PL Stock Update – BHEL bags order worth Rs22.4bn from NHPCL

PL Stock Update – BHEL – Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd

BHEL bags order worth Rs22.4bn from NHPCL

Order details:

✳️Design, engineering, manufacturing, supply, erection and commissioning of Electro-Mechanical package involving Turbine, Generator, Digital Governing System, Static Excitation System, Transformers, Bus Reactors, Gas Insulated Switchgear, Outdoor Pot yard & Switchyard Equipment’s and Electrical & Mechanical BoPs for 12x240 MW Electro-Mechanical Works of Dibang Multipurpose Project at Roing in Arunachal Pradesh.

Pl view

With this order YTD orders came in at ~Rs218bn. We believe, pickup in thermal power orders and companies focus on diversification in segments such as railways, defence, nuclear, hydro augurs well for company in long term. The stock is currently trading at PE of 42x/23.3x FY24/25E. We have Reduce rating on stock with TP of Rs67.