BHEL share price

BHEL Share Price Surge: Rs 6,100 Crore Order from NTPC Boosts Stock by 3%

Big news for investors in Bharat Heavy Electricals Limited (BHEL)! The state-owned engineering giant saw a 3% rise in its share price on Monday, fueled by a significant Rs 6,100 crore order from NTPC. As BHEL secures this major contract for the Sipat Supercritical Thermal Power Project, what does it mean for the company and its investors? Let’s break it down.

BHEL Secures Rs 6,100 Crore Contract: A Game-Changer for Investors

On Monday, BHEL shares surged 3%, reaching Rs 274 on the BSE. The boost in the company’s stock price comes after it secured a massive Rs 6,100 crore order from NTPC Limited for the 1×800 MW Sipat Supercritical Thermal Power Project Stage-III. In a filing, BHEL confirmed receiving the Notification of Award (NOA) from NTPC for this significant project, which involves complex engineering, procurement, and construction (EPC) work. The project is expected to be completed within 48 months.

Multibagger Returns: BHEL’s Stunning Stock Performance

BHEL has been on a winning streak. The stock has delivered exceptional returns, climbing 117% in the last year and an astonishing 365% over the last two years. At 10:09 am on Monday, the stock was trading 1.4% higher at Rs 270 on the BSE. This makes BHEL one of the hottest multibagger stocks in India, continuing to generate solid returns for investors.

A Look at BHEL’s Recent Contracts: Expanding Its Power Portfolio

This latest NTPC contract is not the only win for BHEL. Last month, the company signed contracts worth over Rs 11,000 crore with Adani Power Ltd. and Mahan Energen Ltd. to set up three Supercritical Thermal Power projects, each boasting a 2×800 MW capacity in Kawai, Rajasthan, and Mahan, Madhya Pradesh. Additionally, in August, BHEL secured a 1,600 MW coal-based project from Damodar Valley Corporation (DVC) in Jharkhand’s Koderma district on an EPC basis.

Financial Performance: BHEL’s Q1 FY25 Results

Despite its strong order book, BHEL faced challenges in its Q1 FY25 earnings. The company’s net loss widened to Rs 211 crore, up from Rs 205 crore in the same quarter last year. However, revenue from operations rose by 9.6% to Rs 5,845 crore, showcasing its ability to continue driving growth despite setbacks.

Stock Analysis: Is BHEL a Buy Right Now?

Technically, BHEL’s relative strength index (RSI) currently sits at 40.9, indicating that the stock is in neutral territory. According to Trendlyne, an RSI below 30 is considered oversold, while an RSI above 70 suggests overbought conditions. Moreover, the Moving Average Convergence Divergence (MACD) is at -9.0, signaling a potential bearish trend.

BHEL’s stock is trading above its 5-day, 10-day, and 200-day simple moving averages (SMAs) but remains below its 20-day, 30-day, 50-day, 100-day, and 150-day SMAs, indicating mixed technical signals. Investors should weigh the long-term growth potential against the current technical outlook.

Conclusion:

BHEL’s Rs 6,100 crore NTPC order is just one of many wins that demonstrate the company’s dominant position in India’s power sector. With a robust order book, strategic partnerships, and expanding projects, BHEL remains a solid player in the energy space. Despite short-term challenges in earnings, the company’s long-term growth potential makes it an attractive stock for investors seeking exposure to India’s growing energy needs.

FAQs:

1.Who is the owner of BHEL?

A. Bharat Heavy Electricals Limited (BHEL) is an Indian central public sector undertaking and the largest government-owned electrical industrial technology. It is owned by the Government of India, with administrative control by the Ministry of Heavy Industries.

2.What does BHEL do?

A. The Company is engaged in the design, engineering, manufacturing, construction, erection, commissioning and servicing of a wide range of products, systems, and services in various areas including power generation (thermal, hydro, gas, nuclear, and solar PV), transmission, transportation, defense, aerospace, oil

3.How many projects has BHEL secured recently?

A. Apart from the NTPC order, BHEL has secured projects worth Rs 11,000 crore with Adani Power and Mahan Energen, and a 1,600 MW project from DVC.

4.What is BHEL’s net loss in Q1 FY25?

A. BHEL reported a net loss of Rs 211 crore in Q1 FY25, an increase from Rs 205 crore in the same period last year.

5.What is BHEL’s relative strength index (RSI)?

A. BHEL’s RSI is currently 40.9, indicating the stock is neither oversold nor overbought.

6.What does the MACD indicate for BHEL’s stock?

A. The MACD is at -9.0, signaling a bearish trend in the stock.

7.What is BHEL’s role in the power sector?

A. BHEL is a leading manufacturer of power plant equipment and is responsible for designing, manufacturing, and servicing various power projects.

8.What other projects has BHEL recently won?

A. BHEL recently signed contracts for Supercritical Thermal Power projects with Adani Power and secured a coal-based project with DVC.

9.What are BHEL’s major strengths in the market?

A. BHEL’s strengths include its long history, strong order book, and ability to deliver engineering, procurement, and construction (EPC) projects across India.

10.Is BHEL a good stock to buy?

A. BHEL’s long-term potential looks promising, but investors should consider short-term technical indicators and market conditions before making a decision.