Rs 1,60,157 Crore Order Book Multibagger Stock: LIC and Government Backed Heavy Electrical Equipment Company Bags New Orders Worth Over Rs 7,500 Crore

This multibagger stock has delivered impressive 885 per cent returns over the 5 years.

Bharat Heavy Electricals Ltd (BHEL) has secured a significant Letter of Intent from Gujarat State Electricity Corporation Limited (GSECL) for an EPC package of a 1x800 MW Ukai Extension Unit-7 in Tapi District, Gujarat. This contract, valued at approximately Rs 7,500 crore, involves the supply of crucial equipment such as boilers, turbines, and generators, alongside associated auxiliaries and civil works. The project is set for commercial operation within 54 months, marking a substantial addition to BHEL's existing order book, which stands at Rs 1,60,157 crore as of Q2 FY25.

BHEL, a government-owned entity, is a key player in the power sector, contributing 53 per cent of India's total installed conventional capacity. The company continues to expand its footprint across various sectors, including power, industry, and renewables, with a strategic focus on scaling up its business in the hydro segment and diversifying into the hydrogen economy. Despite a challenging competitive landscape, BHEL's robust product portfolio and strategic initiatives, such as its entry into coal gasification and technology licensing agreements, position it for sustained growth.

As of 21 March 2025, BHEL's stock was traded at Rs 212. The stock has a 52-week high of Rs 329.25 and a 52-week low of Rs 178.9. This multibagger stock has delivered impressive 885 per cent returns over the past 5 years.

Bharat Heavy Electricals Ltd is a leading power plant equipment manufacturer in India, with a strong presence in the power, industry, and renewable energy sectors. The company, owned by the Government of India, has a vast installed base of electricity utility projects, contributing significantly to the nation's power capacity. BHEL's product offerings include steam generators, turbines, and power plants, catering to various industries. The company is actively pursuing strategic initiatives, such as entering the coal gasification sector and expanding its hydrogen business. With a robust order book and a focus on technological advancements, BHEL is well-positioned to maintain its leadership in the engineering and manufacturing space.

BHEL has a market capitalisation of Rs 71,887.19 crore. The stock has delivered a 3-year return of 307.2 per cent but has seen a 1-year return of -8.16 per cent.
With a PE ratio of 142, the company trades at a premium compared to the industry PE of 53. The company has a ROCE of 3.37 per cent and an ROE of 1.13 per cent.

Investors must keep this Large-Cap PSU stock on their radar.

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