BHEL shares surge after reports of winning Rupees 19,422 crore NLC power project

BHEL shares surge after reports of winning Rupees 19,422 crore NLC power project

Shares of Bharat Heavy Electricals Ltd (BHEL) surged 5% on Monday morning after reports suggested that the company won the Rupees 19,422 crore Talabira Power Project.

The Hindu Business Line had on Sunday reported that the company has bagged the contract and will build three ultra supercritical units of 800 MW each for NLC India at Talabira. The coal for the plant will be sourced from captive mines of Talabira.

BHEL’s market capitalisation can be justified only under a very bullish set of assumptions, Kotak Institutional Equities said in a note. “All scenarios show that BHEL’s net income will be far lower than its current market capitalisation”.

Shares of the company were trading 5.11% higher at Rupees 203.45 apiece as of 9:35 am.

In the first half of the current fiscal, BHEL had received orders worth Rupees 33,479 crore, more than double of the Rupees 12,310 crore orders bagged during the same period last fiscal. Fructification of diversification initiatives and revival of thermal power ordering led to robust order booking, the company said.