17 per cent and Life Insurance Corporation of India’s portfolio owns 7.33 per cent as of June 2024.

On Monday, shares of this multibagger heavy electrical equipment company gained 2.62 per cent to Rs 303.90 per share from its previous closing of Rs 296.15. The stock’s 52-week high is Rs 335.40 and its 52-week low is Rs 105.05. At the closing bell, shares of the company were trading at Rs 297.25 per share, up 0.37 per cent with a spurt in volume by more than 1.18 times on BSE.

The stock name is Bharat Heavy Electricals Ltd (BHEL).

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.

Bharat Heavy Electricals Limited (BHEL) has secured a significant contract from Adani Power Limited and its subsidiary, Mahan Energen Limited, to provide equipment and services for the construction of three supercritical thermal power projects. These projects, located in Kawai, Rajasthan, and Mahan, Madhya Pradesh, will each have a capacity of 1600 MW. The contract agreement, signed on August 25, 2024, covers the supply of boilers, turbines, generators, and associated equipment, as well as the supervision of erection and commissioning. The projects are expected to be completed in 49 months (Kawai Phase-II), 52 months (Kawai Phase-III) and 55 months (Mahan Phase-III). The total value of the three orders exceeds Rs 11,000 crore excluding GST.

The company has a market cap of over Rs 1 lakh crore. The President of India’s portfolio owns 63.17 per cent and Life Insurance Corporation of India’s portfolio owns 7.33 per cent as of June 2024. Additionally, FIIs increased their stake to 9.10 per cent in June 2024 compared to 8.76 per cent in March 2024. Furthermore, the company’s order book stands at Rs 1,35,000 crore.

The company has reported a mixed set of numbers in its Quarterly Results (Q1FY24) and annual results (FY24). The company has been maintaining a healthy dividend payout of 27.8 per cent. From Rs 105.05 (52-week low) to Rs 297.25 per share, the stock gave multibagger returns of over 180 per cent to its investors.

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

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