BHEL Gets Letter Of Intent For Rs 6,200-Crore Order From Damodar Valley Corp

Bharat Heavy Electricals Ltd. has received a letter of intent for an order worth Rs 6,200 crore from Damodar Valley Corp. for a steam generator island for the Raghunathpur thermal power project in West Bengal.

The company has received a letter of intent for the steam generator island package for the 2x660 MW Raghunathpur thermal power station phase-II project in Purulia district, according to exchange filing on Tuesday.

The contract includes supply, testing and commissioning works for the steam generator and auxiliaries, ESP, FGD systems, ash handling systems along with electrical and C&I. The contract also includes associated civil works, as per the filing.

The broad consideration or size of the order is approximately Rs 6,200 crore, excluding taxes and duties.

Earlier on Feb. 9, the company had received a Letter of Intent from Rajasthan Part I Power Transmission Ltd. to design and execute the High Voltage Direct Current link along with associated AC substations to transmit renewable energy from Bhadla III (Rajasthan) and Fatehpur.

Shares of BHEL closed 2.21% lower at Rs 198.50 apiece on the NSE, compared to a 1.32% decline at the benchmark Nifty. It has fallen 12.23% in the last 12 months.

Seven out of the 17 analysts tracking the company have a 'buy' rating on the stock, two recommend 'hold' and eight suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 10.8%.