By BHEL is in the spotlight today following its announcement of winning a substantial order worth over Rs 3,500 crore from Mirzapur Thermal Energy (UP) Private Limited. The contract involves the development of a 2×800 MW thermal power project at Mirzapur Phase I in Uttar Pradesh. This news comes as a significant boost for the state-owned enterprise, marking a major achievement in its portfolio of large-scale infrastructure projects.
In response to this announcement, BHEL’s shares experienced a noteworthy rise, closing at Rs 255.25 on the BSE, up by 3.70% from the previous session. The trading volume was substantial, with 39.12 lakh shares changing hands, resulting in a turnover of Rs 94.49 crore. This surge in trading activity has propelled the company’s market capitalization to Rs 88,879 crore.
The financial year 2024 has been promising for BHEL, with the stock gaining 28.69% year-to-date. Over the past year, the company’s shares have soared by an impressive 198.40%, reflecting strong investor confidence and robust performance. Despite these gains, the stock is currently trading below its 5-day, 10-day, 20-day, and 50-day moving averages, indicating a short-term bearish trend. However, the shares remain above their 100-day, 150-day, and 200-day moving averages, suggesting a more favorable long-term outlook.
RSI stands at 39.4, indicating that the stock is neither overbought nor oversold. This suggests a balanced market sentiment towards BHEL’s shares, with potential for further movement depending on future developments.
The project at Mirzapur is set to be a landmark in BHEL’s extensive portfolio, with the company’s Trichy and Haridwar plants playing crucial roles in manufacturing boilers and turbine generators, respectively. BHEL will also oversee the erection and commissioning phases, underscoring its comprehensive capabilities in the power sector. This order highlights BHEL’s engineering prowess and its critical role in India’s infrastructure development.
The announcement of this order comes at a time when BHEL is already experiencing a strong market performance. The company’s shares reached a 52-week high of Rs 322.35 on May 21, 2024, a significant climb from its 52-week low of Rs 82.20 on June 6, 2023. This dramatic rise in share value underscores the market’s confidence in BHEL’s strategic direction and operational efficiency.
BHEL is recognized as one of India’s largest engineering and manufacturing companies, with a diverse range of products and services spanning design, engineering, construction, testing, commissioning, and servicing. With over 180 product offerings, BHEL caters to the core sectors of the economy, including power, transmission, industry, transportation, renewable energy, oil and gas, and defense.
The new order from Mirzapur Thermal Energy (UP) Private Limited reinforces BHEL’s position as a leader in the power equipment manufacturing sector. This contract not only adds to the company’s order book but also emphasizes its capability to deliver large-scale projects that are vital for India’s energy infrastructure.
Investors and market analysts will be closely monitoring BHEL’s progress on this project, as it represents a significant milestone for the company. The successful execution of the Mirzapur thermal power project could further solidify BHEL’s reputation as a reliable and capable player in the industry, potentially driving its shares to new heights in the future.
As BHEL continues to expand its footprint in the power sector, the company’s focus on technological advancements and operational excellence will be crucial in maintaining its competitive edge. The coming months will be pivotal for BHEL as it works towards fulfilling this landmark order and sustaining its growth trajectory in a dynamic and competitive market.
