BHEL stock gains nearly 4% after Ministry of Defence signs naval contract worth ₹2,956 crore
Shares of Bharat Heavy Electricals (BHEL) gained sharply on positive developments, including a contract with the Ministry of Defence for the procurement of upgraded weapons for the Indian Navy and a collaboration with Electricité de France for the Jaitapur Nuclear Power Plant Project.
Shares of Bharat Heavy Electricals (BHEL), a leading engineering and manufacturing company in the energy and infrastructure sectors, gained sharply in Wednesday's trade on multiple positive developments.
The Ministry of Defence on Tuesday signed a contract with the company for the procurement of 16 upgraded Super Rapid Gun Mount (SRGM) along with associated equipment and accessories for the Indian Navy under the ‘buy’ (Indian) category at a total cost of ₹2,956.89 crore.
The upgraded SRGM, slated for production at BHEL's Haridwar plant, represents a medium-caliber anti-missile and anti-aircraft point defence weapon system renowned for its sustained rate of fire and high accuracy. Designed to engage multiple threats in complex scenarios, the system has demonstrated exceptional performance against missiles and agile fast-attack crafts, as highlighted by the Ministry of Defence in a press release.
"These upgraded SRGMs are earmarked for installation on both existing and newly constructed Indian Navy vessels, with Mazagaon Dock Shipbuilders Ltd., Mumbai, and Garden Reach Shipbuilders & Engineers, Kolkata, playing key roles in the integration process."
"The project will generate employment of two and a half lakh mandays over a period of five years and encourage active participation of various Indian industries, including MSME, thus significantly contributing to the government's efforts to achieve 'Atmanirbharta' in defence," the ministry said.
Beyond the naval contract, BHEL has embarked on another significant venture by signing a Memorandum of Cooperation (MoC) with Electricité de France, a French state-owned company. This collaboration aims to explore opportunities within the Jaitapur Nuclear Power Plant Project, a strategic initiative led by the Nuclear Power Corporation of India.
The Jaitapur Nuclear Power Plant Project in Maharashtra is a light water reactor and a collaboration between the Indian and French governments. It has a capacity of 9.6 gigawatts and aims to provide electricity to around 70 million households.
Following these multiple positive developments, the stock began today's session at ₹161 apiece, compared to the previous closing price of ₹156. The stock rallied further during the first-hour trade to reach ₹161.95 apiece, up by 3.81%. This year, so far, the stock has risen by 102%.
At 10:30 AM, the stock was trading with a gain of 2% at ₹159.25 apiece.
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