Why BHEL shares gained 7% today— Explained | Mint
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Business News/ Markets / Stock Markets/  Why BHEL shares gained 7% today— Explained

Why BHEL shares gained 7% today— Explained

BHEL shares gained seven per cent on Monday even after the company reported a net loss of ₹238 crore in the September quarter.

A BHEL power plant at Simhadri. (File Picture)Premium
A BHEL power plant at Simhadri. (File Picture)

BHEL Share Price Today: Shares of Bharat Heavy Electricals (BHEL) gained seven per cent on Monday, November 13, after the company announced its July-September quarter results for fiscal 2023-24 (Q2FY24) last week, reporting a net loss of 238 crore, compared to a net profit of 12.10 crore in the corresponding period last year.

The state-owned engineering firm's revenue from operations in the second quarter of current fiscal stood at 5,125.3 crore, registering a drop of 1.5 per cent, compared to 5,202.6 crore in the year-ago period. Total income dipped to 5,305.38 crore in the September quarter from 5,418.74 crore in the same period year ago.

Also Read: BHEL Q2 results: Company reports a net loss of 238 crore

In the power segment, the Indian PSU reported a 3 per cent increase in its consolidated revenue to 3927. 18 crore in the quarter under review against 3814.35 during a year ago period. However, there was a nominal decline in its industry segment's consolidated revenue to 1017.6 crore compared to 1113.60 crore.

Domestic brokerage firm Prabhudas Lilladher has assigned a ‘reduce’ rating to the BHEL stock. “BHEL’s Q2FY24 performance has been dismal and below estimates on all fronts, " said Research Analyst Amit Anwani. The brokerage firm further stated, “The stock is currently trading at 49.4x/28.1x FY24/25E and we have a ‘reduce’ rating."

Earlier this year, BHEL won an order for the country’s largest capacity hydro project against international competitive bidding (ICB). The order was towards the electro-mechanical (E&M) works of the country’s largest capacity hydropower project of 2,880 MW (12x240MW) --Dibang Multipurpose Project in Arunachal Pradesh from NHPC.

On Monday, shares of BHEL opened at 129 and gained 6.97 per cent to hit an intra day high of 138 apiece, against a 52-week high of 148.95 during the session. The stocks' previous close was 128.95.

Domestic equity benchmarks Nifty 50 and Sensex closed lower on Monday amid mixed global cues as elevated US treasury yields and the dollar dented the risk appetite of investors. The indices opened lower and traded in the negative territory throughout the session.

Nifty 50 closed at 19,443.55, down 82 points, or 0.42 per cent, while the Sensex closed the day with a loss of 326 points, or 0.50 per cent, at 64,933.87. Shares of BHEL settled 5.89 per cent higher at 136.55 apiece on the BSE.

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Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 13 Nov 2023, 05:03 PM IST
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