New Delhi: Shares of Bharat Heavy Electricals rose 12.4% on Monday, the biggest single-day gain since May 2021, on news, the company is likely to get an order worth Rs 17,000 crore to construct a thermal plant.
Analysts said the momentum in the stock is bullish but advise investors against buying afresh at current levels.
BHEL, however, told stock exchanges after trading hours on Monday that the company “as of now” has not received this order from NTPC.
“The company had submitted a price bid on 21.12.2023, and is the only bidder, for the mentioned NTPC tender, which is an activity in the normal course of business,” said the state-owned firm in the release. “Submission of bid does not result into automatic bagging of an order.”
Shares closed at Rs 265.15 on the NSE Monday, after reaching a fresh 52-week high of Rs 275.85 during the day.
“The rise in Bhel shares happened after the investment approval for NTPC’s third phase of the 1600mw Singrauli Thermal Power project came through, for which Bhel was the sole bidder.
The stock has jumped nearly 34% so far in 2024, amid optimism that the government is focussing on both renewable energy and thermal capex given the rising demand.
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