Multibagger PSU stock in news today on Rs 10,000-crore contract win

Shares of Bharat Heavy Electricals Ltd (BHEL) are in focus today after the multibagger PSU said it has been awarded a Rs 10,000 crore contract by Damodar Valley Corporation (DVC) to set up the 2x800 MW Koderma phase-II thermal power station in Koderma district, Jharkhand.

BHEL stock ended at Rs 317.25 on Friday, higher by 1.96% on BSE. Total 6 lakh shares of the firm changed hands amounting to a turnover of Rs 18.91 crore. The stock fell to a 52-week low of Rs 94.80 on August 7, 2023 and a 52 week high of Rs 335.40 on July 9, 2024.

The PSU stock has risen 213% in a year and gained 60% in 2024. The multibagger stock is trading neither in the overbought nor in the oversold zone, signals relative strength index (RSI) of BHEL stock which stands at 55.3. BHEL shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. BHEL stock has a beta of 1.6, indicating high volatility in year.

Market cap of the power equipment maker climbed to Rs 1.10 crore.

"Bharat Heavy Electricals Limited (BHEL) has received a Letter of Intent (LOI) from Damodar Valley Corporation (DVC) for setting up the 2x800 MW Koderma Phase-II Thermal Power Station at Koderma district, Jharkhand on an EPC basis," according to a stock exchange filing.

The project involves the supply of crucial equipment, including boilers, turbines, generators, and associated auxiliaries, along with electrical and control & instrumentation (C&I) systems, and balance of plant packages.

BHEL will also be responsible for erecting, commissioning, and civil works required for the power station. The project is scheduled to be completed within 52 months. The total value of the order exceeds Rs 10,000 crore, excluding taxes and duties.