BHEL Share Drops Despite ₹9,500 Crore NTPC Win

Today, on March 6, 2024, the shares of Bharat Heavy Electricals Ltd (BHEL) fell around 6% despite the news that the heavy electrical equipment maker said it had bagged a ₹9,500 crore order from NTPC (National Thermal Power Corporation) Ltd.

BHEL Bags NTPC Contract

On Tuesday, BHEL announced that the company bagged a contract from NTPC Ltd. This order is to set up the Singrauli Super Thermal Power Project, Stage-III (2×800 MW) in Sonebhadra District in Uttar Pradesh. According to the contract, the order was for the supply of equipment, such as turbine, boiler, generator and associated auxiliaries, along with the balance of plant packages and more.

BHEL would be erecting and commissioning and also undertaking civil works. After this news broke out, the shares of both the companies, BHEL and NTPC, rose. BHEL stock closed at ₹268.90 on the NSE, higher by 1.64%, and NTPC stock rose by 1.23% to trade at ₹358.20.

On Wednesday, the share price of NTPC opened at an all-time high of ₹360.35, while BHEL also opened a 52-week high at ₹271.90 on BSE. However, despite a big contract and opening on a high note, both BHEL and NTPC couldn’t maintain the momentum during the day. Currently, on March 6, 2024, at 2 PM, BHEL’s share price is fluctuating around ₹252.70.

BHEL Is Not Alone

It is to be noted that out of 56 PSU stocks, 54 were trading in the red. The BSE PSU index trading around 18,993.71, down by 1.51%. This was against the ~-0.20% fall in the BSE Sensex. In addition to BHEL, Gujarat Gas Ltd and MMTC Ltd were some of the PSU stocks that tanked around 4-5% today.

About BHEL

Bharat Heavy Electricals Ltd is an integrated power plant equipment manufacturer that is involved in engineering, designing, manufacturing, testing, erection, commissioning, and servicing a comprehensive range of products and services for the core sectors of the economy. They offer services to sectors like transportation, power, renewable energy, defence, oil & gas and more. BHEL is the flagship engineering and manufacturing that is owned and managed by the Government of India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.