BHEL rallies on strong order book; rises 10% in two days

NEW DELHI: Shares of Bharat Heavy Electricals Ltd ended with gains of over 5 per cent in a muted market on Tuesday after the company said it has a strong order book for execution in the coming years, notwithstanding stagnation in the power sector and intense competition.

“The state-run major also said the ongoing controversy over coal allocation for power plants would not have any impact on its operations,” PTI reported.

“In recent weeks, there have been reports that some of the projects, for which BHEL is supplying equipment, could be impacted by coal block allocation issues,” said the report.

“Projects currently being executed by BHEL have the required coal linkages and are progressing satisfactorily,” the firm noted.

BHEL closed 5.3 per cent higher at Rs 225. It has hit an intraday low of Rs 213.55 and a high of Rs 226. The stock has surged nearly 10 per cent in the last two trading sessions.

“Despite stagnation in the power sector and intense competitive pressure in domestic and overseas markets, BHEL has a strong order book for execution in 2012-13 and beyond of over Rs 1,30,000 crore,” the company said in a statement on Thursday.

BHEL said from being one of the most rapidly growing sectors till last year, the domestic power sector has witnessed a sharp slowdown.