BHEL share price rises over 10% on Rs 2,500 crore order win, HSBC upgrade
BusinessToday.In August 27, 2019
BHEL share price rose in early trade today after the engineering and manufacturing firm said it won two orders worth Rs 2,500 crore for emission control equipment for thermal power plants from NTPC. Additionally, HSBC upgraded BHEL share to buy with a target price of Rs 60.
BHEL share price has gained 12.90% in last three days. BHEL share hit an intra day high of Rs 55 rising up to 10.11% on BSE. BHEL share has lost 32.37% during last one year and fallen 26% since the beginning of this year. The large cap share's market capitalisation rose to Rs 18,837 crore on BSE.
Five of 26 brokerages rate the stock "buy" or 'outperform', 13 "hold", eight "underperform" and four "sell", according to analysts' recommendations tracked by Reuters.
BHEL said the orders involve supply and installation of flue gas desulphurization (FGD) systems for 13 coal-based units at 2,600 MW Korba STPS Stage I, II & III in Chhattisgarh and 2,100 MW Ramagundam STPS Stage I & II in Telangana.
Meanwhile, HSBC in note said it continues to see near-term weakness in business fundamentals, with slow orders and bulging receivables. However, steep stock price correction coupled with balance sheet strength and long-term potential makes for an upgrade.
BHEL reported a consolidated net loss of Rs 218.93 crore for June quarter of this fiscal mainly due to lower revenues. The company had reported a profit of Rs 39.98 crore in the year-ago period. Total income of the company came down to Rs 4,673.38 crore in June quarter from Rs 6,116.21 crore a year earlier.
Revenue from power segment declined to Rs 3,491.54 crore in the quarter under review from Rs 4,636.18 crore in the year-ago period. Industry segment revenue dipped to Rs 919.55 crore from Rs 1,160.52 crore a year ago.
Edited by Aseem Thapliyal