Buzzing: BHEL outperforms benchmark, ahead of Q3 results

While the bourses are witnessing selling pressure during the first session on Tuesday, the state-run engineering and power manufacturing company Bharat Heavy Electricals Limited (BHEL) spikes up as much as 3.26 per cent to make a high of Rs 148.75 per share in the backdrop of bagging a big order from Surat Municipal Corporation (SMC) for installing solar Photo Voltaic (PV) rooftop systems totalling 3.6 MW.

Ten identified areas of installation will be within the limits of SMC, which would be required for Surat smart city of 1 MW. Reportedly, this is the single largest order of Rooftop PV system won by the company.

The company has already improved its annual manufacturing capacity of solar cells to 105 MW and solar modules to 226 MW. BHEL also offers engineering, procurement and construction (EPC) solutions for both off-grid and grid interactive solar PV power plants in utility scale and rooftop applications supported by plants located in different parts of the country including Lakshadweep islands.

The market is also expecting the company to turn profitable in its third quarter of FY1617, with operating income boosting the bottomline of the company. As per the experts, fixed costs are also expected to go down in this result. Investors will keep a close tab on its result which is going to be announced later on Tuesday. Any positive cue from its quarterly result may boost the confidence of investors further, which in turn will take the stock higher from here.