BHEL shares rise by nearly 2% after securing Rs 6,100 crore project from NTPC

Bharat Heavy Electricals Ltd. (BHEL) witnessed a nearly 2% rise in share price in early trading on September 23, 2024. The spike came after the company secured a significant project from NTPC worth Rs 6,100 crore. The notification of award (NOA) from NTPC involves an 800 MW supercritical thermal power project under the Sipat Stage-III development.

EPC contract boosts investor confidence

The contract for BHEL involves extensive engineering, procurement, and construction (EPC) work. This includes the supply of critical equipment, erection, commissioning, and associated civil works. Investors showed renewed interest in the stock following the announcement, as the project is expected to strengthen BHEL's earnings pipeline. By 09:39 AM, BHEL shares were trading at Rs 270.70, a rise of Rs 4.55, or 1.71%, on the Bombay Stock Exchange (BSE).

Such large-scale contracts positively influence share market investment decisions, especially for long-term investors eyeing companies with robust order books. BHEL's win is a testament to its expertise in handling large thermal power projects, further securing its position in India's energy sector.

Growing momentum in BHEL's project portfolio

This latest contract from NTPC follows BHEL's Rs 11,000 crore deal with Adani Power Ltd. for the construction of three supercritical thermal power projects in Kawai, Rajasthan, and Mahan, Madhya Pradesh. Additionally, BHEL secured another contract in August for a 1,600 MW project with Damodar Valley Corporation (DVC) in Jharkhand.

BHEL's growing portfolio of high-value projects has made it an attractive option for share market investment. Investors seeking diversified exposure to India's energy infrastructure sector may view BHEL's strong order book and execution capabilities as a stable investment opportunity.

Key takeaways

• BHEL shares rose nearly 2% following the announcement of a Rs 6,100 crore NTPC project.
• The contract involves EPC work for an 800 MW supercritical thermal power project.
• BHEL's expanding order book makes it a potential candidate for long-term share market investment.
• Recent high-value contracts with Adani Power and Damodar Valley Corporation further enhance BHEL's market appeal.