BHEL: Key Orders and Achievements Signal Positive Momentum

Introduction: Bharat Heavy Electricals Limited (BHEL), a prominent player in the power plant equipment manufacturing sector, has recently made significant announcements that underscore its growing presence and achievements. This report highlights two major developments involving substantial orders and a breakthrough in the ‘Make in India’ initiative.

1. Major Order for Dibang Multipurpose Project: On August 25, 2023, BHEL secured a substantial order worth Rs 2,241.86 crore. This order entails the comprehensive scope of designing, engineering, manufacturing, supply, erection, and commissioning of an Electro-Mechanical package. It encompasses crucial components like turbines, generators, digital governing systems, transformers, and various other equipment for the 12×240 MW Electro-Mechanical Works of the Dibang Multipurpose Project in Arunachal Pradesh. This achievement reflects BHEL’s prowess in executing complex projects in the power sector.

2. Milestone in ‘Make in India’ Initiative: BHEL has achieved a significant milestone by successfully manufacturing India’s first set of Catalysts for Selective Catalyst Reactors (SCR) designed to limit NOx emissions from thermal power plants. Previously, these catalysts were imported, but this accomplishment aligns with the ‘Make in India’ initiative of the Government of India. It signifies BHEL’s commitment to supporting domestic production and contributing to environmental sustainability.

3. Notable Order from Mahan Energen Limited: Prior to these recent developments, BHEL had secured another substantial order valued at Rs 4,000 crore. This order encompasses various critical components, including boilers, turbines, generators, and associated auxiliaries, as well as control and instrumentation components. The order was placed by Mahan Energen Limited, previously known as Essar Power MP Limited, a wholly-owned subsidiary of Adani Power Limited. This further solidifies BHEL’s position as a preferred supplier for major players in the power sector.

4. Impressive Stock Performance: BHEL’s stock has exhibited remarkable performance in recent years. Over the past three years, the company’s shares have delivered multibagger returns of over 150%. In the last six months alone, BHEL’s shares have provided approximately 50% returns to investors. This surge in stock performance highlights growing investor confidence in the company’s prospects.

Conclusion: BHEL’s recent achievements, including securing substantial orders and contributing to the ‘Make in India’ initiative, underscore its resilience and relevance in the power sector. The company’s successful foray into manufacturing SCR catalysts domestically further enhances its standing as an essential player in environmental sustainability. With its impressive stock performance and the breakout observed on the monthly chart, investors are well-advised to keep a close eye on BHEL as it continues to make strides in the Indian power equipment manufacturing industry.