BHEL shares in focus as CARE reaffirms ratings on CPs, bank facilities

Shares of Bharat Heavy Electricals Ltd (BHEL) will be in focus on Wednesday morning after the credit rating agency CARE  reviewed and reaffirmed its ratings on short and long term bank facilities and its commercial papers. 

On BHEL's Rs 9,100 crore long-term bank facilities, CARE retained its CARE AA- rating with outlook 'Stable'.  It suggested CARE AA- for long-term ad CARE A1+ for short term credit facilities worth Rs 51,000 crore. On Rs 5,000 crore commercial papers (CPs), it reaffirmed its CARE A1+ rating. 

To recall, the practice of intimation to stock exchange about reaffirmation of credit rating where no revision takes place is being discontinued. It is no more a regulatory requirement now. 

BHEL shares are down 4 per cent in the past one month but are up 54 per cent year-to-date. The multibagger PSU stock has delivered 250 per cent return in the past one year.

BHEL shares were in news earlier this month after the PSU said it won an order from Mirzapur Thermal Energy (UP) Private Limited for 2x800 MW thermal power project at Mirzapur Phase I, Uttar Pradesh. The supply of equipment such as boiler and turbine generator would be manufactured at BHEL’s Trichy and Haridwar plants, respectively, BHEL said recently.