BHEL shares rally after order win from Adani Power, check details

Shares of Bharat Heavy Electricals Ltd (BHEL) gained more than 3 per cent during the trading session on Monday after the company announced a major order win from Adani Power Ltd. The state-run capital major announced the order win after the trading session on Friday.

"Bharat Heavy Electricals (BHEL) has received a letter of award (LoA) from Adani Power (APL) for six thermal units of 800 MW," said the company in the exchange filing. The order has been given for supply of equipment (Steam Turbine Generator along with auxiliaries) and supervision of erection and commissioning, it said. The order is for a consideration of Rs 6,500 crore.

Following the announcement, shares of BHEL jumped nearly 3 per cent to Rs 272 on Monday, with its total market capitalization of nearing Rs 95,000 crore. The stock had settled at Rs 264.05 on Friday. The stock has gained nearly 55 per cent from its 52-week low hit nearly 3 months ago in March 2025.

Around 60 per cent of listed PSUs have clocked 5-7 years of positive returns since FY15. The positive breadth moderated to 34 per cent in FY25 from a high of 96 per cent in FY24. Over FY15-25, BHEL is among the PSU stocks which posted eight years of positive returns, said Motilal Oswal Financial Services.

Commenting on capital goods sectors, SBI Securities said that outlook remained strong backed by descent order book. "The companies have decent order backlog which provide healthy growth visibility. The order pipeline continues to remain healthy though export order conversion especially from Middle-East region take time given ongoing geological tensions," it added.

BHEL reported a 4 per cent year-on-year (YoY) rise in its standalone net profit for the fourth quarter ended March 2025, with a profit of Rs 504.05 crore. The state-run engineering and manufacturing player's revenue from operations for the March quarter stood at Rs 8,993.37 crore, up 8.9 per cent. It had also announced a dividend of Rs 0.50 per share for FY25.

Following its Q4 results, PL Capital had downgraded the stock to 'hold' from 'accumulate' rating post Q4 results, while Kotak Institutional Equites maintained its 'sell' rating on the stock with a revised target price of Rs 115. However, ICICI Securities had an 'buy' rating on the stock with a target price of Rs 324.