BHEL hits 52-week high after Rs 15,530-crore NTPC order; stock up 12% in 5 days

Shares of Bharat Heavy Electricals Limited (BHEL) jumped 1.7% to hit a 52-week high of Rs 121.15 on August 31 after the engineering power supply won orders worth Rs 15,530 crore from the state of NTPC for a thermal power plant. The order comes days after BHEL received work worth Rs 2,242 crore from NHPC and Rs 4,000 crore from a subsidiary of Adani Power.
This sock is up nearly 6% in the past 5 days, apparently thanks to a frenzy of orders. Shares closed at Rs 118 on Aug 30. BHEL’s last NTPC order will be active for 8 years. Win order

BHEL will establish a Phase II 2 x 800 MW supercritical thermal power project at Lara in Chhattisgarh for NTPC. The order was won through international bidding.
The work includes the design, engineering, production, supply, construction, testing and commissioning of civil and structural works for the EPC package with steam generators capable of co-firing biomass and steam. turbines, generators and ancillary equipment, emission control systems, controls and instrumentation. , factory batch balancing, etc. Unit-1 will be completed in 48 months and Unit-2 in 52 months.
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BHEL will also supply equipment such as boilers, turbines and generators and will oversee, construct and operate the 2 x 800 MW power project of Mahan Energen Ltd, a wholly owned subsidiary of Mahan Energen Ltd. Adani Power, at Bandhaura in Madhya Pradesh, the company said. Call to action

Brokerage Prabhudas Lilladher said the resumption of thermal power orders and the company’s focus on diversifying into segments such as railways, defense, nuclear and hydropower bode well in the long run.
The stock is trading at a PE of 46.8x/26.6x FY24/25E. However, Prabhudas Lilladher has ‘cut’ his call for BHEL with a price target of Rs 67.