BHEL shares recover from intraday low after NTPC; key details

Shares of Bharat Heavy Electricals Ltd (BHEL) regained some lost ground in Tuesday’s trade as the PSU emerged as the successful bidder for a major contract from NTPC Ltd. for the creation of the main complex of 3×800 MW Telangana Stage-II supercritical thermal power plant.

The stock, which had opened lower at a low of Rs 233.50, regained some of its lost ground and was later trading at Rs 237.85, still down 0.56 percent. BHEL said in a filing to BSE that its scope of work will include engineering, design, manufacture, supply, installation, commissioning and civil engineering.

As of now, BHEL has received Limited Notice of Proceeding (LNTP) from NTPC to start the basic engineering work of the main plant complex for this upcoming supercritical thermal power plant. The project further strengthens BHEL’s long-standing partnership with NTPC, where BHEL has contributed over 57 percent of NTPC’s thermal power plants across the country, the PSU said in a BSE filing.

“As India’s leading power equipment manufacturer with over 1,68,000 MW of utility capacity installed across the country, BHEL continues to play a key role in strengthening India’s energy security and supporting the vision of self-reliance in the power sector,” it said in a statement. said

BHEL’s Q2 Q2 performance was better on revenue due to the performance of its thermal order book.

“Keep ‘BUY’ given BHEL’s dominant role in India’s thermal capex revival with 25-35 GW of additional orders likely in FY25-27, including 7-8 GW of current tenders from NTPC, which means BHEL can complete FY25 is at least another 4-5 GW. We will assume deferred execution and reduce FY25/26/27 EPS by 9 percent/9 percent/1 percent;

PL Capital said it recently upgraded BHEL to ‘Accumulate’ from ‘Reduce’, given the recent sharp correction in the stock price, and suggested a revised price target of Rs 260 from Rs 264.

“BHEL reported strong revenue growth of 28.5% year-on-year and Ebitda margin turned positive to 4.2% in Q2FY25. During the quarter, the company continued to benefit from strong thermal opportunities in India, booking orders of up to Rs 30,000 crore after 7.2 years. With the government aiming to tender all 80 GW of the planned capacity by FY28, the pipeline remains healthy with 30 GW still available for bidding,” JM Financial said in an October report.