Rs 1,35,000 crore order book: Keep this LIC-backed multibagger heavy electrical equipment stock under the radar; Scrip jumps over 6 per cent!

From Rs 97.25 (52-week low) to Rs 304.60 per share, the stock gave multibagger returns of over 200 per cent to its investors.

On Wednesday, shares of this multibagger heavy electrical equipment company gained 6.44 per cent to Rs 305.80 per share from its previous closing of Rs 287.30. The stock’s 52-week high is Rs 335.40 and its 52-week low is Rs 97.25. At the closing bell, shares of the company were trading at Rs 304.60 per share, up 6.02 per cent.

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 substantial Rs 10,000 crore contract from Damodar Valley Corporation (DVC) to construct the 2x800 MW Koderma Phase-II Thermal Power Station in Jharkhand. BHEL will be responsible for the entire project, including designing, procuring equipment (boilers, turbines, generators, etc.), constructing, and commissioning the power plant. This domestic project is expected to be completed in 52 months. Notably, BHEL has also secured two similar contracts, each valued at over Rs 7,000 crore, from Adani Power Limited for thermal power plants in Uttar Pradesh and Chhattisgarh. These projects are also being executed on an EPC basis, with expected completion timelines of 35 and 41 months for the first and second units, respectively.

Additionally, the Board of Directors of BHEL set Friday, August 9, 2024, as the record date for distributing a final dividend of Rs 0.25 per share for the 2023-24 fiscal year. As the President of India holds 63.17 per cent of BHEL shares, amounting to 2,19,96,50,402 shares, they will receive a dividend of Rs 54,99,12,600.

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 97.25 (52-week low) to Rs 304.60 per share, the stock gave multibagger returns of over 200 per cent to its investors.

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

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