During Q2FY09 till date Bharat Heavy Electricals Ltd (Bhel) has bagged close to Rs9,135 crore worth of orders.
This includes orders from international utilities and its first 1,600MW (2x800MW) order from the Tamil Nadu Electricity Board based on super critical technology.
While the company has acknowledged Rs5,435 crore worth of orders, reports suggest that the company is also close to winning a Rs1,700 crore order from GVK Power (2x270MW).
This takes the company’s order backlog to a staggering 4.9x its FY2008 revenues. This provides strong visibility to BHEL’s revenues, going forward.
We maintain BUY on this scrip with a target price of Rs2,230.