Bhel drops despite bagging large order

Bhel drops despite bagging large order

Bharat Heavy Electricals fell 0.86% to Rs 2002.50 at 12:13 IST on BSE even as the company won a contract worth Rs 3390 crore.

Meanwhile, the BSE Sensex was down 134.28 points, or 0.77%, to 17398.66.

On BSE, 38,500 shares of the scrip were traded. The stock had an average daily volume of 1.37 lakh shares on BSE in past one quarter.

The scrip had touched a high of Rs 2035 and a low of Rs 1988 so far during the day. The stock had hit a 52-week high of Rs 2925 on 7 November 2007 and a 52-week low of Rs 970 on 16 March 2007.

The scrip had underperformed the market in the one month to 6 February 2008, falling 17.35% as against the Sensex's 16.02% decline. It had also underperformed the market in the past three months, slipping 27.20% against the Sensex's 7.30% slide.

India's biggest power-equipment maker by sales has an equity capital of Rs 489.52 crore. Face value per share is Rs 10.

At the current price of Rs 2002.50, the scrip trades at a PE multiple of 31.75, based on Q3 December 2007 annualised EPS of Rs 63.07.

The contract is for setting up two units of 500 megawatt each in a thermal power station in northern Uttar Pradesh state, scheduled for commissioning in the year 2011-12.

Bharat Heavy Electricals (Bhel)' net profit rose 15.6% to Rs 771.90 crore on 14.4% rise in sales to Rs 4964.14 crore in Q3 December 2007 over Q3 December 2006.

Bharat Heavy Electricals is engaged in manufacturing and distributing electrical, electronic, and mechanical and nuclear power equipment.