The share price of Bharat Heavy Electricals Ltd (BHEL) today hit an intraday high of Rs 164.35 and ended at yesterday's close of Rs 164.
The stock surged from its low of Rs 160.65 after the company announced that it has bagged a $11.7 million order from Power Grid Corporation of India Ltd. About 1.70 lakh shares were traded on the BSE.
The order involves the supply and installation of series capacitors, control equipment and circuit breakers, and is scheduled to be completed in the next 18 months. It would help step up capacity of a transmission line linking the country's eastern and southern power grids.
Despite strong fundamentals, the share lost 12.8 per cent between September 6 and September 24, from Rs 188.10 to to Rs 164. This was mainly due to the negative sentiment towards the stocks of state-run firms (during that period), following the postponement of disinvestment programme in oil refiners, HPCL and BPCL, by three months.
Analysts said the delay in divestment had caused doubts in the minds of investors about the government's commitment towards the reforms programme. This led to a selloff in PSU counters.
Last week, BHEL bagged a Rs 190 crore order for centrifugal compressors from Gas Authority of India (Gail) for HBJ pipeline upgradation project.
BHEL's state-of the-art compressor package will be installed at Gail's booster station at Vijaipur, in Madhya Pradesh, for boosting the supply of LNG through the HBJ pipeline.
BHEL's scope of work in the order envisages design, manufacture, testing, supply and commissioning of three centrifugal compressors with drive-gas turbines. The equipment will be manufactured at BHEL's Hyderabad plant and the contract is to be executed in 13 months.
This month, BHEL bagged another contract worth nearly Rs 80 crore for an environment-friendly and energy-efficient co-generation power plant from Hindalco Industries.
The 41 mw plant would be set up for enhancing the capacity of Hindalco's captive co-generation power plant at Renukoot, in Sonebhadra district of Uttar Pradesh. The project would be commissioned by BHEL in 20 months.
