Shares of Bharat Heavy Electricals Ltd. rose over 2% on Friday with the stock trading Rs 394.70 intraday after the state-owned company secured an order worth over Rs 21,000 crore, excluding GST, from Meja Urja Nigam Pvt Ltd (MUNPL) for the 3x800 MW Meja supercritical thermal power project Stage-II in Prayagraj, Uttar Pradesh.
The contract covers the EPC package, including design, engineering, manufacturing, supply, construction, erection, testing and commissioning works. BHEL said the order was awarded by a domestic entity through international competitive bidding. The project is to be completed within 70 months from the date of the notification of award, translating to nearly six years.
MUNPL is a joint venture between NTPC Ltd and Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. BHEL clarified that the order does not fall under related-party transactions
This order is an addition to the one received on June 3 where they secured an order worth Rs 2,000-2,500 crore from a Nigerian entity. The contract agreement was signed with Nigeria's Dangote Petroleum Refinery & Petrochemicals Free Zone Enterprise on June 2, according to a regulatory filing.
The order pertains to design, manufacturing, supply and supervision of erection and commissioning of eight gas turbine generator packages for the petroleum refinery and polypropylene plant in Dangote Industries Free Zone, Nigeria, the company informed the stock exchanges. The contract will be executed within 26 months from the start date or the effective date of the agreement.
Bharat Heavy Electricals Ltd.
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The scrip rose as much as 2.86% to Rs 400.35 apiece intraday on Friday. It pared gains with the stock trading at Rs 394.70 at 11:48 am. This compares to a 0.06% rise in the NSE Nifty 50 Index.
It has risen 55.75% in the last 12 months and 36.55% year-to-date. Total traded volume so far in the day stood at 19.19 times its 30-day average. The relative strength index was at 44.17.
Out of 21 analysts tracking the company, eight maintain a 'buy' rating, three maintain a "hold", and 10 maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 349.26 implies a downside of 12.2%
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