BHEL’s Stock Rises 4.3% on Rs 4,000 Cr Adani Power order

Bharat Heavy Electricals Limited (BHEL) witnessed a 4.3% surge in its share price in early trade on March 28 following a significant Rs 4,000-crore order from Adani Power. This order marks a strategic move for BHEL, further solidifying its position in the power sector.

The Adani Power Order

BHEL secured a crucial order from Adani Power for setting up the 2×800 MW Raigarh Phase-II thermal power plant in Raigarh, Chhattisgarh. The order includes the supply of equipment such as boilers, turbines, and generators, along with supervision of erection and commissioning for the project based on supercritical technology.

Manufacturing at BHEL’s Plants

The boilers and turbine generators for the Raigarh Phase-II project will be manufactured at BHEL’s Trichy and Haridwar plants. The project is divided into two units, with Unit 1 scheduled for execution in 31 months and Unit 2 in 35 months.

Recent Wins

This order comes on the heels of another significant win for BHEL, as the company recently bagged an order for setting up the 1,600-MW Singrauli Supercritical Thermal Power Plant (STPP) Stage-III from NTPC. This plant will be adjacent to the existing 2,000-MW thermal power station (TPS) at Singrauli in Sonbhadra district of Uttar Pradesh.

Financial Snapshot

As of December 2023, the shareholding pattern of BHEL includes the President of India holding 63.17%, Foreign Institutional Investors (FIIs) holding 7.04%, Domestic Institutional Investors (DIIs) holding 17.58%, and the public holding 12.23% in the company. The stock has delivered impressive returns of 85.57% in the past 6 months and year-to-date (YTD) returns of 24%.

The morning surge in BHEL share price was short-lived, as by 10:03 am, it was quoting at Rs 247.25, up Rs 4.15, or 1.71%, on the NSE.

Conclusion

The recent order from Adani Power and other wins highlight BHEL’s prowess in the power sector. These developments not only enhance BHEL’s order book but also solidify its position as a key player in the industry. As the company continues to expand its footprint in the power sector, investors are optimistic about its growth prospects.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.