BHEL Gets Rs 7,500-Crore Order From Gujarat Discom, Stock Gains
BHEL won the contract through a competitive bidding process.
Bharat Heavy Electricals Ltd. received a new order worth Rs 7,500 crore from Gujarat State Electricity Corp. for supply of equipment and civil works.
The company was given a Letter of Intent for EPC package for the 800 MW Ukai extension unit No. 7 in Tapi district of Gujarat, according to a stock exchange filing.
The order involves supply of boiler, turbine, generator and associated auxiliaries along with electrical and C&I, balance of plant packages and erection and commissioning works.
BHEL won the contract through a competitive bidding process. The commercial operation of the plant will be within 54 months.
Last month, the company secured a Rs 6,700-crore order from Singareni Collieries Co. for the engineering, procurement, and construction package for the Singareni Thermal Power Project, Stage II (800 megawatt) at Mancherial district in Telangana.
It involves supply and erection, testing and commissioning works—boiler, turbine, generator, FGD, and associated auxiliaries—along with electrical and C&I, balance of plant packages, and associated civil works.
BHEL Share Price Up
Shares of Bharat Heavy Electricals rose 3.45% intraday to Rs 213.67 apiece. It was trading close to that level by 10:50 a.m. The benchmark Nifty 50 was up 0.7%.
The stock has fallen 10% on a 12-month basis and 7% on a year-to-date basis. The relative strength index was at 55.
Seven out of 17 analysts tracking the company have a 'buy' rating on the stock, two suggest 'hold' and eight recommend a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 6.2%.
