President of India & LIC-backed multibagger PSU stock saw heavy buying with Rs 1,08,618 crore order book; will it hit its 2007 high as it has witnessed multi-year breakout?
From Rs 67.63 to Rs 269.35 per share, the stock gave multibagger returns of 298.3 per cent to its investors.
Today, the stock market was trading flattish with the BSE Sensex Index up 0.07 per cent at 73,855 and the NSE Nifty-50 Index up 0.06 per cent at 22,393. Amidst a mixed trading session in the broader market, the BSE Mid-Cap Index saw a slight uptick of 0.18 per cent, contrasting with the 0.68 per cent dip in the BSE Small-Cap Index. Notably, the BSE Power Index emerged as the top gainer in the sectoral landscape.
Among the top performers on the BSE, shares of a multibagger PSU stock soared impressively by 14.20 per cent, reaching a fresh 52-week pinnacle of Rs 269.35 per share. This surge was accompanied by a substantial uptick in trading volume, exceeding 12.3 crore on both BSE and NSE as of 11:30 am, with BSE witnessing a volume breakout of over five times the average. With such momentum, speculation arises whether this stock will surpass its 2007 high (Rs 390.66 per share on Wednesday, November 02, 2007), considering its recent multi-year breakout, igniting investor optimism and interest in its potential trajectory.
The stock name is Bharat Heavy Electricals Limited (BHEL).
BHEL, a leading public sector enterprise under the Ministry of Heavy Industries and Public Enterprises, has been at the forefront of India's power sector for over six decades. With a strong track record in the design, engineering, and manufacturing of a wide range of power generation equipment, BHEL has played a pivotal role in powering the nation's economic growth.
Recently, Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL) signed a joint venture agreement to establish a company focused on converting coal into chemicals. The initial project will be a 2,000-ton-per-day ammonium nitrate plant using BHEL's technology. CIL will hold a majority stake (51 per cent) with BHEL owning the remaining 49 per cent. Both companies will have representation on the board and CIL guarantees to purchase at least 75 per cent of the plant's ammonium nitrate production.
Additionally, Haryana Power Generation Corporation Limited (HPGCL) gave an order to Bharat Heavy Electricals Limited (BHEL) a contract valued at over Rs 5,500 crore (excluding GST) for the establishment of a 1x800 MW ultra-supercritical thermal power plant expansion unit at the Deen Bandhu Chhotu Ram Thermal Power Plant (DCRTPP) in Yamuna Nagar, Haryana. BHEL is entrusted with the entire engineering, procurement, and construction (EPC) process, which includes providing crucial equipment such as boilers, turbines, generators, and auxiliary systems, as well as handling erection, commissioning, and civil works. The project aims for completion within 57 months.
Bharat Heavy Electricals Limited manufactures various power plant equipment. The company has a market cap of over Rs 93,000 and its order book stands at over Rs 1,08,618 crore as of December 31, 2023. The President of India’s portfolio owns 63.17 per cent and Life Insurance Corporation of India’s portfolio owns 9.62 per cent as of December 2023.
The company has reported a mixed set of numbers in its Quarterly Results (Q3FY24) and nine-month results (9MFY24). The company has been maintaining a healthy dividend payout of 20.1 per cent. From Rs 67.63 to Rs 269.35 per share, the stock gave multibagger returns of 298.3 per cent to its investors.
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Disclaimer: The article is for informational purposes only and not investment advice.
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