BHEL shares rise 4% on bagging four Adani Power projects worth Rs 5,000-7,000 crore each

Bharat Heavy Electricals Ltd (BHEL) shares climbed in Wednesday's trade after the PSU received Rs 5,000-7,000 crore worth four projects each from Adani Power Ltd, excluding GST. In a filing to stock exchanges, BHEL said the contracts would cover supply of boiler, turbine and generator equipment with auxiliaries. Agreed services are also included as part of each of the four contracts.

At the end of September quarter, BHEL commanded an order book of Rs.2.58 lakh crore.

Following the development, BHEL shares rose 3.5 per cent to hit a high of Rs 413.45 apiece. Adani Power, on the other hand, added 0.97 per cent to Rs 197 apiece.

Improving execution across power and industrial businesses, coupled with operating leverage and better fixed-cost absorption, is expected to support Ebitda margin expansion and drive return on equity (ROE) improvement for BHEL from 6.2 per cent in FY26 to 15.6 per cent in FY28, Geojit said on Friday.

"BHEL's established engineering capabilities and diversified business portfolio reinforce its competitive positioning, while the resulting earnings transformation warrants a valuation re-rating. Therefore, we upgrade our rating BUY, with a revised target price of Rs. 453 based on 2.9x FY28E P/S," it said.

PL had on October 26 suggested a 'Reduce' rating on the stock with a target price of Rs 426. Macquarie had a 'Neutral' rating with a target price of Rs 420, while Kotak Institutional Equities had the lowest target price of Rs 160, along with a 'Sell' rating.

"Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) RegulaƟons, 2015, it is informed that BHEL has received orders from Adani Power Limited for 4 projects of 2x800 MW each," BHEL said today.