“Today, the stock market maintained a flat trend, with the BSE Sensex Index edging up by 0.07 percent to reach 73,855, while the NSE Nifty-50 Index saw a marginal increase of 0.06 percent, reaching 22,393. Amidst this mixed trading session in the broader market, the BSE Mid-Cap Index experienced a slight uptick of 0.18 percent, contrasting with a 0.68 percent dip in the BSE Small-Cap Index. Notably, the BSE Power Index emerged as the top gainer in the sectoral landscape.
One of the standout performers on the BSE was a multibagger PSU stock, witnessing an impressive surge of 14.20 percent, reaching a fresh 52-week high of Rs 269.35 per share. This surge was accompanied by a significant uptick in trading volume, exceeding 12.3 crore on both BSE and NSE as of 11:30 am, with BSE witnessing a volume breakout of over five times the average. With such momentum, investors are speculating whether this stock will surpass its 2007 high (Rs 390.66 per share on Wednesday, November 02, 2007), fueled by its recent multi-year breakout, sparking optimism and interest among investors regarding its potential trajectory.
The stock in focus is Bharat Heavy Electricals Limited (BHEL).
BHEL, a prominent public sector enterprise under the Ministry of Heavy Industries and Public Enterprises, has been a key player in India’s power sector for over six decades. With a strong track record in designing, engineering, and manufacturing a wide range of power generation equipment, BHEL has played a pivotal role in driving the nation’s economic growth.
In recent developments, Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL) signed a joint venture agreement to establish a company focused on coal-to-chemicals conversion. The initial project will involve setting up a 2,000-ton-per-day ammonium nitrate plant using BHEL’s technology. CIL will hold a majority stake (51 percent), with BHEL owning the remaining 49 percent. Both companies will have representation on the board, and CIL has committed to purchasing at least 75 percent of the plant’s ammonium nitrate production.
Additionally, Haryana Power Generation Corporation Limited (HPGCL) awarded Bharat Heavy Electricals Limited (BHEL) a contract worth over Rs 5,500 crore (excluding GST) for the expansion of a 1×800 MW ultra-supercritical thermal power plant unit at the Deen Bandhu Chhotu Ram Thermal Power Plant (DCRTPP) in Yamuna Nagar, Haryana. BHEL is responsible for the entire engineering, procurement, and construction (EPC) process, including supplying critical equipment such as boilers, turbines, generators, and auxiliary systems, as well as handling erection, commissioning, and civil works. The project aims for completion within 57 months.
Bharat Heavy Electricals Limited is a manufacturer of various power plant equipment, with a market capitalization of over Rs 93,000 crore and an order book of over Rs 1,08,618 crore as of December 31, 2023. The President of India’s portfolio holds a 63.17 percent stake, while the Life Insurance Corporation of India’s portfolio holds 9.62 percent as of December 2023.
The company has reported mixed financial results in its Quarterly Results (Q3FY24) and nine-month results (9MFY24). It has maintained a healthy dividend payout of 20.1 percent. With a price appreciation from Rs 67.63 to Rs 269.35 per share, the stock has delivered multibagger returns of 298.3 percent to its investors.
Please note: This article is provided for informational purposes only and should not be considered as investment advice. It is recommended that investors consult with certified financial experts before making any investment decisions.