Bhel, however, told stock exchanges after trading hours on Monday that the company “as of now” has not received this order from NTPC.
“The company had submitted a price bid on 21.12.2023, and is the only bidder, for the mentioned NTPC tender, which is an activity in the normal course of business,” said the state-owned firm in the release. “Submission of bid does not result into automatic bagging of an order.”
Shares closed at ₹265.15 on the NSE Monday, after reaching a fresh 52-week high of ₹275.85 during the day.
“The rise in Bhel shares happened after the investment approval for NTPC’s third phase of the 1600mw Singrauli Thermal Power project came through, for which Bhel was the sole bidder.
The market put two and two together and shares moved upwards in line with the news,” said Subhadip Mitra, executive director, Nuvama Institutional Equities.The stock has jumped nearly 34% so far in 2024, amid optimism that the government is focussing on both renewable energy and thermal capex given the rising demand.Analysts said the stock has risen on the back of the company’s rising order book.
“The company’s order book remains strong in excess of 1 lakh crore but the key is the execution,” said Aamar Deo Singh, Sr. vice president – research at Angel One.
Singh says that the company is back on its growth trajectory, with diversification into railways and defence also expected to pay off.
Despite the 250% run-up in Bhel shares in the past year, they are still 47% away from the lifetime highs of 390 seen in November 2007.
Analysts recommend buying the stock only on declines.
“While our target price of 265 for the stock has been realised, directionaly we remain positive,” said Mitra. “Investors can look to enter the stock once some cool-off in the price is seen.”
Morgan Stanley has a price target of 220 on the stock, whereas Jefferies has an ‘underperform’ rating and a target of 90.