From Rs 20 to Rs 200: BHEL Touches 9-Year High Today

Bharat Heavy Electricals Limited is an integrated power plant equipment manufacturer engaged in the design, engineering, manufacture, erection, testing, commissioning, and servicing of a wide range of products and services for the core sectors of the economy. It is the flagship engineering and manufacturing company of India, owned and controlled by the Government of India. Today, the company experienced a significant surge in its share price.

At the start of the day’s trading session, the stock opened at Rs 199.35 per share, indicating an approximate 3% increase compared to Friday’s closing figure of Rs 193.45 per share on the BSE. As of the time of writing this article, the shares are currently at Rs 203.60 per share on the BSE.

Furthermore, the stock touched its 9-year high of Rs 200 per share today. Moreover, the stock was trading around Rs 20 during the COVID-19 fall, and from this low point, it has shown remarkable strength, reaching a significant milestone of Rs 200 per share today. However, it is still trading down by around 48% from its all-time high price of Rs 390.65 per share, which was registered in the year 2007.

The company’s current market capitalisation stands at Rs 70,738 crore, and the stock has generated an impressive return of 157% during the past one year and around 426% return in the past three years.

Trading and Delivery Volumes (Daily):

Business Overview 

Bharat Heavy Electricals Limited is an engineering and manufacturing company. It is an integrated power plant equipment manufacturer. Its segments include Power and Industry. The Power segment comprises businesses in thermal, gas, hydro, and nuclear power plants. The industry segment caters to equipment supplies for various industries, including transportation, transmission, defence and aerospace, power, renewables, downstream oil and gas, energy storage, electric mobility, among others, and petrochemicals. The company is engaged in the design, engineering, manufacture, erection, testing, commissioning, and servicing of various products and services for various sectors such as power, transmission, industry, transportation, renewable energy, water, oil and gas, and defence and aerospace. It manufactures turbines, steam generator sets (including auxiliary plants for steam generators), electric motors, transformers, and electricity distribution and control apparatus.

Financial Performance

In the second quarter of FY24, the company reported revenues of Rs 5,125 crore, reflecting a decline of 1.5% YoY compared to the same quarter in the previous year, when the revenue stood at Rs 5,203 crore. The company posted an operating loss of Rs 388 crore for the quarter, in contrast to an operating loss of Rs 244 crore in the corresponding quarter of the previous year. Furthermore, the company reported a net loss of Rs 238 crore, compared to a net profit of Rs 12 crore in the same period last year.

In terms of ownership, the Promoter holds 63.17%. The FIIs and DIIs hold 7.23% and 15.99%, respectively, while the remaining 13.62% is held by public investors, as per the most recent update.

Stock Price Chart (Monthly)

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.