Rs 78,000 crore order book: Heavy buying in this multibagger heavy electrical equipment stock; Gains 3.6 per cent with a spurt in volume by more than 1.08 times on BSE

The company has reported a positive set of numbers in its quarterly results (Q4FY24) and annual results (FY24).

On Monday, shares of Bharat Heavy Electriclas Ltd (BHEL) gained 3.62 per cent to Rs 304.9 per share from its previous closing of Rs 294.25 with an intraday high of Rs 306.3 and its intraday low of Rs 289.2. The stock’s 52-week high is Rs 335.40 and its 52-week low is Rs 94.11. The shares of the company saw a spurt in volume by more than 1.08 times on BSE.

The Board of Directors of the company has fixed Friday, August 09, 2024 as the “Record Date” for the purpose of determining the eligibility of the members to receive final dividend of Rs 0.25 per share (i.e. 12.5 per cent on the paid up equity share capital) for the year 2023-24. The President of India owns 2,19,96,50,402 shares or 63.17 per cent stake in the company. Therefore 2,19,96,50,402 shares x Rs 0.25 per share = Rs 54,99,12,600 will be received as dividend by the President of India.

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.

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 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 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 94.11 (52-week low) to Rs 304.90 per share, the stock gave multibagger returns of over 200 per cent to its investors.

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

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