Rs 1,60,000 crore order book: President of India-backed heavy electrical equipment stock surged 4.9 per cent; Reports a turnaround net profit in Q2FY25

From Rs 136.40 (52-week low) to Rs 226.05 per share, the stock is up by 66 per cent.

On Tuesday, shares of this multibagger heavy electrical equipment company surged 4.90 per cent to Rs 233.30 per share from its previous closing of Rs 222.45. The stock’s 52-week high is Rs 335.40 and its 52-week low is Rs 136.50. At the closing bell, shares of the company were trading at Rs 226.05 per share, up 1.62 per cent with a spurt in volume by more than 1.20 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) 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.

Recently, BHEL has secured a significant contract from NTPC Ltd. for the design, engineering, manufacturing, supply, erection, commissioning, and civil construction of the Main plant package for the 3x800 MW Telangana Stage-II supercritical thermal power plant. This project marks another milestone in BHEL's long-standing partnership with NTPC, with BHEL contributing substantially to NTPC's thermal power installations. As India's leading power equipment manufacturer, BHEL's expertise and commitment to excellence will play a crucial role in enhancing India's energy security and realizing the goal of self-reliance in the power sector.

The company has a market cap of over Rs 78,000 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. From Rs 136.40 (52-week low) to Rs 226.05 per share, the stock is up by 66 per cent. Investors should keep an eye on this PSU stock.

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