Bharat Heavy Electricals Ltd (BHEL) is experiencing an uptick in its share value, surging over 3% during Friday’s trading. This positive shift follows the announcement on March 28, revealing that BHEL has secured a Letter of Intent (LoI) from the Chhattisgarh State Power Generation Company (CSPGCL). The agreement pertains to the Engineering, Procurement, and Construction (EPC) package for the ambitious 2×660 MW Korba West Supercritical Thermal Power Plant (STTP).
Major Project Details
This extensive project, valued at approximately ₹11,800 crore, is set to be developed at the Hasdeo Thermal Power Station in Chhattisgarh’s Korba district. Key components of the initiative include:
- Supercritical equipment such as boilers, turbines, generators, and necessary auxiliaries.
- Comprehensive electrical, Control & Instrumentation (C&I), and Balance of Plant (BoP) packages.
- BHEL’s responsibility for the erection and commissioning of the facility, along with civil construction tasks.
The project aims to start commercial operations within 60 months, marking a significant step forward for BHEL in the power sector.
Recent Orders and Financial Growth
In addition to this recent development, BHEL also secured an order worth ₹7,500 crore for an 800 MW unit at the Ukai Supercritical Thermal Power Plant in Gujarat. This order, awarded by the Gujarat State Electricity Corporation Ltd (GSECL), is expected to begin operations within 54 months.
Impressive Q3 Results
BHEL’s financial performance has been noteworthy, showcasing a more than 100% increase in consolidated net profit to ₹134.70 crore for the December quarter of 2024-25. This surge is attributed to enhanced revenue streams, as the company reported profits of ₹60.31 crore for the same period in the previous year. Total income surged to ₹7,385 crore, up from ₹5,599.63 crore year-over-year.
Current Share Performance
As of today, BHEL shares opened at ₹215 on the BSE, reaching an intraday high of ₹221.25 and a low of ₹214.15. According to Anshul Jain, Head of Research at Lakshmishree Investment and Securities, the stock has successfully reclaimed a critical support level at 206 and maintains an upward trajectory with rising 10 and 20 EMAs.
Market Insights
- Technical indicators suggest a positive short-term trend, with BHEL trading above the 10, 20, and 50 EMAs.
- Jain notes that while trading volumes are still building, the overall market structure is encouraging.
- A potential move toward a short-term high of 236 seems plausible, provided sustained price action above 206 occurs, confirming bullish momentum.
In summary, BHEL’s recent achievements and financial growth signal a robust outlook for the company as it continues to secure significant contracts in the energy sector. Keep an eye on upcoming developments as this story evolves.
