BHEL shares clock 52-week high as PSU continues to woo Street with its robust order book

BHEL shares were in high demand on Thursday after the company bagged an order from NTPC that analysts believe will further boost its strong order book.

Bharat Heavy Electricals Ltd (BHEL), a state-run engineering and manufacturing company, operates in a host of areas including thermal, gas, hydro power, nuclear power, transportation, renewable energy, defense and aerospace. | Image: bhel.com

Bharat Heavy Electricals Ltd (BHEL) touched a fresh peak on Thursday after the state-run engineering and manufacturing company won a deal from NTPC. The BHEL stock gained by as much as Rs 2.8, or 2.4 per cent, to Rs 121.5 apiece on BSE, surpassing a 52-week high touched the previous day.

Brokerage Antique continued with its 'buy' rating on BHEL, citing the company's steadily expanding order book, and raised its price target for the stock by 43.6 per cent to Rs 158 apiece, implying an upside of 41.6 per cent from its previous close.

Why Antique has increased BHEL's rating

Antique has increased BHEL's target due to a continuous increase in its orders. The company has got an order for 2,800 MW supercritical thermal power projects Stage-II.

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The company will do all the work like design, engineering, manufacturer, supply, construction, testing for the project.

This project will be built in Chhattisgarh, Lara. While Unit 1 is scheduled to be completed in 48 months, its Unit 2 work is also scheduled to be finished in 52 months.

The estimated cost of the project is Rs 15600 crore.

Strong order book

Antique says BHEL has a strong order book as last week, it received an order of Rs 2,242 crore from NHPC for making 12x240 MW electro-mechanical (25 August).

Earlier, an order of Rs 4,000 crore was also received from Adani Power. It also expanded the BHEL-GE partnership to make gas turbines running since 1986.

Nuvama, ICICI Securities upgrade BHEL's target prices

Nuvama also increased the target for the company as it raised the target price from Rs 85 to Ts 125 with a 'buy' call.

ICICI Securities has also given a 'buy' call to BHEL, increasing it target price from Rs 110 to Rs 120.

Segmental order book contribution

The company's total order book stands at 1.01 lakh crore.

In the order book, the largest segmental contribution is coming from power at 68.2 per cent. Industry is the second-biggest contributor with a 27.4 per cent stake, while 4.4 per cent contribution comes from exports.

BHEL's share price doubles in 1 year

The share price of the PSU has gained 20 per cent in the last 10 days; 43 per cent in the last three months, doubled in the last one year.

The Nifty 50 index, meanwhile, has slid 0.28 per cent in the last 10 days, jumped 4.36 per cent in the last 3 months, and soared 10.83 in the last one year.

(This story will be updated shortly)

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