BHEL stands for Bharat Heavy Electricals Limited. It is a government-owned enterprise in India. The company is engaged in different sectors, mainly, power, oil and gas, and renewable energy. It also manufactures power plant equipment. BHEL is present in over 82 countries around the world.
*Note: Prices that are specified above is based on INR
BHEL Historical Share Price (NSE)
BHEL’s market capitalization, as of March 6, 2018, stands at over Rs.33,000 crore.
Wealth and recent performanceQ1 FY 2018-19
- For the June quarter of the financial year 2018-19, Bharat Heavy Electricals Limited reported its income from operations to be at Rs.5,790.08 crore. With respect to the same quarter for the previous fiscal year, the income has improved by a little over Rs.400 crore. However, q-o-q, there has been a drop of more than Rs.4,000 crore.
- Considering the expenses for the period, they were more or less similar in comparison to the Q1 FY 2017-18.
- Considering the profitability of the company for the period, it was reported to be at Rs.155.58 crore, as against a profit of Rs.80.02 stated for the corresponding quarter of the previous fiscal year.
- The company’s basic earnings per share (EPS) grew from Rs.0.22 to Rs.0.42, y-o-y.
- For the year ended on March 31, 2018, the company’s standalone income from operations was stated to be Rs.27,850.44 crore. Comparing this figure with the one reported for the previous fiscal year, the revenues have improved by a little over Rs.100 crore.
- However, considering the total expenses that the company incurred over the year, the figure stood at Rs.28,169 crore. With respect to the previous fiscal year, the expenditure for the period dropped by a little over Rs.1,600 crore.
- Consequently, the company’s profitability for the year improved dramatically over the previous fiscal year. During the year, BHEL reported a standalone profit before tax of Rs.1,585 crore - an improvement of more than 150% y-o-y. Considering the net profit after tax, improved by 63% y-o-y to stand at Rs.807 crore.
- For the FY 2017-18, the company’s order book was worth Rs.40,932 crore - a 74% jump over the previous fiscal year. The Board has also recommended a final dividend of 51%. The basic earnings per share (EPS) for the year were Rs.2.20 as against an EPS of Rs.1.35 for the FY 2016-17.
- The company’s total non-current liabilities were reported to be worth Rs.8,937.8 crore as of March 31, 2018 - an increase of a little over Rs.100 crore y-o-y.
- According to the quarterly financial reports released by BHEL, its total income was Rs.6,763.84 crore for the quarter ending December 2017.
- This was a decrease from the total income reported for the previous quarter ending September 2017 at Rs.6,782.08 crore but an increase from the corresponding period in 2016 when the total income stood at Rs.6,738.60 crore.
- Therefore, it is clear that the total income for the December quarter in 2017 ended with a decrease in comparison to the previous quarter but was still higher than the income for the corresponding period in the previous year.
- The profit before tax was Rs.189.84 crore in the quarter ending December 2017 while it was Rs.147.25 crore for the previous quarter and Rs.124.55 crore for the quarter ending December 2016.
- Thus, it is clear that the company has posted a steady increase in profit before tax for a year.
- The net profit for the quarter ending December 2017 was Rs.153.19 crore and the net profit for the corresponding period in 2016 was Rs.93.54 crore. The net profit for the quarter ending September 2017 was Rs.115.42 crore.
- Thus, it can be observed that BHEL increased its net profit over the course of the financial year 2016–2017.
- In January 2018, the stock price for BHEL opened at Rs.92.90 on the BSE and at Rs.92.65 on the NSE.
- The stock appeared to gain steadily till mid-January 2018 and dropped a little right after. This was a temporary situation that lasted only a few days.
- The stock then gained again and remained at or around Rs.100 for a few days till the beginning of February, at which point it dropped again by about Rs.6 and then steadily gained in price over the next few days.
- This increase lasted till almost mid-February and the stock rose to Rs.97 and then an interim 40% dividend was announced.
- The news regarding the dividend caused the stock to drop again and it hovered close to Rs.90 for the rest of February, eventually dropping to below Rs.90 after the first week of March.
- For the remainder of March, the BHEL shares were traded at levels varying from Rs.81 - Rs.90. The closing price on March 28, 2018 was Rs.81.35 on the NSE. In the first week of April, the shares gained a little over 8% to go above Rs.88.
- Things didn’t change significantly for the remainder of the month as the shares maintained their bearings at levels above Rs.88. The stock price of Bharat Heavy Electricals Limited on April 30, 2018, was Rs.87.80.
- Over the course of May, the share price dropped by a little over 5% to go below the Rs.80 mark. For most of the month, the shares were seen trading hands at levels above Rs.75. A similar trend was observed through the months of June and July. The shares were in a state of steady decline. In mid-July, the scrip hit its 52-week low at Rs.64.45.
- In August, however, the shares staged a gradual recovery. The BHEL shares gained a little over 25% to reach their previous levels above Rs.80. The closing price on August 31, 2018, was Rs.80.60.
Stock history (2016 and 2017)
- The stock for BHEL opened at a price of Rs.112.67 on the BSE and NSE in January 2016.
- In March 2016, BHEL’s stock opened at a price of Rs.61 on the BSE and Rs.60.97 on the NSE. This was a steep drop from the initial price the stock opened with for the year 2016.
- By the end of March 2016, the stock closed at Rs.75.84 on the BSE and Rs.75.90 on the NSE. By the end of March 2016, the stock had gained steadily and closed at a much higher price than it opened with for the month.
- In summary, the final quarter of 2015–2016 was a period of gain for BHEL’s stocks.
- BHEL’s stock continued to gain steadily and by the end of June 2016, the stock closed at Rs.82.14 on the BSE and Rs.82.57 on the NSE. The first quarter of 2016 was also a period of gain for the stock price of BHEL.
- By the end of September 2016, the stock closed at Rs.89.77 on the BSE and Rs.89.80 on the NSE marking the third straight quarter in which the stock gained in price. In September 2016, a 20% final dividend was announced.
- By the close of December 2016, the stock closed at Rs.80.70 on the BSE and Rs.80.80 on the NSE. While the third quarter stock price was not as high the second quarter and the stock did not gain much, the reduction in price was due to the dividend payout. Dividend payouts reduce the stock price in proportion to the payout. While the drop in stock prices is not always immediate, it will take place eventually, in this case, resulting in a reduction in stock price in the quarter that followed the dividend payout.
- By the end of the fourth quarter in March 2017, the stock price closed at Rs.108.74 on the BSE and Rs.108.57 on the NSE. This goes on to show that the stock gained steadily over the final quarter for 2016–2017, almost reaching the price it opened with in January 2016.
- A 40% interim dividend was announced in February which appears to have caused another drop in the stock price and by end of the first quarter in June 2017, the stock closed at Rs.90.24 on the BSE and Rs.90.20 on the NSE.
- A final 39% dividend was announced in August. By the end of the second quarter in September 2017, the stock closed at Rs.84 on BSE and Rs.83.95 on NSE. A bonus at a ratio of 1:2 was announced at the end of the second quarter in 2017.
- The announcement of the bonus appeared to boost the stock price. By the end of the third quarter in December 2017, the stock closed trading at Rs.92.60 on the BSE and Rs.92.50 on the NSE. This was still not as high as the price the stock opened with in the beginning of 2017 but it was an increase from the stock price compared to the previous quarter.
Is it a good idea to invest in BHEL stocks?
- BHEL is a Public Sector Undertaking by the Government of India, and it is a Maharatna company. The fact that it is a Maharatna company indicates that it has shown consistent strong performance.
- In terms of dividends, BHEL has paid out dividends at least three times in the period spanning 2016–2017.
- The Indian government is expanding power generation capacities to meet increasing demand. This could potentially lead to more business for BHEL.
- BHEL could potentially be a good long-term investment plan based on the dividends it has offered in the past two years.
- The company has successfully landed a number of contracts to build or assist in the building of a number of power plants all over India in the last decade.
- In the financial year corresponding to 2016–2017, BHEL has either commissioned or synchronized 8,539 MW of equipment used in power generation.
- BHEL has a number of projects that are either in the pipeline or in progress in different countries around the world.
- While a number of reasons could be stated as to why investing in BHEL stock could be beneficial, it is better to do individual research based on personal interests and risk appetites.
BHEL is a Government of India owned enterprise that focuses on sectors like power plant engineering, railways, renewable energy, and so on. It also takes up Defence contracts. One of BHEL’s aims is to ensure that India achieves self-sufficiency in indigenous manufacturing for power plants and such. Due to its outstanding track record in the field of power generation and installations of electrical equipment, the Government of India conferred the status of Maharatna on the company. The status of Maharatna is exclusive and has been granted to only nine companies so far, including BHEL, for outstanding performance and for their contribution to the growth of India. Most of the revenue generated by BHEL is from the sale of equipment like boilers and turbines that are used in power generation. It also supplies the Indian railways with electric locomotives. BHEL invests a considerable amount in research and development. The company’s major manufacturing plants are located in Tiruchirapalli, Bhopal, Ranipur (Haridwar), Hyderabad, Ranipet, Jhansi, Bangalore, Goindwal, Rudrapur, Tirumayam, Visakhapatnam, Jagdishpur, Varanasi and Mumbai.
In the beginning, there was a company called Heavy Electricals (India) Limited which was merged with BHEL in 1964. As mentioned before, BHEL is a public sector undertaking of the Government of India. At present, BHEL is India’s largest company dealing in power generation and heavy electrical equipment manufacturing. In 1991, BHEL was converted into a public limited company. As of 2017, BHEL has had a hand in supplying equipment that generated 55% of the total installed power generation capacity in India. In addition to power generation, the company has also branched out into fields like water treatment.
BHEL is headed by Mr. Atul Sobti who is the Chairman and Managing Director. Mr. Amitabh Mathur and Mr. Subrata Biswas are Executive Directors. Mr. Inder Pal Singh is the Compliance Officer and Company Secretary. Mr. D. Bandyopadhyay is the Director of Human Resources and Executive Director.
Listings and stock indices
BHEL is listed on the BSE and the NSE on which stocks of BHEL can be bought and sold.
BSE: 500103; NSE: BHELEQ; ISIN code: INE257A01026; Sector: Engineering; IND: Engineering - Heavy
Other than this, the company forms part of indices like the Nifty 100, Nifty 500, S&P BSE 100, S&P BSE SENSEX Next 50, et cetera.
It is also listed on the Bangalore Stock Exchange Ltd., Calcutta Stock Exchange Association Ltd., MCX Stock Exchange, et cetera.
Registered office: BHEL House, Siri Fort, New Delhi – 110049, India
Fax: +91 11 26493021; +91 11 26492534
Telephone: +91 11 66337000
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