Multibagger stock: Government company Bharat Heavy Electricals Limited (BHEL) has received a new order of Rs 6,200 crore. This project will help increase power generation. This stock has given strong returns to its investors in long term. The company’s shares declined by 1.70 per cent on February 11 and the stock has closed at Rs 199.45 on BSE. With this, the market cap of the company has come down to Rs 69,449.75 crore. The stock of the stock is Rs 335.40 and 52-wheel is Rs 185.20.
BHEL gets details related to order
BHEL has received this new order from Damodar Valley Corporation (DVC) to Raghunathpur Thermal Power Station (Phase-2) Steam Generator Steam Generator Island Package. This power station will be located in Purulia in West Bengal and will have a capacity of 2 × 660 MW.
It has been given a contract of ₹ 6,200 crore (except tax and fee) through International Competitive Bidding. According to the stock exchange filing, “BHEL has received a letter of introduction (Loi) for the Steam generator island package of 2 × 660 MW Raghunathpur Thermal Power Station (Phase-2) from Damodar Valley Corporation (DVC).
Under this project, BHEL will have to do the supply, installation, testing and commissioning of steam generators and accessories. In addition, the company will also have to complete the electrostatic prescriptator (ESP), Flu Gas Dysulfration (FGD) system, ash handling system and related Electrical and Control Instrumentation (C&I) functions. BHEL will also be responsible for the concerned civil works. Executive timeline for the project has been fixed at 48 months and 52 months for the respective units.
BHEL quarterly results
In the December quarter of FY25, BHEL’s consolidated net profit doubled to Rs 134.7 crore, while the revenue rose by 32% to ₹ 7,277 crore. Although the revenue was better than the estimate, the net profit was below analysts’ estimate of ₹ 175 crore. Ebitda rose 40% to ₹ 304 crore, and the Ebitda margin increased from 3.9% to 4.2% (30 basis point increase). However, there was pressure on the margin due to a sharp increase in other expenses.
BHEL shares display
BHEL shares have been under pressure for some time. It has fallen by 33 percent in the last 6 months. This year, this stock has lost 15 per cent so far. Its investors have lost 8 per cent in the last one year. However, it has given a strong return of 450 per cent in the last 5 years. In February 2020, the company’s price was priced at Rs 36.20, which has increased to Rs 199.45 in today’s time. That is, the money of investors has increased by about five and a half times during this period.
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