President of India & LIC-backed multibagger heavy electrical equipment company bags new orders worth Rs 7,000 crore from Adani Group

From Rs 83.10 to Rs 278.15 per share, the stock gave multibagger returns of 235 per cent to its investors.

Bharat Heavy Electricals Limited (BHEL) secured a domestic order worth over Rs 3500 crore (excluding GST) from Mirzapur Thermal Energy (UP) Private Limited, a subsidiary of Adani Power Limited. The contract signed on June 5th, 2024, involves supplying equipment like boilers, turbines, generators and their associated auxiliaries along with control and instrumentation for a 2x800 MW thermal power project based on Supercritical Technology at Mirzapur Phase I, Uttar Pradesh. BHEL will also supervise the erection and commissioning of the power plant. The boilers will be manufactured at BHEL's Trichy plant, while the turbine generators will be made at their Haridwar facility. The project has a staggered delivery schedule with Unit-1 being supplied in 35 months and Unit-2 in 41 months.

BHEL also landed a domestic order exceeding Rs 3,500 crore (excluding GST) from Adani Power Limited (APL) to establish a 2x800 MW thermal power plant (TPP) in Raipur, Chhattisgarh. The contract, signed on June 5th, 2024, entails supplying equipment like boilers, turbines, generators, and their accompanying control and instrumentation systems. BHEL will also supervise the erection and commissioning of the entire power plant. The boilers will be manufactured at BHEL's Trichy facility, while the turbine generators will be built at their Haridwar plant. The project follows a staggered delivery schedule with Unit-1 being delivered in 35 months and Unit-2 in 41 months.

Earlier, In a major push towards coal gasification and India's self-reliance initiatives, Bharat Heavy Electricals Ltd (BHEL) and Coal India Ltd (CIL) formed a joint venture named Bharat Coal Gasification and Chemicals Limited (BCGCL) with CIL holding the majority stake (51 per cent) and BHEL holding the remaining (49 per cent). BCGL, with an authorized capital of Rs 11 crore, will focus on converting coal into chemicals like ammonium nitrate through a syngas production process. Notably, BHEL's prior technology transfer agreement with Bhabha Atomic Research Centre (BARC) for an indigenous hydrogen production system aligns with BCGCL's goal and positions BHEL to contribute further to India's green energy and self-sufficiency missions.

Today, shares of BHEL gained 8.97 per cent to Rs 278.15 per share from its previous closing of Rs 255.25 with an intraday high of Rs 292.45 and an intraday low of Rs 268.05. The stock’s 52-week high is Rs 322.35 and its 52-week low is Rs 81.80. The shares of the company saw a spurt in volume by more than 2.16 times on BSE.  

Also Read: 4:1 bonus shares in FY24; Rs 2,460 crore order book & FIIs bought 3.27 per cent stake: Multibagger engineering stock under Rs 21 surges over 4 per cent!

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 96,000. 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 83.10 to Rs 278.15 per share, the stock gave multibagger returns of 235 per cent to its investors.

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