Rs 78,000 crore order book: LIC-backed multibagger heavy electrical equipment company bags new order worth Rs 10,000 crore from Damodar Valley Corporation
From Rs 94.89 (52-week low) to Rs 317.25 per share, the stock gave multibagger returns of over 200 per cent to its investors.
On Friday, shares of this multibagger heavy electrical equipment company gained 1.96 per cent to Rs 317.25 per share from its previous closing of Rs 311.15 with an intraday high of Rs 318.05 and its intraday low of Rs 310.70. The stock’s 52-week high is Rs 335.40 and its 52-week low is Rs 94.80.
Bharat Heavy Electricals Limited (BHEL) has secured a Letter of Intent (LOI) from Damodar Valley Corporation (DVC), a domestic entity based in Kolkata, for the Engineering, Procurement, and Construction (EPC) of the 2x800 MW Koderma Phase-II Thermal Power Station in Koderma district, Jharkhand, India. The scope of this domestic, competitively bid project, valued at over Rs 10,000 crore excluding taxes and duties, encompasses the supply of boilers, turbines, generators, and associated auxiliaries, along with electrical and C&I systems, balance of plant packages, erection, commissioning, and civil works. BHEL is expected to complete the project within 52 months.
Earlier, 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.
Furthermore, BHEL secured two substantial domestic orders, each exceeding Rs 7,000 crore, from Adani Power Limited. The first order involves supplying equipment and overseeing the erection and commissioning of a 2x800 MW thermal power plant in Mirzapur, Uttar Pradesh. The second order is for a similar plant in Raipur, Chhattisgarh. Both projects will be executed in stages, with Unit 1 completed in 35 months and Unit 2 in 41 months.
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About the Company
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 1,10,000. 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 94.89 (52-week low) to Rs 317.25 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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