Bharat Heavy Electricals Ltd (BHEL) is once again in the spotlight, following the announcement of a major contract win from NTPC. The engineering giant has bagged a Rs 6,100 crore order for the 1×800 MW Sipat Supercritical Thermal Power Project (Stage-III), a development that sent its stock up by over 2% in early trading on Monday.
At 10:35 AM, BHEL shares were trading at Rs 271.25, up by 1.92% on the Bombay Stock Exchange (BSE), showing strong momentum after the news broke. This rise follows a recent trend of gains for the company, with its shares trading higher than key moving averages over 5, 10, 20, 50, 100, and 200 days—reflecting robust investor confidence.
Breaking Down the Contract
The recently secured NTPC project involves extensive Engineering, Procurement, and Construction (EPC) works, which include the supply of critical equipment, plant erection, commissioning, and civil works. The project value, which exceeds Rs 6,100 crore (excluding GST), is expected to be completed within 48 months from the date of the contract’s notification of award (NOA).
BHEL’s expertise in the field of power equipment and thermal projects makes it well-suited for such a large-scale initiative. With an installed base of over 1,68,000 MW of thermal power plants across India, the company continues to dominate the EPC market.
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BHEL’s Recent Wins: A Trend of Growth
This NTPC order is part of a string of recent successes for BHEL. Last month, the company secured a massive Rs 11,000 crore contract with Adani Power and its subsidiary, Mahan Energen Ltd., for three supercritical thermal power projects of 2×800 MW capacity in Kawai, Rajasthan, and Mahan, Madhya Pradesh.
Additionally, in August, BHEL bagged another significant deal—a 2×800 MW supercritical thermal power project in Koderma, Jharkhand, from Damodar Valley Corporation (DVC). The order was awarded through international competitive bidding and includes the supply, erection, and commissioning of key equipment, as well as advanced emission control systems.
Stock Outlook: Is BHEL a Buy?
Analysts have been bullish on BHEL’s stock performance in light of these ongoing project wins. LKP Securities recently predicted that the stock could climb to Rs 288 in the near-to-short-term, provided it stays above the Rs 254 support level. Currently trading at Rs 271.25, the stock has shown resilience and potential for further growth. However, a dip below Rs 254 could push it back into a consolidation phase.
The momentum behind BHEL stock comes from a combination of factors, including its growing order book, proven ability to deliver on major projects, and its critical role in India’s energy infrastructure development. As demand for energy continues to rise, BHEL’s ongoing and future projects position the company for long-term success.
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Key Takeaways for Investors
For stock market enthusiasts and long-term investors, BHEL’s recent contract wins serve as a reminder of the company’s capability to secure and execute large-scale, high-value projects. The ongoing push for renewable and thermal energy infrastructure in India, coupled with BHEL’s strategic wins, could provide further upward pressure on the stock.
With a solid track record and a healthy pipeline of projects, BHEL looks like a strong contender for portfolio growth, especially as the company continues to capitalize on its leadership in the power sector.
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