Shares of Bharat Heavy Electricals Ltd (BHEL) rose nearly 3% on Monday after PSU said it has inked a contract agreement with Adani Power Ltd. and its subsidiary (Mahan Energen Ltd.) for setting up three Supercritical Thermal Power projects (each of 2x800 MW rating) in Kawai, Rajasthan & Mahan, Madhya Pradesh. The value of three orders aggregate to more than Rs 11,000 crore excluding GST.
BHEL stock gained 2.61% to a high of Rs 303.90 against the previous close of Rs 296.15 on BSE. Total 4.38 lakh shares of the firm changed hands amounting to a turnover of Rs 13.15 crore. Market cap of the power equipment maker climbed to Rs 1.04 lakh crore.
The stock fell to a 52-week low of Rs 105.05 on August 25, 2023 and rose to a 52 week high of Rs 335.40 on July 9, 2024.
The contract agreement signed on 25 August 2024 relates to the supply of equipment (Boiler, Turbine, Generator) and Supervision of Erection & Commissioning for Three (3) power projects each of 2x800 MW based on Supercritical Technology at Kawai (Phase-II) Rajasthan & Kawai (Phase-III) Rajasthan of (APL) and at Mahan (Phase-III), Madhya Pradesh of MEL.
"The supply of projects is to be completed in 49 months (Kawai Phase-II), 52 months (Kawai Phase-III) and 55 months (Mahan Phase-III)," said BHEL in a communication to bourses.
The PSU stock has risen 184% in a year and gained 418.24% in two years. The multibagger stock is trading in neither in the overbought nor in the oversold zone, signals relative strength index (RSI) of BHEL stock which stands at 46.3.
BHEL is one of the largest engineering and manufacturing companies in India engaged in design, engineering, construction, testing, commissioning and servicing of a wide range of products and services with over 180 product offerings to meet the ever-growing needs of the core sectors of economy.