BHEL gains momentum on order wins, block deal

MUMBAI: Shares of capital goods major BHEL moved higher in a weak market on strong volumes after a block deal and hugh order win.

The company has bagged a contract worth Rs 7,900 crore related to 1,980 MW thermal power project in Jharkhand. The contract, won through international competitive bidding, is for NTPC's 1,980 MW North Karanpura super thermal power project.

“This would increase BHEL’s backlog by 7 per cent. The work will be completed in next five years. However, we are negative on the stock because of pressure on near-term earnings owing to decline in the company’s backlog-to-sales ratio in the past two years,” said Maybank KimEng report.

The company has also secured a contract worth Rs 321 crore for setting up a 206 MW Hydro Electric Project in the State of Punjab. The volume in the stock picked up following a block deal of 11.4 crore shares at Rs 167.20 per share on the BSE.

At 10:00 a.m.; the stock was at Rs 167.20, up 3.18 per cent, on the BSE. It touched a high of Rs 169.50 and a low of Rs 165.55 on volume of 11.44 crore shares against two-week average of 3.76 lakh shares