BHEL on the surge

BHEL is buzzing today; from its close of Rs.214.45, it opened at Rs.215 and rose to an intraday high at Rs.221.25. Its 52-week high and low stands at Rs.335.40 and Rs.176 respectively.

BHEL announced that it received a Letter of Intent (LoI) from Chhattisgarh State Power Generation Company Limited (CSPGCL) for the Engineering, Procurement, and Construction (EPC) package of the 2x660 MW Korba West Supercritical Thermal Power Plant (STPP).

This contract, valued at approximately Rs.11,800 crore, encompasses the supply of supercritical equipment, including boilers, turbines, generators, and associated auxiliaries, along with electrical, Control & Instrumentation (C&I), and Balance of Plant (BoP) packages. BHEL is also responsible for erection, commissioning, and civil works, with commercial operations expected to commence within 60 months.

Following this, some analysts and Fund houses have reiterated their Buy on the stock as their reports confer that company could post exponential earnings growth over the next three years, driven by strong operating leverage and an expected increase in the order book to an all-time high of Rs.2.2 lakh crore by FY27.

These developments have bolstered investor confidence, contributing to the rise in BHEL's stock price today.